Agreement of June 21, 1999, between the Swiss Confederation on the one hand, and the European Community and its Member States, on the other hand, on the free movement of persons (FMOPA) - Entry and Exit (FZA)

The contracting parties shall admit onto their territory the nationals of the other contracting parties, their family members as defined in Art. 3 of this annex, as well as posted workers as defined in Art. 17 of this annex, upon simple presentation of a valid identity card or passport. No entry visa or equivalent requirement may be imposed, except for family members and posted workers as mentioned in Art. 17 of this annex, who do not possess the nationality of a contracting party. The concerned contracting party shall provide all facilities necessary for these individuals to obtain the required visas.

The contracting parties recognize the right of the nationals of the contracting parties, their family members as defined in Art. 3 of this annex, and posted workers as defined in Art. 17 of this annex, to leave their territory upon simple presentation of a valid identity card or passport. The contracting parties cannot impose any exit visa or equivalent requirement on the nationals of the other contracting parties. The contracting parties shall issue or renew for their nationals, in accordance with their legislation, an identity card or a passport specifying, in particular, their nationality. The passport must be valid for at least all the contracting parties and for countries in direct transit between them. When the passport is the only valid document for leaving the country, its period of validity cannot be less than five years.

Without prejudice to the provisions of the transitional period set out in Art. 10 of this agreement and in Chap. VII of this annex, nationals of a contracting party have the right to reside and engage in an economic activity on the territory of the other contracting party according to the modalities provided in Chap. II to IV. This right is verified by the issuance of a residence permit or a specific one for cross-border workers. Nationals of the contracting parties also have the right to go to another contracting party or to remain there after the end of employment lasting less than one year to seek employment and reside there for a reasonable period, which can be up to six months, allowing them to become aware of job offers corresponding to their professional qualifications and, if applicable, to take the necessary measures to be employed. Job seekers have the right, in the territory of the concerned contracting party, to receive the same assistance as that granted by the employment offices of that State to its own nationals. They may be excluded from social assistance during the duration of this stay.

Nationals of the contracting parties not engaging in an economic activity in the host State and who do not benefit from a right of residence under other provisions of this agreement have, provided they meet the prerequisites in Chap. V, a right of residence. This right is verified by the issuance of a residence permit.

The residence or specific permit granted to nationals of the contracting parties is issued and renewed free of charge or against the payment of a sum not exceeding the fees and charges required for the issuance of identity cards to nationals. The contracting parties shall take necessary measures to simplify formalities and procedures to the maximum extent for obtaining these documents.

The contracting parties may require nationals of other contracting parties to report their presence in the territory.

Family members of a national of a contracting party who has a right of residence have the right to settle with them. The employed worker must provide accommodation for their family, considered normal for national employed workers in the region where they are employed, without causing discrimination between national workers and workers from the other contracting party.

Family members, regardless of their nationality, include: a. the spouse and their descendants under 21 years of age or dependents; b. their ascendants and those of the spouse who are dependents; c. in the case of a student, their spouse and dependent children. The contracting parties promote the admission of any family member who does not benefit from the provisions of this paragraph under a), b), and c) if they are dependent on or live, in the countries of origin, with the national of a contracting party.

For the issuance of a residence permit to family members of a national of a contracting party, the contracting parties may only require the documents listed below: a. the document under which they entered the territory; b. a document issued by the competent authority of the state of origin or provenance proving their family ties; c. for dependent persons, a document issued by the competent authority of the state of origin or provenance certifying that they are dependent on the person referred to in para. 1 or that they live with them in that state.

The validity of the residence permit issued to a family member is the same as that issued to the person on whom they depend.

The spouse and children under 21 years of age or dependents of a person with a right of residence, regardless of their nationality, have the right to access economic activity.

Children of a national of a contracting party, whether or not employed, or who have exercised economic activity on the territory of the other contracting party are admitted to general education courses, apprenticeships, and vocational training under the same conditions as nationals of the host state, provided these children reside on its territory. The contracting parties encourage initiatives allowing these children to pursue the aforementioned courses under the best conditions.

Citizens of a contracting party and their family members have the right to remain on the territory of another contracting party after the end of their economic activity. In accordance with Art. 16 of the agreement, reference is made to Regulation (EEC) No. 1251/70 (OJ No. L 142, 1970, p. 24) and Directive 75/34/EEC (OJ No. L 14, 1975, p. 10).

The rights granted by the provisions of this agreement may only be restricted by measures justified on grounds of public order, public security, and public health.

In accordance with Art. 16 of the agreement, reference is made to Directives 64/221/EEC (OJ No. 56, 1964, p. 850), 72/194/EEC (OJ No. L 121, 1972, p. 32), and 75/35/EEC (OJ No. L 14, 1975, p. 10).

A national of a contracting party exercising gainful employment may be denied the right to occupy a position in public administration that is related to the exercise of public authority and intended to safeguard the general interests of the State or other public entities.

The contracting parties collaborate within the EURES network (EURopean Employment Services), particularly in the area of job matching and balancing of employment offers and requests, as well as in the exchange of information relating to the labor market situation and the conditions of living and working.

An employed worker who is a national of one contracting party (hereinafter referred to as an employed worker) who occupies a position with a duration of one year or more with an employer in the host state shall receive a residence permit with a duration of at least five years from the date of issuance. It is automatically renewed for at least five years. At the first renewal, its validity may be limited, but not for less than one year, if its holder has been involuntarily unemployed for more than twelve consecutive months.

An employed worker who occupies a position with a duration of more than three months but less than one year with an employer in the host state shall receive a residence permit valid for the duration specified in the contract. An employed worker who occupies a position with a duration not exceeding three months does not need a residence permit.

For the issuance of residence permits, the contracting parties may only require the worker to present the following documents: a) the document under which they entered the territory; b) a declaration of commitment from the employer or a work certificate.

The residence permit is valid throughout the entire territory of the issuing state.

Interruptions in residence not exceeding six consecutive months as well as absences due to military obligations do not affect the validity of the residence permit.

A valid residence permit cannot be withdrawn from an employed worker solely on the grounds that they no longer hold a job, whether due to temporary incapacity to work resulting from illness or accident, or due to duly certified involuntary unemployment by the competent employment office.

The completion of formalities related to obtaining the residence permit cannot impede the immediate commencement of employment contracts concluded by applicants.

An employed cross-border worker is a national of one contracting party who resides in the territory of one contracting party and carries out a salaried activity in the territory of the other contracting party, returning to their domicile in principle each day, or at least once a week.

Cross-border workers do not need a residence permit. However, the competent authority of the State of employment may issue the employed cross-border worker with a specific permit for at least five years or for the duration of their employment if it is more than three months and less than a year. It is extended for at least five years provided that the cross-border worker provides proof that they are engaged in an economic activity.

The specific permit is valid throughout the entire territory of the State that issued it.

Salaried workers have the right to professional and geographical mobility throughout the entire territory of the host State.

Professional mobility includes changing employers, jobs, professions, and transitioning from salaried employment to self-employment.

Geographical mobility includes changing the place of work and residence.

A salaried worker who is a national of one contracting party cannot, on the territory of the other contracting party, be treated differently due to their nationality compared to national salaried workers regarding conditions of employment and work, notably concerning remuneration, termination, and professional reintegration or reemployment if they become unemployed.

The salaried worker and their family members referred to in Art. 3 of this annex benefit from the same fiscal and social advantages as national salaried workers and their family members.

They also benefit, on the same basis and under the same conditions as national salaried workers, from education in vocational schools and rehabilitation or reeducation centers.

Any clause in a collective or individual agreement or other collective regulations concerning access to employment, employment, remuneration, and other working and dismissal conditions is null and void insofar as it provides or allows discriminatory conditions against non-national salaried workers who are nationals of the contracting parties.

A salaried worker who is a national of one contracting party, employed on the territory of the other contracting party, benefits from equal treatment concerning membership in trade unions and the exercise of trade union rights, including the right to vote and access to administrative or leadership positions in a trade union; they may be excluded from participation in the management of public law entities and from holding a public law office. Furthermore, they have eligibility rights to the employee representation bodies within the enterprise. These provisions do not affect the laws or regulations in the host state that grant more extensive rights to salaried workers from the other contracting party.

Without prejudice to the provisions of Art. 26 of this annex, a salaried worker who is a national of one contracting party, employed on the territory of the other contracting party, benefits from all rights and advantages granted to national salaried workers regarding housing, including access to ownership of the housing they need. This worker, like nationals, can register in the region where they are employed on housing applicant lists in places where such lists are maintained, and they benefit from the advantages and priorities that result from this. Their family remaining in the state of origin is considered, for this purpose, as a resident of that region, to the extent that national workers benefit from a similar presumption.

A national of one contracting party wishing to establish themselves in the territory of another contracting party for the purpose of pursuing a self-employed activity (hereinafter referred to as self-employed) shall be granted a residence permit for a duration of at least five years from the date of issuance, provided they present evidence to the competent national authorities that they are established or wish to establish themselves for such purpose.

The residence permit is automatically extended for at least five years, provided the self-employed person presents evidence to the competent national authorities that they engage in economic self-employment.

In issuing residence permits, the contracting parties may only request the self-employed person to present: a) the document under which they entered the territory; b) the evidence referred to in paragraphs 1 and 2.

The residence permit is valid throughout the territory of the State that issued it.

Interruptions of residence not exceeding six consecutive months, as well as absences due to the fulfillment of military obligations, do not affect the validity of the residence permit.

A valid residence permit cannot be revoked from the individuals referred to in paragraph 1 solely on the ground that they no longer engage in any activity due to a temporary incapacity for work resulting from an illness or accident.

An independent cross-border worker is a national of a contracting party who resides in the territory of one contracting party and carries out a self-employed activity in the territory of the other contracting party, returning to their residence in principle each day, or at least once a week.

Independent cross-border workers do not need a residence permit. However, the competent authority of the concerned State may issue the independent cross-border worker a specific permit for a duration of at least five years, provided that they produce evidence to the competent national authorities that they are engaged or wish to engage in an independent activity. It is extended for at least five years as long as the cross-border worker provides proof that they are carrying out an independent activity.

The specific permit is valid throughout the entire territory of the State that issued it.

The self-employed person has the right to professional and geographical mobility throughout the territory of the host State.

Professional mobility includes changing professions and transitioning from self-employment to salaried employment. Geographical mobility includes changing the place of work and residence.

The self-employed person receives in the host country, with regard to access to and the exercise of self-employed activity, treatment no less favorable than that accorded to its own nationals.

The provisions of Art. 9 of the present Annex are applicable, mutatis mutandis, to the self-employed persons referred to in this chapter.

A self-employed individual may be denied the right to engage in an activity that participates, even on an occasional basis, in the exercise of public authority.

Prohibited in the context of the provision of services, according to Art. 5 of this agreement: a) any restriction on a cross-border service provision in the territory of a contracting party not exceeding 90 days of actual work per calendar year. b) any restriction related to entry and residence in the cases referred to in Art. 5 para. 2 of this agreement with respect to i) nationals of the Member States of the European Community or of Switzerland who are service providers and are established in the territory of one of the contracting parties, other than that of the recipient of services; ii) employed workers, regardless of their nationality, of a service provider integrated into the regular labor market of a contracting party and who are detached for the provision of a service in the territory of another contracting party, without prejudice to Art. 1.

The provisions of Art. 17 of this annex apply to companies that are constituted in accordance with the legislation of a Member State of the European Community or Switzerland and have their statutory seat, central administration, or principal place of business in the territory of a contracting party.

A service provider who has the right or has been authorized to provide a service may, for the execution of their service, temporarily carry out their activity in the State where the service is provided under the same conditions that this State imposes on its own nationals, in accordance with the provisions of this annex and Annexes II and III.

Persons referred to in Art. 17, point b) of this annex who have the right to provide a service do not need a residence permit for stays of 90 days or less. The documents referred to in Art. 1, under which these persons have entered the territory, cover their stay.

Persons referred to in Art. 17, point b) of this annex who have the right to provide a service for a period exceeding 90 days, or who have been authorized to provide a service, receive a residence permit for a duration equal to that of the provision of service, to certify this right.

The right of residence extends to the entire territory of Switzerland or the concerned Member State of the European Community.

For the issuance of residence permits, the contracting parties may only request from the persons referred to in Art. 17, point b) of this annex: a) the document under which they have entered the territory; b) proof that they are providing or wish to provide a service.

The total duration of a service provision referred to in Art. 17, point (a), of this annex, whether it is a continuous provision or successive provisions, cannot exceed 90 days of actual work per calendar year.

The provisions of para. 1 do not prejudice either the fulfillment of the service provider's legal obligations regarding the guarantee obligation towards the service recipient or cases of force majeure.

Activities that participate, even on an occasional basis, in the exercise of public authority in the concerned contracting party are exempt from the application of the provisions of Articles 17 and 19 of this annex.

The provisions of Articles 17 and 19 of this annex, as well as the measures taken pursuant to them, do not prejudice the applicability of legislative, regulatory, and administrative provisions that stipulate the application of working and employment conditions to workers posted in the framework of a service provision. Pursuant to Article 16 of the present agreement, reference is made to Directive 96/71/EC of December 16, 1996 (OJ No L 18, 1997, p. 1) concerning the posting of workers in the framework of service provision.

The provisions of Articles 17, point a), and 19 of this annex do not prejudice the applicability of existing legislative, regulatory, and administrative provisions in each contracting party at the time of the entry into force of this agreement with respect to i) the activities of temporary work agencies and interim work; ii) financial services whose operation requires prior authorization on the territory of a contracting party and whose provider is subject to prudential supervision by public authorities of that contracting party.

The provisions of Articles 17, point a), and 19 of this annex do not prejudice the applicability of legislative, regulatory, and administrative provisions of each contracting party concerning the provision of services of 90 days or less of actual work, justified by compelling reasons related to a general interest.

The recipient of services referred to in Art. 5, para. 3, of this agreement does not need a residence permit for stays of three months or less. For stays exceeding three months, the recipient of services receives a residence permit for the duration equal to that of the services. They may be excluded from social assistance during their stay.

The residence permit is valid for the entire territory of the State that issued it.

A person who is a national of a contracting party and is not engaged in economic activity in the State of residence and who does not enjoy a right of residence under other provisions of this agreement shall receive a residence permit of at least five years’ duration, provided that they prove to the competent national authorities that they and their family members have: a) sufficient financial resources so as not to require social assistance during their stay; b) health insurance covering all risks. The contracting parties may, when deemed necessary, request the revalidation of the residence permit after the first two years of residence.

Financial resources are considered sufficient when they exceed the amount below which nationals, having regard to their personal situation and, where applicable, to that of their family members, may claim assistance benefits. When this condition cannot be fulfilled, the applicant's financial resources are considered sufficient if they exceed the level of the minimum social security pension paid by the host State.

Persons who have held a job for less than a year in the territory of a contracting party may reside there, provided they meet the conditions set out in paragraph 1 of this Article. Unemployment benefits to which they are entitled under the provisions of national legislation, possibly supplemented by the provisions of Annex II, are to be regarded as financial resources for the purposes of paragraph 1 (a) and 2 of this Article.

A residence permit, limited to the duration of training or one year if the training exceeds one year, is granted to a student who does not have a right of residence in the territory of the other contracting party on the basis of another provision of this agreement and who, by declaration or, at the student’s choice, by any other means at least equivalent, assures the competent national authority of having sufficient financial resources so that they, their spouse, and their dependent children do not seek social assistance from the host State during their stay, and provided that they are enrolled in an accredited institution to primarily pursue vocational training and have health insurance covering all risks. This agreement does not regulate access to vocational training or the support provided for the maintenance of students covered by this Article.

The residence permit is automatically extended for at least five years, as long as the admission conditions continue to be met. For the student, the residence permit is extended annually for a duration corresponding to the remaining length of the training.

Interruptions of residence not exceeding six consecutive months as well as absences due to fulfilling military obligations do not affect the validity of the residence permit.

The residence permit is valid for the entire territory of the State that issued it.

The right of residence remains as long as the beneficiaries of this right meet the conditions set out in paragraph 1.

A national of a contracting party who has a right of residence and who establishes their primary residence in the host State enjoys the same rights as a national of that State in the field of real estate acquisition. They may establish their primary residence in the host State at any time, following national rules, regardless of the duration of their employment. Departure from the host State does not entail any obligation to dispose of real estate.

A national of a contracting party who has a right of residence but does not establish their primary residence in the host State enjoys the same rights as a national of that State concerning the acquisition of real estate used for economic activities; these rights do not entail any obligation to dispose of property upon departure from the host State. They may also be authorized to acquire a secondary residence or a holiday home. For this category of nationals, the present agreement does not affect the existing rules concerning pure capital investment and the trading of undeveloped land and housing.

A cross-border commuter enjoys the same rights as a national of the host State regarding the acquisition of real estate used for economic activities and a secondary residence; these rights do not entail any obligation to dispose of property upon departure from the host State. They may also be authorized to acquire a holiday home. For this category of nationals, the present agreement does not affect the existing rules in the host State concerning pure capital investment and the trading of undeveloped land and housing.

When the restrictions provided for in Art. 10 of this Agreement are applied, the provisions contained in this Chapter supplement, or respectively replace, the other provisions of this Annex.

When the restrictions provided for in Art. 10 of this Agreement are applied, the exercise of an economic activity is subject to the issuance of a residence and/or work permit.

The residence permit of an employed worker with a contract of employment for a duration of less than one year is extended to a total duration of less than 12 months, provided that the employed worker presents to the competent national authorities proof that he or she can engage in an economic activity. A new residence permit is issued provided that the employed worker submits proof that he or she can engage in an economic activity and that the quantitative limits set out in Art. 10 of this agreement have not been reached. There is no obligation to leave the country between two employment contracts in accordance with Art. 24 of this annex.

During the period referred to in Art. 10, para. 2b, 2c, 4c, and 4d of this agreement, a contracting party may require a written contract or a contract offer for the issuance of an initial residence permit. (3) a) Persons previously employed in temporary positions on the territory of the host State for at least 30 months automatically have the right to take on employment of indefinite duration. Any exhaustion of the number of guaranteed residence permits cannot be enforced against them. b) Persons previously employed in seasonal work on the territory of the host State for a total duration of no less than 50 months during the last 15 years and who do not meet the conditions for entitlement to a residence permit under the provisions of point a) of this paragraph automatically have the right to take on employment of indefinite duration.

An employed frontier worker is a national of a contracting party who has their habitual residence in the border areas of Switzerland or its neighboring States and who engages in gainful employment in the border areas of the other contracting party, returning to their primary residence in principle each day, or at least once a week. For the purposes of this agreement, border areas are defined as the areas specified in the agreements concluded between Switzerland and its neighboring States concerning border traffic.

The specific title is valid for the entire border area of the State that issued it.

An employed worker who, on the effective date of this agreement, held a residence permit of at least one year and who has left the host country, is entitled to preferential access within the quota for their residence permit within six years following their departure, provided that they produce evidence that they can engage in an economic activity.

A cross-border worker is entitled to a new specific permit within six years following the end of their previous activity of an uninterrupted duration of three years, subject to a review of the remuneration and working conditions if they are employed during the two years following the entry into force of the agreement, and provided that they submit to the competent national authorities evidence that they can engage in an economic activity.

Young people who have left the territory of a contracting party after residing there for at least five years before the age of 21 will have the right, for a period of four years, to return there and engage in an economic activity.

An employed worker holding a residence permit of less than one year has, during the 12 months following the start of their employment, the right to professional and geographical mobility. Transitioning from employed work to self-employment is possible, provided that the provisions of Art. 10 of this agreement are respected.

Specific permits issued to cross-border employed workers grant a right to professional and geographical mobility within all the border zones of Switzerland or its neighboring States.

A national of a contracting party wishing to establish themselves in the territory of another contracting party in order to engage in a self-employed activity (hereinafter referred to as "self-employed person") is granted a residence permit valid for a period of six months. They are granted a residence permit valid for at least five years, provided that they present evidence to the competent national authorities before the end of the six-month period that they are engaging in a self-employed activity. This six-month period may, if necessary, be extended by a maximum of two months if the individual has a genuine opportunity to provide this evidence.

The independent cross-border worker is a national of a contracting party who has their regular domicile in the border areas of Switzerland or its neighboring states and who pursues a self-employed activity in the border areas of the other contracting party, returning to their main residence in principle each day, or at least once a week. The border areas, as per this agreement, are those areas defined by the agreements concluded between Switzerland and its neighboring states concerning cross-border mobility.

A national of a contracting party wishing to work as an independent cross-border worker in the border areas of Switzerland or its neighboring states receives a specific permit prior, valid for a period of six months. They receive a specific permit with a minimum duration of five years provided they furnish, before the end of the 6-month period, proof to the competent national authorities that they are pursuing an independent activity. This 6-month period may, if necessary, be extended by a maximum of two months if they have a genuine chance of presenting this proof.

The specific permit is valid for the entire border area of the State that issued it.

A self-employed person who has held a residence permit for at least five years and who has left the host State has the right to a new residence permit within six years of his departure, provided that he has already worked in the host country for an uninterrupted period of three years and can provide evidence to the competent national authorities that he can engage in economic activity.

The self-employed cross-border worker is entitled to a new specific permit within six years following the end of their previous activity of an uninterrupted duration of four years, provided that they can substantiate to the competent national authorities that they can engage in economic activity.

Young persons who have left the territory of a contracting party after having resided there for at least five years before reaching the age of 21 shall have the right for a period of four years to return there and engage in economic activity.

The specific permits issued to self-employed cross-border workers grant a right to professional and geographical mobility within the border areas of Switzerland or its neighboring States. Residence permits (for cross-border workers: the specific permits) of a preliminary duration of six months only grant the right to geographical mobility.

The contracting parties agree to apply, among themselves, in the field of the coordination of social security systems, the legal acts of the European Union referred to in Section A of this annex, as amended by this annex, or rules equivalent thereto.

The term “Member State(s)” appearing in the legal acts referred to in Section A of this annex is deemed to apply, in addition to the States covered by the relevant legal acts of the European Union, to Switzerland.

For the purposes of the application of this Annex, the contracting parties shall consider the legal acts of the European Union referred to in Section B of this Annex.

For the purposes of the application of this Annex, the contracting parties shall take note of the legal acts of the European Union referred to in Section C of this Annex.

Special provisions concerning the transitional unemployment insurance regime applicable to nationals of certain Member States of the European Union possessing a Swiss residence permit of less than one year, Swiss allowances for dependents, and benefits from occupational retirement, survivors, and disability pensions are set forth in Protocol I attached to this annex.

Protocol I is an integral part of this annex.

The modalities relating to the protection of rights acquired by individuals under this agreement due to the withdrawal of the United Kingdom from the European Union are provided for in Protocol II attached to this annex.

Protocol II is an integral part of this annex.

For the purposes of this protocol, the following terms shall be understood as: a) "withdrawal agreement": the agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community; b) "citizens' rights agreement": the agreement between the United Kingdom of Great Britain and Northern Ireland and the Swiss Confederation concerning citizens' rights following the United Kingdom's withdrawal from the European Union and the end of the applicability of the agreement on the free movement of persons; c) "covered states": the Member States of the Union and Switzerland; d) "transition period": the transition period referred to in Art. 126 of the withdrawal agreement; e) the definitions contained in Art. 1 of Regulation (EC) No 883/2004 and Art. 1 of Regulation (EC) No 987/2009 shall apply.

For the purposes of this protocol, all references to Member States and the competent authorities of the Member States in the provisions of Union law made applicable by this protocol shall be understood to include the United Kingdom and its competent authorities.

This protocol applies to the following persons: a) nationals of the United Kingdom who are subject to the legislation of one of the states covered at the end of the transition period, as well as their family members and survivors; b) nationals of the United Kingdom who are residing in one of the states covered and are subject to the legislation of the United Kingdom at the end of the transition period, as well as their family members and survivors; c) persons not covered under point a) or b), but who are nationals of the United Kingdom exercising a salaried or non-salaried activity in one or more of the states covered at the end of the transition period and who, under Title II of Regulation (EC) No 883/2004, are subject to the legislation of the United Kingdom, as well as their family members and survivors; d) stateless persons and refugees residing in one of the states covered or in the United Kingdom, who are in one of the situations described in points a) to c), as well as their family members and survivors.

The persons referred to in para. 1 are covered as long as they continue to be without interruption in one of the situations outlined in said paragraph concerning both one of the states covered and the United Kingdom.

This protocol also applies to nationals of the United Kingdom who are not or are no longer in one of the situations outlined in para. 1 of this article, but who fall under Art. 10 of the Withdrawal Agreement or Art. 10 of the Agreement on citizens' rights, as well as to their family members and survivors.

The persons referred to in para. 3 are covered as long as they continue to benefit from the right to reside in one of the states covered pursuant to Art. 13 of the Withdrawal Agreement or Art. 12 of the Agreement on citizens' rights, or the right to work in their State of employment pursuant to Art. 24 or 25 of the Withdrawal Agreement or Art. 20 of the Agreement on citizens' rights.

Where this article refers to family members and survivors, these persons are covered by this protocol only to the extent that they derive their rights and obligations in this capacity under Regulation (EC) No 883/2004.

The rules and objectives set forth in Art. 8 of the agreement and in the annex of the agreement on the free movement of persons, the Regulations (EC) No 883/2004 and (EC) No 987/2009 of the European Parliament and the Council apply to the persons covered by this protocol.

The covered States shall take into consideration the decisions and recommendations of the Administrative Commission for the Coordination of Social Security Systems, established at the European Commission by Regulation (EC) No 883/2004 (hereinafter referred to as "Administrative Commission"), the list of which appears in sections B and C of this annex.

The following rules apply in the situations listed below, within the limits outlined in this article and insofar as they concern persons who are not or are no longer covered by Article 2: a) Nationals of the United Kingdom, as well as stateless persons and refugees residing in the United Kingdom who were subject to the legislation of one of the covered States before the end of the transition period, as well as their family members and survivors, are covered by this protocol for the purposes of utilizing and aggregating periods of insurance, employment, self-employment, or residence, including the rights and obligations arising from these periods in accordance with Regulation (EC) No 883/2004; for the purposes of aggregating periods, periods completed before and after the end of the transition period are taken into account in accordance with Regulation (EC) No 883/2004; b) The rules set out in Articles 20 and 27 of Regulation (EC) No 883/2004 continue to apply to nationals of the United Kingdom, as well as stateless persons and refugees residing in the United Kingdom who, before the end of the transition period, had requested authorization to receive planned medical treatment in accordance with Regulation (EC) No 883/2004, and this until the end of the treatment. The corresponding reimbursement procedures also apply, even after the end of the treatment. These individuals and those accompanying them enjoy the right to enter and exit the State of treatment in accordance with Article 14 of the withdrawal agreement, mutatis mutandis, and Article 13 of the citizens' rights agreement, mutatis mutandis; c) The rules set out in Articles 19 and 27 of Regulation (EC) No 883/2004 continue to apply to nationals of the United Kingdom, as well as stateless persons and refugees residing in the United Kingdom covered by Regulation (EC) No 883/2004 and who, at the end of the transition period, are staying in one of the covered States or the United Kingdom, and this until the end of their stay. The corresponding reimbursement procedures also apply, even after the end of the stay or the treatment; d) The rules set out in Articles 67, 68, and 69 of Regulation (EC) No 883/2004 continue to apply, as long as the conditions are met, to family benefits to which nationals of the United Kingdom, as well as stateless persons and refugees residing in the United Kingdom who are subject to the legislation of the United Kingdom and have family members residing in one of the covered States at the end of the transition period, are entitled to at the end of the transition period; e) In the situations outlined in paragraph d) of this section, for any person who has rights as a family member at the end of the transition period under Regulation (EC) No 883/2004, such as derivative rights for sickness benefits in kind, said Regulation and the corresponding provisions of Regulation (EC) No 987/2009 continue to apply as long as the conditions set forth therein are met.

The provisions of Title III, Chapter 1, of Regulation (EC) No 883/2004 relating to sickness benefits apply to persons benefiting from the benefits referred to in paragraph 1, point a) of this article. This paragraph applies mutatis mutandis in relation to family benefits based on Articles 67, 68, and 69 of Regulation (EC) No 883/2004.

The provisions of Regulations (EC) No 883/2004 and (EC) No 987/2009 on reimbursement, recovery, and compensation continue to apply with respect to events that, insofar as they concern individuals not covered by Art. 2: a) occurred before the end of the transition period, or b) occur after the end of the transition period and concern individuals who were covered by Art. 2 or 4 when the event occurred.

Notwithstanding paragraph 3, references to Regulations (EC) No 883/2004 and (EC) No 987/2009 or to provisions thereof in this protocol shall be understood as references to acts or provisions incorporated into the agreement, as applicable on the last day of the transition period. If Regulations (EC) No 883/2004 and (EC) No 987/2009 are amended or replaced after the end of the transition period, references to these regulations in this protocol shall be understood as referring to those regulations as amended or replaced, in accordance with the acts listed in Annex I, Part II, of the withdrawal agreement, concerning the Union, and in Annex I, Part II, of the citizens’ rights agreement, concerning Switzerland. For the purposes of this protocol, Regulations (EC) No 883/2004 and (EC) No 987/2009 shall be understood as including the adaptations listed in Annex I, Part III, of the withdrawal agreement, concerning the Union, and in Annex I, Part III, of the citizens’ rights agreement, concerning Switzerland. For the purposes of this protocol, the modifications and adaptations referred to in paragraphs 2 and 3 shall take effect on the day following the day on which the corresponding modifications and adaptations of Annex I of the withdrawal agreement or Annex I of the citizens’ rights agreement take effect, whichever date is the latest.

The objective of this agreement, in favor of nationals of the Member States of the European Community and of Switzerland, is: a) to grant the right of entry, residence, access to salaried employment, establishment as a self-employed person, and the right to remain on the territory of the contracting parties; b) to facilitate the provision of services on the territory of the contracting parties, particularly by liberalizing the provision of short-term services; c) to grant the right of entry and residence, on the territory of the contracting parties, to persons without an economic activity in the host country; d) to grant the same living, employment, and working conditions as those accorded to nationals.

Nationals of one contracting party who legally reside in the territory of another contracting party shall not, in the application and in accordance with the provisions of Annexes I, II, and III of this agreement, be discriminated against on the basis of their nationality.

The right of entry for nationals of one contracting party into the territory of another contracting party is guaranteed in accordance with the provisions set out in Annex I.

The right of residence and access to economic activity is guaranteed subject to the provisions of Art. 10 and in accordance with the provisions of Annex I.

Without prejudice to other specific agreements related to the provision of services between the contracting parties (including the agreement on public procurement to the extent that it covers the provision of services), a service provider, including companies pursuant to the provisions of Annex I, shall have the right to provide a service for a performance on the territory of the other contracting party not exceeding 90 days of actual work per calendar year.

A service provider shall have the right to entry and stay on the territory of the other contracting party: a) if the service provider has the right to provide a service according to para. 1 or pursuant to the provisions of an agreement referred to in para. 1; b) or, where the conditions mentioned under point a) are not met, if the authorization to provide a service has been granted by the competent authorities of the concerned contracting party.

Natural persons who are nationals of a Member State of the European Community or Switzerland, who enter the territory of one of the contracting parties solely as recipients of services, shall have the right of entry and stay.

The rights referred to in this article are guaranteed in accordance with the provisions of Annexes I, II, and III. The quantitative limits of Art. 10 shall not be applicable to the persons referred to in this article.

The right of residence in the territory of a contracting party is guaranteed to persons not engaged in economic activity according to the provisions of Annex I relating to non-active persons.

The contracting parties, in accordance with Annex I, regulate notably the rights mentioned below related to the free movement of persons: a) the right to equal treatment with nationals regarding access to economic activities and their exercise as well as living, employment, and working conditions; b) the right to professional and geographical mobility, allowing nationals of the contracting parties to move freely within the territory of the host state and to pursue the profession of their choice; c) the right to remain on the territory of a contracting party after an economic activity has ended; d) the right of family members to reside, regardless of their nationality; e) the right for family members to engage in economic activities, regardless of their nationality; f) the right to acquire real estate to the extent it is related to the exercise of the rights conferred by this agreement; g) during the transitional period, the right after the end of an economic activity or a stay on the territory of a contracting party, to return in order to pursue an economic activity as well as the right to convert a temporary residence permit into a permanent one.

The contracting parties shall regulate, in accordance with Annex II, the coordination of social security systems with the aim of ensuring, in particular: a) equal treatment; b) the determination of the applicable legislation; c) the totalization, for the establishment and maintenance of entitlement to benefits, as well as for the calculation of these benefits, of all periods considered by the various national legislations; d) the payment of benefits to persons residing in the territory of the contracting parties; e) mutual assistance and administrative cooperation between the authorities and institutions.

In order to facilitate access to and the exercise of employed and self-employed activities, as well as the provision of services for nationals of the Member States of the European Community and Switzerland, the contracting parties shall take the necessary measures, in accordance with Annex III, concerning the mutual recognition of diplomas, certificates, and other titles and the coordination of the legislative, regulatory, and administrative provisions of the contracting parties regarding access to employed and self-employed activities and their exercise, as well as the provision of services.

For five years following the entry into force of the agreement, Switzerland may maintain quantitative limits on access to economic activity for the following two categories of residence: for a period longer than four months and less than one year, and for a period equal to or greater than one year. Stays of less than four months are not limited. From the beginning of the sixth year, all quantitative limits on nationals of the European Community Member States will be lifted.

(1a) Switzerland may maintain until 31 May 2007, quantitative limits regarding access for employed workers occupying a job in Switzerland and self-employed individuals who are nationals of the Czech Republic, the Republic of Estonia, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic for the two categories of residence mentioned above: for a period longer than four months and less than one year, and for a period equal to or greater than one year. Stays of less than four months are not limited. Before the end of the aforementioned transitional period, the Joint Committee shall examine the functioning of the transitional period applied to nationals of the new Member States based on a report from Switzerland. Following this examination, and no later than the end of the specified period, Switzerland shall notify the Joint Committee if it will continue to apply quantitative limits to workers employed in Switzerland. Switzerland may continue to apply such measures until 31 May 2009. In the absence of notification, the transitional period ends on 31 May 2007. At the end of the transitional period defined in this paragraph, all quantitative limits applicable to nationals of the Czech Republic, the Republic of Estonia, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic are removed. These Member States are entitled to introduce the same quantitative limits against Swiss nationals for the same periods.

(1b) Until the end of the second year from the entry into force of the protocol to this agreement regarding the participation, as Contracting Parties, of the Republic of Bulgaria and Romania, Switzerland may maintain quantitative limits on access for employed workers occupying a job in Switzerland and self-employed individuals who are nationals of the Republic of Bulgaria and Romania, for the two categories of residence mentioned above: for a period longer than four months and less than one year, and for a period equal to or greater than one year. Stays of less than four months are not limited. Before the end of the specified period, the Joint Committee shall examine, based on a report prepared by Switzerland, the functioning of the transitional period applied to nationals of the new Member States. Following this examination and at the latest by the end of the specified period, Switzerland shall notify the Joint Committee if it will continue to apply quantitative limits to workers employed in Switzerland. Switzerland may continue to apply such measures until the end of the fifth year from the entry into force of the aforementioned protocol. In the absence of notification, the transitional period ends at the end of the two-year period referred to in para. 1. At the end of the transitional period defined in this paragraph, all quantitative limits applicable to nationals of the Republic of Bulgaria and Romania are removed. These Member States are entitled to introduce the same quantitative limits against Swiss nationals for the same periods.

(1c) Until the end of the second year from the entry into force of the protocol to this agreement regarding the participation, as a Contracting Party, of the Republic of Croatia, Switzerland may maintain quantitative limits on the access of employed workers occupying a job in Switzerland and self-employed individuals who are nationals of Croatia, for the two categories of residence stated: for a period longer than four months and less than one year, and for a period equal to or greater than one year. Stays of less than four months are not subject to quantitative limits. Before the end of the specified period, the Joint Committee shall review, based on a report by Switzerland, the functioning of the transitional period applied to nationals of Croatia. After this review, and no later than the end of the specified period, Switzerland shall notify the Joint Committee if it will continue to apply quantitative limits to workers employed in Switzerland. Switzerland may continue such measures until the end of the fifth year from the entry into force of the aforementioned protocol. In the absence of notification, the transitional period ends at the end of the two-year period referred to in the first subparagraph. At the end of the transitional period defined in this paragraph, all quantitative limits applicable to nationals of Croatia are abolished. Croatia is entitled to introduce the same quantitative limits against Swiss nationals for the same periods.

The Contracting Parties may, for a maximum period of two years, maintain controls over the priority of the worker integrated into the regular labor market and the conditions of salary and employment applicable to the nationals of the other Contracting Party, including service providers referred to in Art. 5. Before the end of the first year, the Joint Committee shall assess the necessity of maintaining these restrictions. It may reduce the maximum period of two years. Service providers liberalized by a specific agreement on service provision between the Contracting Parties (including the agreement on certain aspects of government procurement to the extent it covers service provision) are not subject to the control of the priority of the worker integrated into the regular labor market.

(2a) Switzerland and the Czech Republic, the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic may maintain, until 31 May 2007, controls over the priority of the worker integrated into the regular labor market and the conditions of salary and employment applicable to nationals of the relevant Contracting Party, regarding workers from one of these Contracting Parties employed on their territory. The same controls may be maintained for service providers in the following four sectors: auxiliary services related to agriculture and landscape planning; construction including related fields; security and investigation activities; cleaning activities (NACE codes 01.41; 45.1 to 4; 74.60; 74.70 respectively), referred to in Art. 5, para. 1, of the agreement. During the transitional periods mentioned in para. 1a, 2a, 3a, and 4a, Switzerland shall give preference to workers who are nationals of the new Member States over workers who are nationals of non-EU and non-EFTA countries concerning access to the labor market. Service providers liberalized by a specific agreement on service provision between the Contracting Parties (including the agreement on some aspects relating to public procurement provided they cover service provision) are not subject to the control of the priority of the worker integrated into the regular labor market. For the same period, qualification requirements may be maintained, for residence permits of less than four months and for service providers in the four mentioned sectors, referred to in Art. 5, para. 1, of the agreement. Before 31 May 2007, the Joint Committee shall examine the functioning of the transitional measures provided for in this paragraph based on a report prepared by each of the Contracting Parties applying them. Following this review, and no later than 31 May 2007, the Contracting Party that has applied the transitional measures provided for in this paragraph and has notified the Joint Committee of its intention to continue applying them may continue to do so until 31 May 2009. In the absence of notification, the transitional period ends on 31 May 2007. At the end of the transitional period defined in this paragraph, all the restrictions mentioned above in this paragraph are removed.

(2b) Switzerland, the Republic of Bulgaria, and Romania can, until the end of the second year from the entry into force of the protocol to this agreement regarding the participation, as Contracting Parties, of the Republic of Bulgaria and Romania, maintain controls over the priority of the worker integrated into the regular labor market and the conditions of salary and employment applicable to the nationals of the other relevant Contracting Party, regarding workers from one of these Contracting Parties employed on their territory. The same controls may be maintained for service providers, referred to in Art. 5, para. 1, of this agreement, in the four sectors indicated: services in the area of horticulture; construction and related branches; activities in the security and industrial cleaning field (NACE codes 01.41; 45.1 to 4; 74.60 and 74.70 respectively). During the transitional periods mentioned in paras. 1b, 2b, 3b, and 4c, Switzerland gives preference to workers who are nationals of the new Member States over workers who are nationals of non-EU and non-EFTA countries concerning access to its labor market. Service providers liberalized by an agreement specific to service provision between the Contracting Parties (including the agreement on certain aspects relating to public procurement as far as it covers service provision) are not subject to control of the priority of the worker integrated into the regular labor market. For the same period, qualification conditions may be maintained for residence permits of a duration less than four months and for service providers referred to in Art. 5, para. 1, of this agreement, in the four mentioned sectors. Within two years of the entry into force of the protocol to this agreement regarding the participation, as Contracting Parties, of the Republic of Bulgaria and Romania, the Joint Committee shall examine the functioning of the transitional measures provided in this paragraph based on a report established by each of the Contracting Parties applying them. Following this examination, and no later than two years after the entry into force of the aforementioned protocol, the Contracting Party that has applied the transitional measures provided in this paragraph and has notified the Joint Committee of its intention to continue applying them may do so until the end of the fifth year from the entry into force of the aforementioned protocol. In the absence of notification, the transitional period ends at the end of the two-year period mentioned in para. 1. At the end of the transitional period defined in this paragraph, all the restrictions mentioned above in this paragraph are abolished.

(2c) Switzerland and Croatia may, until the end of the second year from the entry into force of the protocol to this agreement regarding the participation, as a Contracting Party, of the Republic of Croatia, maintain controls over the priority of the worker integrated into the regular labor market and the conditions of salary and employment applicable to the nationals of the other relevant Contracting Party, regarding workers from one of these Contracting Parties employed on their territory. The same controls may be maintained for service providers, referred to in Art. 5, para. 1, of this agreement, in the four sectors indicated: services in the area of horticulture; construction and related branches; activities in the security and industrial cleaning field (NACE codes 01.41; 45.1 to 4; 74.60 and 74.70 respectively). During the transitional periods mentioned in paras. 1c, 2c, 3c, and 4d, Switzerland gives preference to workers who are nationals of Croatia over those who are nationals of non-EU and non-EFTA countries concerning access to its labor market. Service providers liberalized by an agreement specific to service provision between the Contracting Parties (including the agreement on certain aspects relating to public procurement as far as it covers service provision) are not subject to control of the priority of the worker integrated into the regular labor market. For the same period, qualification conditions may be maintained for residence permits shorter than four months and for service providers, referred to in Art. 5, para. 1, of this agreement, in the four mentioned sectors. Within two years of the entry into force of the protocol to this agreement regarding the participation, as a Contracting Party, of the Republic of Croatia, the Joint Committee shall examine the functioning of the transitional measures provided in this paragraph based on a report established by each of the Contracting Parties applying them. After this examination, and no later than two years after the entry into force of the aforementioned protocol, the Contracting Party that has applied the transitional measures provided in this paragraph and has notified the Joint Committee of its intention to continue applying them may do so until the end of the fifth year from the entry into force of the aforementioned protocol. In the absence of notification, the transitional period ends at the end of the two-year period referred to in the first subparagraph. At the end of the transitional period defined in this paragraph, all the restrictions referred to above in this paragraph are abolished.

From the entry into force of this agreement and for a period up to the end of the fifth year, Switzerland reserves, within its global quotas, the following minimums of new residence permits for employed and self-employed workers from the European Community: residence permits of a duration equal to or greater than one year: 15,000 per year; residence permits for a duration longer than four months and less than one year: 115,500 per year.

(3a) From the entry into force of the protocol to this agreement concerning the participation, as Contracting Parties, of the new Member States mentioned below, until the end of the period described in para. 1a, Switzerland reserves, on an annual basis (pro rata temporis), within its global quotas for third countries, for employed workers occupying a job in Switzerland and for self-employed individuals who are nationals of the Czech Republic, the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic, a minimum number of new residence permits according to the following schedule

Until the end of Number of permits of a duration equal to or greater than a year Number of permits of a duration longer than four months and less than a year

31 May 2005 900 9,000

31 May 2006 1,300 12,400

31 May 2007 1,700 15,800

31 May 2008 2,200 19,200

31 May 2009 2,600 22,600.

(3b) From the entry into force of the protocol to this agreement regarding the participation, as Contracting Parties, of the Republic of Bulgaria and Romania and until the end of the period described in para. 1b, Switzerland reserves, on an annual basis (pro rata temporis) and within its global quotas for third countries, a minimum number of new residence permits for employed workers occupying a job in Switzerland and for self-employed individuals, who are nationals of these new Member States, according to the following schedule

Until the end of Number of residence permits of a duration equal to or greater than a year Number of residence permits of a duration longer than four months and less than a year

first year 362 3,620

second year 523 4,987

third year 684 6,355

fourth year 885 7,722

fifth year 1,046 9,090.

(3c) From the entry into force of the protocol to this agreement concerning the participation, as a Contracting Party, of the Republic of Croatia and until the end of the period described in para. 1c, Switzerland reserves on an annual basis (pro rata temporis) and within its global quotas for third countries, a minimum number of new residence permits for employed workers occupying a job in Switzerland and for self-employed individuals, who are nationals of Croatia, according to the following schedule

Until the end of Number of residence permits of a duration equal to or greater than a year Number of residence permits of a duration longer than four months and less than a year

first year 54 543

second year 78 748

third year 103 953

fourth year 133 1,158

fifth year 250 2,000.

(3d) If Switzerland and/or Croatia have applied the measures described in paras. 1c, 2c, and 3c to employed workers occupying a job on their territory and in case of serious disruptions or threat of serious disruptions to their labor markets, they notify these circumstances to the Joint Committee before the end of the period described in para. 1c. Based on this notification, the Joint Committee shall decide whether the notifying country may continue to apply the transitional measures. In the case of a favorable opinion by the Joint Committee, the notifying country may continue to apply to employed workers occupying a job on its territory the measures described in paras. 1c, 2c, and 3c until the end of the seventh year from the entry into force of the aforementioned protocol. In this case, the annual number of residence permits referred to in para. 1c is as follows

Until the end of Number of residence permits of a duration equal to or greater than a year Number of residence permits of a duration longer than four months and less than a year

sixth year 260 2,100

seventh year 300 2,300.

Notwithstanding the provisions of para. 3, the following arrangements are agreed between the Contracting Parties: If after five years and up to 12 years from the entry into force of the agreement, for any given year, the number of new residence permits of one of the categories referred to in para. 1 delivered to employed workers and self-employed individuals from the European Community exceeds the average of the previous three years by more than 10%, Switzerland may, unilaterally, for the following year, limit the number of new residence permits for this category for employed workers and self-employed individuals from the European Community to the average of the previous three years plus 5%. The number may be limited to the same level the following year. Notwithstanding the provisions of the previous paragraph, the number of new residence permits delivered to employed workers or self-employed individuals from the European Community may not be limited to less than 15,000 per year for new residence permits of a duration equal to or greater than one year and to 115,500 per year for residence permits of a duration longer than four months and less than a year.

(4a) At the end of the period described in para. 1a and in the present paragraph, and until 12 years after the entry into force of the agreement, the provisions of Art. 10, para. 4, of the agreement are applicable. In the event of serious disruptions or the threat of serious disruptions to its labor market, Switzerland and each of the new Member States that have applied transitional measures notify these circumstances to the Joint Committee by 31 May 2009. In this case, the notifying country may continue to apply to employed workers occupying a job on its territory the measures described in paras. 1a, 2a, and 3a until 30 April 2011. In this case, the annual number of residence permits referred to in para. 1a is as follows

Until the end of Number of permits of a duration equal to or greater than a year Number of permits of a duration longer than four months and less than a year

31 May 2010 2,800 26,000

30 April 2011 3,000 29,000.

(4b) When Malta experiences or anticipates disruptions in its labor market that seriously threaten the living standards or employment levels in a given region or profession, and decides to invoke the provisions contained in Section 2 "Free Movement of Persons" of Annex XI of the Act of Accession, the restrictive measures taken by Malta against the rest of the EU Member States may also be applied to Switzerland. In this case, Switzerland has the right to take equivalent reciprocal measures towards Malta. Malta and Switzerland can use this procedure until 30 April 2011.

(4c) At the end of the period described in para. 1b and this paragraph, and until the end of the tenth year from the entry into force of the protocol to this agreement regarding the participation, as Contracting Parties, of the Republic of Bulgaria and Romania, the provisions of Art. 10, para. 4, of the present agreement apply to nationals of these new Member States. In the event of serious disruptions or threats of serious disruptions to their labor markets, Switzerland and each of the new Member States having applied transitional measures notify these circumstances to the Joint Committee before the end of the five-year transitional period specified in para. 2b, subpara. 2. In this case, the notifying country may continue to apply to employed workers occupying a job on its territory the measures described in paras. 1b, 2b, and 3b until the end of the seventh year from the entry into force of the aforementioned protocol. In this case, the annual number of residence permits referred to in para. 1b is as follows

Until the end of Number of residence permits of a duration equal to or greater than a year Number of residence permits of a duration longer than four months and less than a year

sixth year 1,126 10,457

seventh year 1,207 11,664.

(4d) At the end of the period described in paras. 1c and 3d, and until the end of the tenth year from the entry into force of the protocol to this agreement concerning the participation, as a Contracting Party, of the Republic of Croatia, the following arrangements are applicable: if, for a reference year, the number of new residence permits of one of the categories referred to in para. 1c delivered to employed workers and self-employed individuals of Croatia exceeds by more than 10% the average of the three years preceding the reference year, Switzerland may unilaterally limit, for the application year, the number of new residence permits of a duration equal to or greater than one year for employed workers and self-employed individuals of Croatia to 5% more than the average of the three years preceding the application year and the number of new residence permits of a duration longer than four months and less than one year to 10% more than the average of the three years preceding the application year. The number may be limited to the same level the following application year. By way of derogation from the previous subparagraph, the following modalities apply at the end of the sixth and seventh reference years: if the number of new residence permits of one of the categories referred to in paragraph 1c delivered to employed workers and self-employed individuals of Croatia exceeds by more than 10% the corresponding number for the year preceding the reference year, Switzerland may unilaterally limit, for the application year, the number of new residence permits of a duration equal to or greater than one year for employed workers and self-employed individuals of Croatia to 5% more than the average of the three years preceding the application year and the number of new residence permits of a duration longer than four months and less than one year to 10% more than the average of the three years preceding the application year. The number may be limited to the same level the following application year.

(4e) For the purposes of applying para. 4d: 1) the term "reference year" means a given year counted from the first day of the month of entry into force of the protocol; 2) the term "application year" means the year following the reference year.

The transitional provisions of paras. 1 to 4, and particularly those of para. 2 concerning the priority of the worker integrated into the regular labor market and the control of salary and employment conditions, do not apply to employed workers and self-employed individuals who, at the time of the entry into force of this agreement, are authorized to carry out an economic activity on the territory of the Contracting Parties. These workers enjoy geographical and professional mobility. Holders of a residence permit of less than one year have the right to renew their residence permit; exhaustion of the quantitative limits is not opposable to them. Holders of a residence permit of a duration equal to or greater than one year have the automatic right to extend their residence permit; as a result, these employed workers and self-employed individuals will, from the entry into force of the agreement, enjoy rights related to the free movement of persons established by the basic provisions of this agreement and especially its Art. 7.

(5a) The transitional provisions of paras. 1a, 2a, 3a, 4a, and 4b, and particularly those of para. 2a concerning the priority of workers integrated into the regular labor market and the control of salary and employment conditions, do not apply to employed workers and self-employed individuals who, at the time of the entry into force of the protocol to this agreement regarding the participation, as Contracting Parties, of the new Member States mentioned in the aforementioned paragraphs, are authorized to carry out economic activity on the territory of the Contracting Parties. These workers particularly enjoy geographical and professional mobility. Holders of a residence permit of less than one year have the right to renew their residence permit; exhaustion of the quantitative limits is not opposable to them. Holders of a residence permit of a duration equal to or greater than one year have the automatic right to extend their residence permit; as a result, these workers and self-employed individuals will, from the entry into force of the agreement, enjoy rights related to the free movement of persons established by the basic provisions of this agreement and, notably, its Art. 7.

(5b) The transitional provisions of paras. 1b, 2b, 3b, and 4c, and particularly those of para. 2b concerning the priority of workers integrated into the regular labor market and the controls of salary and employment conditions, do not apply to employed workers and self-employed individuals who, at the time of the entry into force of the protocol to this agreement concerning the participation, as Contracting Parties, of the Republic of Bulgaria and Romania, are authorized to carry out economic activity on the territory of the Contracting Parties. These workers enjoy geographical and professional mobility. Holders of a residence permit of a duration less than one year have the right to renew their residence permit; exceeding the quantitative limits is not opposable to them. Holders of a residence permit of a duration equal to or greater than one year have the automatic right to extend their residence permit. Consequently, these employed workers and self-employed individuals will enjoy, from the entry into force of the aforementioned protocol, the rights related to the free movement of persons established by the basic provisions of this agreement, particularly its Art. 7.

(5c) The transitional provisions of paras. 1c, 2c, 3c, and 4d, and particularly those of para. 2c concerning the priority of workers integrated into the regular labor market and the controls of salary and employment conditions, do not apply to employed workers and self-employed individuals who, at the time of the entry into force of the protocol to this agreement concerning the participation, as a Contracting Party, of the Republic of Croatia, are authorized to conduct economic activity on the territory of the Contracting Parties. These workers enjoy geographical and professional mobility. Holders of a residence permit of less than one year have the right to renew their residence permit; exceeding the quantitative limits is not opposable to them. Holders of a residence permit of a duration equal to or greater than one year have an automatic right to the extension of their residence permit. As a result, these employed workers and self-employed individuals, from the entry into force of the aforementioned protocol, will enjoy the rights connected to the free movement of people established in the basic provisions of this agreement, particularly its Art. 7.

Switzerland regularly and swiftly communicates to the Joint Committee useful statistics and information, including implementation measures of para. 2. Each of the Contracting Parties may request a review of the situation within the Joint Committee.

No quantitative limitation applies to cross-border workers.

The transitional provisions regarding social security and the repayment of unemployment insurance contributions are settled in the Protocol to Annex II.

The individuals subject to this Agreement have the right to appeal regarding the application of the provisions of this Agreement to the competent authorities.

Appeals must be processed within a reasonable timeframe.

Decisions rendered on appeal, or the absence of a decision within a reasonable period, allow the individuals subject to this Agreement to appeal to the competent national judicial authority.

The present agreement does not prejudice more favorable national provisions that may exist for both nationals of the contracting parties and their family members.

The contracting parties undertake not to adopt any new restrictive measures against nationals of the other party in the areas covered by this agreement.

A Joint Committee is established, composed of representatives of the contracting parties, which is responsible for the management and proper implementation of the agreement. To this end, it formulates recommendations. It takes decisions in the cases provided for in the agreement. The Joint Committee makes decisions by mutual agreement.

In the event of serious economic or social difficulties, the Joint Committee shall meet at the request of one of the contracting parties to examine appropriate measures to remedy the situation. The Joint Committee may decide on measures to be taken within a period of 60 days from the date of the request. This period may be extended by the Joint Committee. These measures are limited in scope and duration to what is strictly necessary to remedy the situation. Measures that least disrupt the functioning of this agreement must be chosen.

For the proper execution of the agreement, the contracting parties shall regularly exchange information and, at the request of one of them, consult each other within the Joint Committee.

The Joint Committee meets as required and at least once a year. Each party may request the convening of a meeting. The Joint Committee shall meet within 15 days of the request referred to in para. 2.

The Joint Committee shall establish its rules of procedure, which shall include, among other provisions, the modalities for convening meetings, the designation of its chairman, and the definition of the latter's mandate.

The Joint Committee may decide to establish any working group or experts necessary to assist it in the performance of its duties.

The annexes and protocols of this agreement are an integral part of it. The final act contains the declarations.

In order to achieve the objectives pursued by this agreement, the contracting parties shall take all necessary measures to ensure that rights and obligations equivalent to those contained in the legal acts of the European Community, to which reference is made, are applied in their relations.

To the extent that the application of this agreement involves concepts of Community law, relevant jurisprudence from the Court of Justice of the European Communities before the date of its signature shall be taken into account. Jurisprudence subsequent to the signing date of this agreement shall be communicated to Switzerland. To ensure the proper functioning of the agreement, at the request of a contracting party, the Joint Committee shall determine the implications of this jurisprudence.

As soon as a contracting party has initiated the process of adopting a draft amendment to its internal legislation, or as soon as there is a change in the case law of bodies whose decisions are not subject to judicial appeal of internal law in a field governed by this agreement, the contracting party concerned shall inform the other party through the Joint Committee.

The Joint Committee shall conduct an exchange of views on the implications that such an amendment would have for the proper functioning of the agreement.

If a contracting party wishes to propose a revision of this agreement, it shall submit a proposal to this effect to the Joint Committee. The modification of this agreement shall enter into force following the completion of the respective internal procedures, except for amendments to Annexes II and III, which shall be decided by the Joint Committee and can enter into force immediately after such decision.

The contracting parties may submit any dispute concerning the interpretation or application of this agreement to the Joint Committee. The Joint Committee may resolve the dispute. All useful information necessary for a thorough examination of the situation to find an acceptable solution is provided to the Joint Committee. To this end, the Joint Committee examines all possibilities to ensure the proper functioning of this agreement.

Unless otherwise provided by Annex II, the bilateral social security agreements between Switzerland and the Member States of the European Community are suspended upon the entry into force of this agreement, insofar as the same subject matter is governed by this agreement.

The provisions of the bilateral agreements between Switzerland and the Member States of the European Community regarding double taxation are not affected by the provisions of this agreement. In particular, the provisions of this agreement must not affect the definition of a cross-border worker according to the double taxation agreements.

No provision of this agreement can be interpreted in a manner that prevents the contracting parties from making a distinction, in the application of the relevant provisions of their tax legislation, between taxpayers who are not in comparable situations, particularly with regard to their place of residence.

No provision of this agreement hinders the adoption or application by the contracting parties of a measure intended to ensure the effective taxation, payment, and collection of taxes or to prevent tax evasion in accordance with the provisions of the national tax legislation of a contracting party or the agreements aimed at avoiding double taxation binding Switzerland, on the one hand, and one or more Member States of the European Community, on the other hand, or other tax arrangements.

Notwithstanding the provisions of Arts. 20 and 21, the present agreement does not affect the agreements between Switzerland, on the one hand, and one or more Member States of the European Community, on the other hand, such as agreements regarding individuals, economic agents, cross-border cooperation, or minor cross-border traffic, insofar as they are compatible with the present agreement.

In the event of incompatibility between these agreements and the present agreement, the latter shall prevail.

In the event of termination or non-renewal, the acquired rights of individuals shall not be affected. The contracting parties shall mutually agree on the status of rights currently being acquired.

The present agreement applies, on the one hand, to the territory of Switzerland, and on the other hand, to the territories where the Treaty establishing the European Community is applicable and under the conditions stipulated by the said Treaty.

This agreement shall be ratified or approved by the contracting parties according to their respective procedures. It shall enter into force on the first day of the second month following the last notification of the deposit of instruments of ratification or approval of all seven of the following agreements: – agreement on the free movement of persons, – agreement on air transport, – agreement on the carriage of goods and passengers by rail and road, – agreement on trade in agricultural products, – agreement on mutual recognition in relation to conformity assessment, – agreement on certain aspects of public procurement, – agreement on scientific and technological cooperation.

This agreement is concluded for an initial period of seven years. It shall be renewed for an indefinite period unless the European Community or Switzerland notifies the other contracting party to the contrary, prior to the expiration of the initial period. In the event of notification, the provisions of para. 4 shall apply.

The European Community or Switzerland may terminate this agreement by notifying its decision to the other contracting party. In the event of notification, the provisions of para. 4 shall apply.

The seven agreements mentioned in para. 1 shall cease to apply six months after the receipt of the notification regarding non-renewal referred to in para. 2 or the termination referred to in para. 3. Done at Luxembourg, on the twenty-first of June in the year one thousand nine hundred and ninety-nine, in duplicate in the German, English, Danish, Spanish, Finnish, French, Greek, Italian, Dutch, Portuguese, and Swedish languages, each of these texts being equally authentic.