Several hundred thousand French residents work in Switzerland. These workers pay unemployment insurance in Switzerland. However, their unemployment benefits, should they find themselves out of work, are covered by the French administration. In November 2023, French authorities announced a plan to cut the amount they pay to unemployed cross-border workers. This week, several French parliamentarians said they were against the idea, reported RTS.
Over recent months, anger has been rising across the regions of France bordering on Switzerland. Unions and elected officials in these regions are against the plan to cut unemployment payments by 50%. This week, France’s parliament appears to have yielded to the pressure, although the decision to axe the plan is not yet official.
Even if the recent u-turn is finalised it is unlikely to mark the end of the issue. French residents working in Switzerland have contributions for unemployment insurance deducted from their salaries. These are paid into Switzerland’s unemployment insurance fund. However, if the same worker ends up unemployed, their benefits are covered by the French administration rather than Switzerland’s unemployment insurance fund, a clearly inconsistent arrangement. Given France’s precarious financial situation, the inevitable hunt for savings is likely to keep the issue on the radar.
Currently, there is an arrangement between France and Switzerland regarding cross-border workers that requires Switzerland to transfer some the money it collects from the salaries of French resident workers to France. France might decide to exert pressure on Switzerland to increase the amount of these transfers.
More on this:
RTS article (in French) – Take a 5 minute French test now
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