Foreign Employers To Cover Costs For Boarding, Lodging And Transport

Author:Mr Ara Samuelian and Adrian Howald
Profession:Suter Howald Attorneys at Law

According to Swiss deputation law and Article 24 of the Foreign National Act, only suitable accommodation must be provided to employees deputed to Switzerland. However, according to the practice of Swiss immigration authorities, foreign employers deputing employees to Switzerland must cover the actual costs of boarding, lodging and transport (to, out of and within Switzerland). Further, the costs must be paid on top of salary and cannot be included as part of the Swiss minimum salary customary for the place and trade (minimum salary must be reached in order to avoid wage dumping in Switzerland).

The actual costs incurred by the deputed employee for boarding, lodging and travel while working in Switzerland must be reimbursed to the employee by the foreign employer. Hence, in principle, the employee should collect all receipts in order to get his or her expenses reimbursed by the foreign employer. However, as checking all receipts involves a great deal of administration for foreign employers, Swiss authorities accept that in practice foreign employers use a monthly lump-sum allowance system in order to cover the employee's actual...

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