Switzerland introduced a dual system of recruiting foreign labor in 2002. Under this system, nationals from EU and EFTA member states, regardless of their qualifications, who have signed an employment agreement with a Swiss-based employer are granted access to the Swiss labor market. Nationals from all other states (third-country nationals) are admitted in limited numbers, provided that certain conditions are met.

Third-country nationals may only be admitted if a candidate cannot be recruited from the labor market of Switzerland or another EU/EFTA member state. Swiss citizens, third-country nationals with either a long-term residence permit or residence permit allowing employment, and all citizens from those countries with which Switzerland has concluded the Bilateral Agreement on the Free Movement of Persons (i.e., EU and EFTA member states) are granted priority. Employers must prove that they have not been able to recruit a suitable employee from these priority countries despite intensive efforts.

Vacant positions must be registered with regional employment offices together with a request to register the vacancy in the European Employment System. Once a potential employee has been put in contact with the employer and subsequently turned down, the employer generally receives a questionnaire in which it can state the reasons the potential employee was not hired.

In addition, the employer must explain to the authorities why the search for a suitable candidate by means of the recruitment channels typically used in the specific industry (e.g., specialist journals, employment agencies, online job listings or corporate websites) was not successful. Suitable proof includes job advertisements in newspapers, written confirmation from employment agencies or other kinds of documentation. Often it is helpful for authorities if the employer submits a brief overview of all candidates, including a short explanation of which qualifications for a particular job were lacking. In special cases, the authorities can request that an employer intensify recruitment efforts.

The salary, social benefits and terms of employment for foreign workers must be in accordance with conditions customary to the region and the particular sector. Some sectors and businesses express these conditions in a collective labor agreement that is legally binding either on a national or cantonal level. When applications are submitted from businesses that do not have a collective labor agreement, the Swiss authorities usually request information directly from the employers' and employees' associations on the terms customary in a particular sector. By examining the salary rates and terms of employment beforehand, the authorities can ensure that foreign workers are not exploited and that Swiss workers are protected against social dumping.

When submitting an application, the employer must enclose an employment agreement that has been signed by both the employer and the employee and that contains a note reading "contract only valid on condition that the authorities grant a work permit." This provides both contracting parties with legal certainty.

With the exception of seconded employees who remain employed by their foreign employers, Swiss employers are obliged to register all employees with the statutory social security institutions.

Third-country nationals who do not have a long-term residence permit are subject to tax at source and must, therefore, be registered with the tax authorities. It is then the employer's responsibility to deduct the amount of tax each month from the employee's wage and pay the sum to the tax authorities.

The new Federal Act on Illegal Employment facilitates the payment of social security contributions for smaller employed jobs, while also containing new measures and more severe penalties to prevent and combat illegal employment. One provision that remains unchanged for both the employer and foreign employee is that everyone (whether in paid or unpaid employment) requires a permit.

Noncompliance with the minimum salary requirements and other terms of employment customary to a particular region or sector of industry is investigated mainly by the cantonal immigration authorities or, in some sectors, by offices established mainly for this purpose. Employers found not to comply with the legal requirements may be fined or blacklisted and may not receive any further work permits for foreign workers for a period of up to five years.

Executives, specialists and other qualified employees will be admitted if no suitable candidate is found in the local market. Qualified employee mainly means a person with a degree from a university or higher education institution and several years of professional experience. Depending on the profession or field of specialization, other people with special training and several years of professional work experience may also be admitted if this is in the economic interest of the region.

Besides professional qualifications, the applicant is also required to fulfill certain other criteria, which would facilitate long-term professional and social integration. These include professional and social adaptability, knowledge of a national language, and age.

The Swiss authorities examine the applicant's qualifications based on their resume, education certificates and references. Applicants must submit copies of original documents, including a translation if the original documents are not in German, French, Italian, English or Spanish.

If an applicant comes from a nation whose education system or system of professional training greatly differs from that of Switzerland, it is useful for the immigration authorities if the documents are submitted containing additional information on the institution and the length and content of the education or training course. Documents that may be helpful include a resume and education certificates showing which exams were taken and the results of these.

Exceptions to the admittance requirements may be granted in specific situations. The following is a partial list of the most frequent exceptions:

• Employment pursuant to cooperation agreements/projects, i.e., joint ventures
• Service and guarantee work for products from the country of origin
• Temporary duties as part of large projects for companies with their headquarters in Switzerland (international assignments)
• Pursuit of special mandated practical training and further education with professional associations and international business enterprises
• Transfer of executives or specialists within a multinational company or pursuant to reciprocity agreements
• Employment in certain professions where it is difficult to recruit in the labor market
• Highly qualified scientists with a degree obtained in Switzerland in areas or sectors in which there is a lack of potential labor
• Certain employment following the conclusion of a person's studies

Family members of Swiss nationals and persons with a long-term residence permit do not require authorization for self-employment. However, family members of other third-country nationals staying in Switzerland require a permit.

Third-country nationals may only be admitted for employment if they have suitable accommodation and health insurance covering them in accordance with statutory requirements.

A work and residence permit is issued if an employment contract or a written confirmation of employment has been submitted that is valid throughout Switzerland. The permit is not bound to a canton, an employer or any particular activity. Permit holders enjoy full geographical and professional mobility. Permission is not needed to change jobs, and it is only necessary to register with the communal authorities when moving to a new address. The validity of these permits is determined by the duration of the employment contract.