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The Federal Council has adopted a motion proposing that Parliament increase the existing upper limit of administrative fines prescribed in the Posted Workers Act. The upper fine limit would increase from Sfr5,000 to Sfr30,000 in case of breach of minimum wage and work conditions. The change aims to prevent foreign employers from salary dumping on the Swiss market.

The Federal Council has decided to implement the mass immigration initiative consistently. Quotas and quantitative limits will apply to all foreign nationals wishing to immigrate to Switzerland. In order to reduce immigration pressure and demonstrate goodwill, the Federal Council first wishes to implement local changes by promoting work for the unemployed and the integration of disabled people into the labour market.

The Federal Office for Migration is now known as the State Secretariat for Migration. The name has been changed due to the authority's growing importance and wide-ranging responsibilities. The State Secretariat for Migration is the federal authority which regulates the conditions under which people can enter Switzerland in order to live and work. It also decides who will receive asylum.

The Federal Council has announced that the total number of work permits submitted to quotas for 2015 will be reduced by 27%. The council decided to reduce the amount of available quotas for non-EU and non-European Free Trade Association nationals and service providers, in order to encourage Swiss companies to better tap the potential local workforce.

Foreign employers deputing employees to Switzerland must cover the actual costs of boarding, lodging and transport. 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. Swiss authorities accept that in practice foreign employers use a monthly lump-sum allowance system in order to cover the costs.

Croatia's accession to the European Union has had no bearing on the Agreement on the Free Movement of Persons between Switzerland and the European Union. The admission of Croatian nationals to Switzerland is still subject to the provision of the Foreign Nationals Act. However, Switzerland grants unilaterally preferential treatment for Croatian nationals who want to come to Switzerland to work.

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Real Estate


An initiative to restrict the construction of second homes recently came into effect. It will have a major impact on the property sector, as in communities where at least 20% of housing is already used as second homes, permission will not be granted for the construction of further second homes. Since the adoption of the initiative, a dispute has arisen as to how this clause should be interpreted and implemented.

The revised Civil Code recently came into force, introducing a register-based mortgage note and launching an integrated clearing system for the settlement of real estate transactions. With a register-based mortgage note, the creditor will be registered in the Land Register, which enhances transparency. The handling of real property transactions will be facilitated by the 'Terravis' electronic platform.

The Swiss Code of Civil Procedure has taken effect, replacing 26 cantonal Codes of Civil Procedure. The new code upgrades the role of the conciliation authority in landlord-tenant disputes by giving the authority greater competency. The parties can now agree to enter in mediation at any time during court proceedings, giving more weight to alternative dispute resolution.

Although triple-net lease agreements are still not often implemented in Switzerland, as a consequence of the entry of foreign investors into the Swiss commercial real estate market, recently such leases have become an increasingly common topic of discussion among real estate professionals, in particular in relation to sale and leaseback transactions and lease agreements for new single-tenant commercial buildings.

The federal Parliament has decided to revise aspects of the Swiss Civil Code on real estate. At the core of the revision is the introduction of a register-based mortgage note and an electronic real estate information system through which interested persons can obtain reliable and up-to-date information on real property online. The changes will facilitate real estate financing and transactions.

Switzerland will be one of the first countries in the world to establish a cadastre in which a significant proportion of property restrictions under public law are documented and published. Thus, legal certainty will be strengthened and the acquisition of information simplified. It will save the private sector time and money, as the relevant information regarding real estate will be more readily available.

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