Hiring and working a gardener, a childcare worker or an illegal housekeeper to take care of the house, who has never thought about it?
The temptation is great, because the economy that this represents seems, at first glance, interesting. However, you must be aware that you are taking risks and you are facing certain constraints that may prove burdensome.
Some facts and figures
- Undeclared work is estimated at 5.8% of gross domestic product in 2018 and 5.5% in 2019.
- 78 inspectors and 37,111 checks on companies and individuals in 2018.
- CHF 1 212 647 in almonds and fees collected in 2018 (increasing).
- CHF 4,500,000 contribution by the Confederation in 2017 (increasing).
- The construction sector, the finishing sector and the cleaning sector were subject to the greatest number of inspections.
What is moonlighting?
- cleaning work
- laundry care
- the kitchen
- assistance/care for children, the elderly or sick people
Declaration to organizations: lucrative activity or not?
Why declare a lucrative activity?
The risks you face as a domestic employer
- Penalties, fines and even imprisonment
- All AHV contributions must be paid retroactively, including interest on arrears.
- You are not covered in the event of an accident, which means that if an accident were to occur, you would be responsible for all costs related to it.
Disadvantages for domestic workers
- Absence of
- contribution to the compensation fund or to the pension fund, i.e. no pension received at retirement age
- accident insurance with an employer
- unemployment benefits entitlement
- medical leave
- statutory holidays
- Non-Swiss nationals risk losing their residence permit
Negative consequences in general
- The loss of revenue for the State and social insurance
- Distortions of competition between companies and between workers
- The abolition of the right of workers to social insurance benefits
- Wage underbidding and worker exploitation
What about the companies?
- Possible reduction of financial assistance over a period of up to 5 years;
- Possible exclusion from certain public contracts over the same period ;
- Name and address of the company disclosed on the SECO website ;
- Additional payments on unpaid contributions.
Declaration of the domestic worker, the steps
- Conclude a written or oral employment contract
- Registering with the compensation fund
- Affiliate with:
- accident insurance
- daily sickness benefit insurance
- an occupational pension fund
- If foreign workers: notification or authorization requirements
- No simplified settlement procedure: you are obliged to declare that the employee is liable to pay tax at source.
- Possible application for family allowances for the worker
- Paying wages: making a statement and payroll deductions
- Report the wage statement to the compensation fund
- Paying dues
- Issue a salary certificate
Detailed information by clicking on the following link:
What the law says
If you wish to hire a person (domestic worker), there are several points to respect:
These differ according to the Collective Agreements, so be sure to find out!
Moreover, Collective Agreements govern not only wages but also working conditions such as leave, holidays, breaks, etc.
Don't want to bother you with red tape?