Undeclared work is forbidden in Switzerland and can have multiple negative consequences, affecting both worker and employer.
Undeclared work denotes any gainful activity which is not declared, with a view to evading a required work permit or avoiding paying social benefits (AVS Compensation Office, Family Allowance Office, etc.).
Undeclared work is forbidden in Switzerland in principle. An employer must fulfill its obligations in terms of declaration and authorization of work for each of its employees. Undeclared work has numerous negative consequences for workers, employers and the State. These include distortion of competition between companies and workers, wage dumping, exploitation of workers and loss of revenue for the State and social security bodies.
To facilitate the administrative formalities for employers regarding activities paying small salaries, the law on undeclared work establishes simplified procedures. This is one way of encouraging companies to hire workers legally.