When Authorities Come Knocking: A WorkFlex Case Study in Compliance Management

Background

In early September 2024, one of WorkFlex's clients faced a labour inspection during a cross-border business trip. The case involved an employee traveling to their client’s office in Switzerland when Swiss labor authorities conducted a routine workplace inspection. This case proved to be a significant milestone, demonstrating the effectiveness of WorkFlex's compliance management system and proactive approach to cross-border workforce management, particularly in managing business travel compliance.

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The situation

During a workplace inspection, the labour authorities identified an employee that was not physically present during the check in that specific location at the client's premises. The Swiss authorities, known for conducting random compliance checks without prior notice, subsequently issued an official letter requesting documentation verification.

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Compliance risks and challenges

The case involved assessment and verification of critical compliance areas under Swiss regulations, such as Posted Workers Directive (PWD) compliance requirements and employment conditions verification, including working hours and salary documentation.

In cases like these, non-compliance with these aspects could lead to consequences ranging from minor implications to serious sanctions depending on the company-specific background, for example:

1. Fines of up to CHF 30,000
2. Risk of business restrictions in Switzerland, including possible country-wide bans for severe violations

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WorkFlex's response and action

Upon notification, WorkFlex swiftly implemented a comprehensive response strategy. Our team immediately assumed direct communication with the Swiss authorities. We conducted a thorough review of all client documentation while standardizing document formatting to meet strict authority requirements. Throughout this process, we reviewed the Swiss-specific salary calculations conducted by the client, ensuring all submissions met local regulations. After managing the submission of required documentation, we maintained proactive communication, following up with authorities to ensure all requirements were satisfied.

After our thorough preparation and submission of documentation, the Swiss authorities completed their inspection within a few weeks.

They confirmed all documentation was in order, resulting in a successful resolution without any penalties or warnings for our client. This outcome validated our systematic approach to compliance management and authority engagement.

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Key learnings and impact

This case serves as a compelling demonstration of why business travel compliance cannot be overlooked in today's global regulatory environment. While this particular inspection occurred in Switzerland, it reflects a broader reality: authorities worldwide are increasingly vigilant about cross-border business travel compliance. Labor inspections, taking place systematically on a random and unpredictable basis, are becoming more common across jurisdictions as countries strengthen their enforcement of employment, tax, and immigration regulations.

WorkFlex's handling of this Swiss authority inspection showcased our deep expertise and professional approach to compliance management that extends across multiple countries and regulatory frameworks. Our ability to swiftly take charge of authority communications, provide all necessary documentation, and successfully resolve the inspection without any penalties validates our comprehensive compliance management approach.

As global mobility continues to increase and regulatory scrutiny intensifies worldwide, our proven ability to navigate these challenges provides essential peace of mind for companies managing international business travel.