France makes the suspense last
Paris has until this evening to sign a new European deal on “home office” social security for cross-border workers, already signed by Berne. Otherwise, the approved duration will be halved.
The French labor minister, Olivier Dussopt, explains France’s delay in signing the new European rules by studying the effects of unemployment insurance.
AFP
Will the long soap opera of telecommuting for cross-border workers finally come to an end? Does it end up with a solution that satisfies both the Swiss and French countries and Swiss employers and their European workers living in neighboring France? This is the belief of many employers and employees. Explanations.
What are we talking about?
This Saturday from 1R Effective July New European rules In the field of social security for telecommuting of European cross-border workers.
These allow cross-border workers to work less than 50% of their working hours away from their country of residence, while still being subject to the social insurance of their employer’s country.
These new rules are more interesting than the normal rules, which only provide a 25% “home office” without joining the social insurance of the country of residence.
Remember that these normal rules have been relaxed during the Covid-19 pandemic. The aim was to allow cross-border workers, who could technically do so due to health restrictions imposed by the authorities, to exercise from home and not affect social insurance. Conciliatory and temporary contempt was postponed several times. Finally, this Friday, June 30, 2023. This will be the last time a new deal is reached.
What’s the problem?
On 31 May Switzerland signed the new European Treaty. The same applies to other countries that share a common border through which tens of thousands of cross-border workers pass every day: Germany, Liechtenstein and Austria.
But neither Italy nor France have this (yet). The fact that Paris has not signed the agreement (at the time of writing) is particularly problematic Most of the cross-border workers come from France Europeans worked in Switzerland in general, and in the provinces of Geneva and Vaud in particular.
What is the sticking point?
One technical point still makes France hesitate. This Tuesday afternoon at the French National Assembly in Paris, Minister of Labour, Full Employment and Integration Olivier Dussopt, MP for Alsace. Responding to a question from Stephanie Kochert, she was concerned that France had not yet signed the new European agreement.
Olivier Dussopt responded that the French government is studying the effects of the deal on the unemployment insurance scheme, as he explains in the video below.
The minister concludes by affirming France’s desire to make a decision “in the hours, in the coming days”. Without further details.
What are the risks for cross-border workers?
In the next few hours, if Paris still hasn’t signed a new European agreement on social insurance for telecommuters across borders, the usual rules will apply again.
However, at the same time, A long-standing Franco-Swiss agreement on telecommunications taxation for cross-border workers, The “home office” gives him 40% tax-free in the country of residence for teleworked hours. It was negotiated between Bern and Paris on December 22, 2022. A Admission to a bilateral double taxation agreement An agreement to this effect was signed between our two countries on Tuesday, June 27.
Therefore, a gap of approximately one day between the normal European rules on telecommuting social coverage for cross-border workers (up to 25% of working time) and the prolonged Franco-Swiss agreement on the tax aspect. (up to 40 %).
So, to avoid any complications, Swiss employers are likely to offer only 25% of their working hours in telework to their employees who live in neighboring France, starting this Saturday July 1.
The latter will see the duration of approved telework without impact being cut in half (one day instead of two) compared to the current situation. This may not be without disrupting the balance between professional life and personal life that the “home office” allows.
And what are the implications for Swiss companies?
During the health crisis, employers and their cross-border employees who teleworked were in the spotlight, both professionally and personally, in terms of management and organization. Their only view is the expiry date of the renewal of the “home office” of cross-border workers’ agreements on taxation and social insurance, compatible and temporary derogations.
This situation has created uncertainty and discomfort for companies and workers alike. A long-standing Franco-Swiss agreement on the tax aspect helped facilitate (only on this point to date).
The fact that France has not signed the new European agreement on the social aspect of telecommuting for cross-border workers will, on the one hand, force employers to rethink part of their internal organization and, on the other hand, sign new riders to employment contracts specifying new “home office” terms and conditions that have cross-border workers.
So the next few hours will be decisive.
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