Everything you need to know about cross-border remote working in Switzerland

Now a common practice, remote working offers many advantages. However, this new way of working raises numerous questions regarding legislation and taxation. What about cross-border workers in Switzerland? Are you a cross-border worker or hoping to become one, and have questions about remote working? b-sharpe explains everything in this article and sets out the very latest rules on cross-border remote working!

Working from home: an increasingly popular way of working

What is remote working?

As a reminder, remote working refers to carrying out one’s professional duties, either partially or entirely, outside the company’s premises. It may have been introduced at the request of the employee or the employer. Previously practised by only a minority of workers, it has become increasingly popular since 2020 in the wake of the health crisis. A trend that many believe is here to stay. As a result, many companies now offer their employees the option to work from home for a few days a week.

The pros and cons of working from home

This new way of working offers numerous benefits. For employees, working from home primarily saves time – particularly time spent travelling – by eliminating the need to commute between home and the workplace. It is also often more cost-effective: food and transport costs are reduced. It generally allows for better management of working hours and greater autonomy. Being at home, on one’s own, leads to greater concentration, less stress and, ultimately, increased productivity at work. This therefore benefits the employer too! Finally, it allows others to work from wherever they choose and to organise their free time more effectively. Personal life and work-life balance are generally improved as a result.

As for the downsides of remote working, these can include a certain degree of isolation, as you are physically separated from your colleagues. There is also a risk of poorer information flow and reduced team cohesion. However, many companies are successfully rising to the challenge of remote working and keeping their staff motivated!

Working from home in Switzerland

Is working from home not very common in Switzerland?

Apart from the specific context of the health crisis (during which remote working was made compulsory in Switzerland), remote working does not appear to be very common in Switzerland today. According to the Federal Statistical Office, in 2022, the vast majority of the Swiss population (71.3%) carried out their work at a fixed workplace. Only 11.8% of Swiss workers work from home. As can be seen, remote working appears to be a relatively uncommon practice among workers in Switzerland…

However, remote working is indeed permitted in Switzerland. Legally speaking, public law provides for this option for Swiss federal employees. However, there are no regulations concerning remote working in private law. In practice, it depends on the employer, who may decide whether or not to grant their employees days of remote working. The pandemic has opened up a dialogue on this subject in many companies.

Being a cross-border worker and working remotely for a Swiss company

The specific case of cross-border workers

Whilst many French people have decided to move to Switzerland to work, others have chosen to live close to the border, in France. By the end of 2022, a total of 380,000 people were crossing the Franco-Swiss border every day to work in neighbouring Switzerland, according to the Federal Statistical Office. Life as a cross-border worker brings them many benefits, particularly in terms of tax and the economy, or even for their retirement. It also often allows them to enjoy a higher salary, as the Swiss minimum wage is higher than in France. But in this specific case, what about remote working?

The Franco-Swiss agreement on remote working

In the wake of the health crisis, and in response to growing demand from French cross-border workers for greater flexibility regarding remote working, discussions were launched on the subject to reach an official decision. After several months of negotiations, France has signed an agreement with certain Swiss cantons (Bern, Solothurn, Basel-Stadt, Basel-Landschaft, Vaud, Valais, Neuchâtel and Jura). This agreement provides employees with greater flexibility regarding remote working. Consequently, from 1 January 2023 until 30 June, French cross-border workers employed by a Swiss employer may work from home. This is permitted for up to 40% of their working hours, without affecting their tax status. 

And what about the other cantons? A second agreement has been reached to maintain taxation in Switzerland, provided that remote working does not exceed 40% here either. Please note that if this 40% threshold is exceeded, French cross-border workers will be obliged to pay their taxes in France. Finally, an important point to note: remote working has no effect on your choice of health insurance. If you are covered by the French health insurance scheme, you will remain affiliated to it. The same applies if you are covered by the Swiss social security scheme.

Towards a long-term agreement on remote working for cross-border workers in Switzerland?

What will be decided after June 2023 regarding cross-border teleworkers? It appears that France and Switzerland plan to formalise the agreement on teleworking in an addendum to the convention established between the two countries. If this addendum is signed before 30 June 2023, the provisions of the amicable agreement will apply until 31 December 2024. If it is not signed by that date, the provisions of the agreement will cease to apply from 1 July 2023. b-sharpe, your currency converter and specialist financial intermediary in Switzerland, will be sure to keep you informed of any developments regarding the agreements on the situation of remote working for cross-border workers!