The Regulation (EC) No 883/2004 of the European Parliament and of the Council is part of the Agreement on the Free Movement of Persons (AFMP) between Switzerland and the European Union (EU). This Regulation is listed in Annex II to the AFMP. Switzerland therefore participates in the EU-wide coordination of social security systems, including Unemployment Insurance. This Regulation sets out, in particular, which country is responsible for performing services if an unemployed person finds themself in a cross-border situation (for example if a cross-border commuter is unemployed).
On 22 April 2026, the delegations of the European Council and the Parliament reached a provisional agreement on the revision of Regulation 883/2004 as part of the trilogue procedure. The revision proposed by the European Commission in 2016 is intended to modernise European coordination rules. Currently, if a cross-border commuter is unemployed, it is the country of residence (for example, one of Switzerland’s neighbouring countries) that is responsible for paying unemployment benefits and monitoring efforts to find work. In this context, the country of employment (for example Switzerland) reimburses the country of residence up to a maximum of 5 months of paid benefits at that country’s rates.
Under one of the core changes of the proposed revision to Regulation 883/2004, the country of last employment – and not the country of residence as before – would be responsible for paying unemployment benefits to cross-border commuters. The revision would abolish the current system whereby the country of last employment reimburses the country of residence.
Switzerland is not directly involved in the revision matters at EU level, but is following the revision of Regulation 883/2004 closely. The European Union’s institutional process will run for some time yet before the draft is formally adopted. Any amended regulation does not directly apply in Switzerland. The question of whether the legislation will be adopted by Switzerland will have to be reviewed in due course.