Reciprocal agreement Switzerland - Liechtenstein

Liechtenstein-Switzerland counterpart agreement

Liechtenstein and Switzerland have concluded a reciprocal rights agreement for the area of cross-border service provision, which takes into account the special relationship between Switzerland and Liechtenstein.

Counter-Law Agreement between the Swiss Confederation and the Principality of Liechtenstein on Cross-Border Mediation and Lending Activities

Counter-Rights Agreement

The Act of April 12, 2000 on the Placement of Employment and the Hiring of Personnel (Employment Placement Act, AVG), LGBl. 2000 No. 103, entered into force on June 7, 2000. Based on Art. 39 AVG, the government is authorized to conclude state treaty agreements or counter-law agreements for the areas of private employment services and personnel leasing, in particular on the regulation of cross-border service provision and bonding.

On the basis of this legal basis, Switzerland and the Principality of Liechtenstein concluded a first reciprocal rights agreement with legal effect from August 1, 2000, which forms the basis for the cross-border movement of services in the field of employment agencies and personnel leasing and for the regulation of the deposit issue between Switzerland and Liechtenstein. This agreement has now been renewed. It replaces the previous reciprocal rights agreement from 2000 and takes legal effect as of April 1, 2010.

The new reciprocal rights agreement provides in particular that companies must comply with the provisions applicable in the state of the place of employment on the basis of generally binding collective labor agreements (ave GAV) or standard labor agreements (NAV) with regard to wages and working hours as well as contributions to further training and enforcement costs or regulations on flexible retirement.
To this end, the permit issued by the State of the place of employment states that the authorities responsible for inspection in its territory may carry out inspections at the establishments in the State of origin and that the establishments must grant them free access to the workplaces and administrative offices at all times. Likewise, in the authorization order, the companies are obliged to provide the competent authorities of the state of the place of employment with documents such as employment contracts and rental contracts at regular intervals in order to check compliance with the wage and working time provisions stipulated in the ave CLA or NAV.

Parity commissions or inspection bodies for standard employment contracts that wish to carry out inspections in companies in the partner state on the basis of the new reciprocal rights agreement are, however, obliged to inform the Office of National Economy in the Principality of Liechtenstein and SECO in Switzerland in advance.

In detail, the most essential points of the agreement are as follows:

• Switzerland and the Principality of Liechtenstein agree on equal treatment of Swiss and Liechtenstein companies with regard to the cross-border provision of services in the field of personnel leasing and recruitment.
• The practice applied by Switzerland to companies from the Principality of Liechtenstein until the date of entry into force of this agreement shall conversely also apply to Swiss companies in the Principality of Liechtenstein.
• The deposits shall be governed by Art. 26 of the Ordinance to the Law on the Placement of Workers and the Hiring of Personnel, (Placement of Workers Ordinance, AVV), LGBl. 2000 No. 146.
• Under this agreement, only Swiss and Liechtenstein citizens are recognized as responsible persons of placement or lending companies.
• A confirmation of authorization is used to confirm to the counterpart state that the company fulfills the authorization requirements and, in the case of personnel leasing, that the deposit has been paid.
• Companies that repeatedly or in a serious manner violate of generally binding declared collective labor agreements (ave GAV) or standard employment contracts (NAV) applicable provisions regarding wages and working hours, as well as contributions to training and enforcement costs or regulations on flexible retirement, the permit is withdrawn.
• Between the authorities of the two states may be the necessary data regarding licensing, amendment or withdrawal, disclosed.

The competent Swiss authority to issue this authorization confirmation is the:

State Secretariat for Economic Affairs
Mediation and rental PAVV
Holzikofenweg 36
3003 Bern
Tel. (+41 31) 322 00 91

For the Principality of Liechtenstein, the Office of National Economy, Department of Economy, is responsible