¶ Wage Protection: Implementation and Accompanying Measures

Source: Dispatch on the Approval of Bilateral III, Chapter 2.3 (pp. 326--339, 342--344)
PDF Link | Federal Gazette 2025-0749

---

¶ Summary

Wage protection comprises 14 concrete measures in four categories, implementing the principle "equal pay for equal work at the same location". The revision of the Posted Workers Act (PWA), the expenses regulation, CLA certificates in public procurement and the strengthening of social partnership constitute the core elements.

---

¶ Four Categories of Measures

¶ Overview

---

¶ PWA Revision

The revision of the Posted Workers Act is the central legislative instrument:

¶ Advance Notification Period

¶ Security Deposit Obligation

• Security deposit is limited to repeat offences
• First offence: warning and additional deadline
• Repeat offence: security deposit until full settlement
• More proportionate application, less bureaucracy for reputable companies

¶ Documentation Obligation

• Posting companies must keep employment contracts, pay slips and working time records available
• Controls can be carried out at any time without prior notice
• Digital documentation is promoted

¶ Service Ban

• In case of serious or repeated violations of wage protection provisions
• The ban applies to the entire company (not just the individual contract)
• Duration: depending on the severity of the violation
• Publicly accessible register of banned companies

---

¶ Expenses Regulation

¶ Principle: Art. 327a CO

The principle "equal pay for equal work at the same location" is complemented by the expenses regulation:

• Posted workers receive expenses according to Swiss standards
• Prevention of cost dumping through low expense rates from the country of origin
• Clear distinction between wages and expenses

¶ Practical Implementation

---

¶ CLA Certificates in Public Procurement

The new regulation primarily concerns the construction sector:

¶ KBOB Recommendation

• The Federal Coordination Conference for Construction and Property Services (KBOB) issues recommendations
• CLA certificates as proof of compliance with working conditions
• Applies to public procurement above certain thresholds

¶ Procedure

1. Company requests CLA certificate from the competent joint commission
2. Joint commission verifies compliance with CLA conditions
3. Certificate is presented in public tenders
4. Missing certificate may lead to exclusion

---

¶ Measure 14: Strengthening Social Partnership

Measure 14 is the most comprehensive individual element of the wage protection package:

¶ Dismissal Protection for Employee Representatives

¶ Improvements over Current Law

---

¶ Facilitation of Extension

The declaration of general applicability (extension) of collective labour agreements is facilitated:

¶ Special Majority

• For the renewal of an existing extension, a special majority suffices (instead of unanimity)
• Intended to ensure stability and continuity of the CLA system
• Prevents a single association from blocking a renewal

¶ Improved Legal Protection for Outsiders

• Non-participating employers (so-called outsiders) receive improved legal protection
• Can challenge disproportionate CLA provisions
• Strengthens acceptance of the extension system

---

¶ Non-Regression Clause

The non-regression clause safeguards the Swiss level of wage protection:

• Switzerland commits to not lowering the existing protection level
• Applies to all elements of wage protection (PWA, controls, sanctions)
• Is formulated unilaterally in favour of Switzerland
• Creates long-term planning certainty for social partners and the economy

---

¶ Overview: 14 Wage Protection Measures

---

¶ Key Points

---

¶ References

• Dispatch Bilateral III, FG 2025 749, Chapter 2.3 (pp. 326--339, 342--344)
• Draft Posted Workers Act (D-PWA)
• Code of Obligations (CO), Art. 327a
• Federal Act on Public Procurement (PPA)
• KBOB Recommendations