"Fictitious self-employment" in Switzerland

Supposedly self-employed service providers (e.g., freelancers, contractors or subcontractors) in Switzerland are often in fact so-called “fictitiously self-employed persons”. As a result, the actual employer does not pay any social security contributions and there is a risk that the fictitiously self-employed person will not be covered by social protection for workers. If the fictitious nature of the self-employment is revealed, the employer faces various obligations, some of which are applied retroactively. But when is there fictitious self-employment and what are the legal consequences?

When is there an employment relationship or respectively fictitious self-employment? In practice, the distinction between normal employment and self-employment is important because of the different legal consequences. Therefore, it is necessary to examine, on the basis of economic circumstances, whether a service provider is actually self-employed or whether there is in fact an employment or similar relationship with all the rights and obligations associated with it.

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