Swiss Federal Council proposes stronger measures to combat undeclared work
The Swiss Federal Council has informed in a press release that it launched a public consultation on amendments to the Federal Act on Measures to Combat Undeclared Work (Bundesgesetz gegen die Schwarzarbeit, BGSA), proposing a range of measures to strengthen the detection and prevention of undeclared work and related forms of abuse. The consultation remains open until 16 October 2026.
The proposed reform aims to improve cooperation between cantonal enforcement authorities and cantonal commercial register, debt enforcement and bankruptcy offices. By facilitating information sharing between these authorities, the Federal Council seeks to enhance the detection of abuses involving corporate structures and insolvency proceedings. The proposal also implements a parliamentary motion calling for stronger enforcement tools under the existing legislative framework.
To support inspections conducted outside business premises, such as on construction sites, the draft would grant the competent enforcement authorities’ direct access to vehicle registration data held in the Federal Roads Office’s Information System on Vehicle Admissions (IVZ). This is intended to facilitate the identification of employers and employees through company vehicles encountered during inspections.
The legislative package also addresses a gap created by the Federal Act on the Transparency of Legal Persons and the Identification of Beneficial Owners, adopted in September 2025 that will enter into force on 1 October 2026. Under the proposal, authorities responsible for preventing and investigating insurance abuse, insurance fraud and undeclared work would be expressly authorised to report discrepancies to the future transparency register.
The proposed amendments form part of the Federal Council’s broader efforts to strengthen enforcement against economic abuse by improving inter-agency cooperation, expanding investigative powers and enhancing the effectiveness of existing transparency mechanisms.