Labor market controls in the canton of Zurich are having an effect
The accompanying measures for the free movement of people and the implementation of the federal law against undeclared work continue to make a contribution to effectively protecting the purchase from abusive wage and working conditions. This is shown by the reports published today by the State Secretariat for Economic Affairs (SECO).
The joint professional committees of the social partners are responsible for monitoring wage undercutting in sectors with generally binding collective labor agreements (ave GAV). In the case of sectors without an ave GAV, the cantonal Tripartite Commission (TPK) is responsible for the control activities. The checks carried out are aimed specifically at endangered sectors, companies and groups of people where violations are most likely to be suspected.
Over 2’300 workers and 3’257 workers checked
The cantonal TPK checked 2,357 Swiss and foreign workers and 3,242 employees as well as 143 self-employed people last year. Wage undercutting was found in 547 cases. The affected employers will be asked to make subsequent payment of the wage differences withheld and to adjust the employment contract (in the case of Swiss employers) as part of the mutual agreement procedure provided for by law.
The random checks are risk-based or based on suspicion in all sectors. In 2021, special attention was paid to the high-risk sectors of the flooring and parquet trade, retail trade, the car trade, mechanical engineering, event organisations, and health and social services. Since this is a risk-based control strategy, the results are not representative of the overall situation on the Zurich labor market.
Another area of the accompanying measures relates to the implementation of the posting law. The Office for Economics and Labor (AWA) is responsible for this. It sanctions knowledge of the minimum working and wage conditions as well as the obligation to cooperate when foreign personnel are sent to Switzerland. In 2021, the AWA imposed a total of 443 administrative fines and 153 service bans on foreign companies and the self-employed. In order for the AWA to be able to sanction violations of the Posting Act, it MUST be dependent on the corresponding reports from the social partners.
Efficiently fighting undeclared work
In the area of undeclared work, the AWA checks whether workers, employees and the self-employed are complying with the reporting and permit requirements of social security, foreigners and withholding tax law. In 2021, 1,565 company and 2,661 personal checks were carried out and 46 cases of undeclared work were uncovered.
In addition to carrying out controls, the AWA also performs coordination tasks in the area of undeclared work. It forwards reported violations and suspicious cases to the responsible special authorities. As a result, 62 cases in immigration law, 128 cases in social security law and 4 cases in withholding tax law were uncovered by the special authorities. The cooperation between the AWA and the special authorities, courts and law enforcement agencies has been continuously optimized in recent years.
Focus of controls on sectors severely affected by Corona
During inspections last year, the TPK also took into account the effects of the pandemic on the labor market and, in addition to the existing risks in its sectors, particularly focused on unemployment and short-time work. These sectors were closely monitored in order to be able to counteract any negative side effects such as undercutting wages due to the greater availability of workers and abuse of short-time work compensation.