Combating Undeclared Work: Understanding to Better Protect Yourself
Undeclared work (working "off the books") is not a "trick" to save money; it is a practice that weakens our social system and exposes both employers and employees to serious legal and financial consequences.
💡 What is Undeclared Work?
Undeclared work consists of engaging in gainful activity without complying with current legal obligations, notably:
* Failure to register with social security (AHV/AVS, IV/AI, EO/APG, ALV/AC).
* Non-compliance with tax obligations.
* Failure to apply for a work permit for foreign nationals.
⚠️ The Risks: Why Avoid It?
For the Employee: Invisible Precariousness
- Lack of insurance coverage: In the event of a workplace accident, you risk not being covered.
- Pension gaps: Periods worked off the books do not count toward your retirement (AHV/LPP). This significantly reduces your future pensions.
- No legal protection: In the event of a dispute with the employer or non-payment of salary, you have virtually no legal recourse.
- Loss of rights: No unemployment benefits, family allowances, or maternity benefits linked to this income.
For the Employer: Heavy Sanctions
- Fines and criminal penalties: Fines can reach tens of thousands of francs.
- Retroactive payment of contributions: The employer must pay all unpaid social security contributions (both employer AND employee shares) for several years.
- Exclusion from public procurement: Faulty companies may be barred from bidding for government contracts.
- Civil liability: If an employee is seriously injured, the employer may be required to pay health costs and lifelong disability pensions out of pocket.
✅ The Benefits of Declared Work: A Contract of Trust
- Social Security: Protection in the event of illness, accident, unemployment, and maternity.
- Economic Justice: Guarantee of receiving the agreed salary and benefiting from paid holidays.
- Solidarity: Contribution to the funding of public services (schools, roads, hospitals) that we all benefit from.
- Peace of Mind: Working and hiring legally avoids the stress of inspections and reports.
⚖️ Legal Framework and Resources
Undeclared work is subject to strict laws to ensure fair competition between companies and the protection of workers.
Reference Texts
- Federal Act on Measures to Combat Undeclared Work (BGSA) - SR 822.41
- Ordinance on Undeclared Work (VZSA) - SR 822.411
Useful Links for Information
- www.admin.ch: The Swiss Confederation portal.
- www.no-undeclared-work.ch: National awareness campaign with practical guides.
- SME Info: For employers wishing to regularize their situation.