Employer of Record & PEO in Switzerland | INS Global

PEO in Switzerland

Hire Globally, Pay Locally, Expand Effortlessly

Expanding globally doesn’t have to be a long process with complicated obstacles. INS Global is an experienced partner to companies wanting human resources services in over 100 countries worldwide. With a PEO you can reduce expenses and waiting time, setting up in a market in as little time as a few days. 

An Employer of Record (EOR) in Switzerland acts as a legal entity through which you can bring over your staff team and also hire new local talent quickly and smoothly. Partnering with an EOR in Switzerland also gives you access to local talent pools, cost-effective recruitment methods, and legal expertise. 

Similar to an EOR, a PEO (Professional Employer Organization) is also a third-party organization that can be your expansion partner for any market you’re looking to enter. A PEO handles all administrative tasks such as payroll, contract management, and HR services so that your employees remain compliant with every aspect of local labor laws.

PEO in Switzerland - Summary

What are the Benefits of Expanding with a PEO?

Legal Security and Familiarity with Local Laws

Instead of trying to understand local employment and labor regulations on your own, a PEO has a professional legal team who can help ensure that every step of the expansion process is safe and legally compliant. 

Cut Down on Unnecessary Expenses

Making mistakes in a new market can be disastrous, and often result in having to pay legal fees or fines. A PEO not only provides shortcuts for faster expansion but also guarantees that you avoid any costly errors 

Increased Opportunity for Company Growth

A PEO allows you to focus on market goals while it takes care of all other processes, including recruitment, payroll, and HR services.

Accelerated Market Entry

Traditional company incorporation can take up to a year before the company is up and running. A PEO can have operations set up and running as normal in under a week. 

One Point of Contact for All Your Needs

From recruitment to contract termination, a PEO provides HR support at every level, all through a single platform. 

PEO vs Company Incorporation: What’s the Difference?

While company incorporation may be a tried-and-tested method for global expansion, it takes a great deal of time and energy and doesn’t offer solutions for any potentially time-sensitive issues. Having a PEO allows you to begin operations in a new market without having to spend months setting up a separate legal entity. 

A PEO:   

  • Expedites the expansion schedule 
  • Saves on costs and overheads   
  • Reduces the risk of legal errors  
  • Improves connections with local businesses 
testimonial from Manuel Ramos


Manuel Ramos


Managing Director

We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately. 


How Does A PEO In Switzerland Work?

We can facilitate your company or employment needs using 4 simple steps: 

  1. We meet with you to discuss your vision and formulate a plan for your specific situation 
  2. Through our PEO you can bring in staff immediately and begin operations in Switzerland 
  3. While you adjust to the new market, we handle all the administrative and legal tasks around recruitment and payroll  
  4. Your company can move swiftly towards its target goals in the Swiss market while we take care of HR and keep you updated on local labor laws. 

The Difference Between a PEO and an EOR

While a PEO and EOR are often mentioned in the same article, the two service types are not identical. Neither are the services that they provide or the liability coverage they give. Understanding the differences will help you to make the right decision when choosing a partner. 

  • A PEO and EOR are both companies that provide HR services to employees of client companies. These services include but are not limited to, payroll, tax compliance, etc. 
  • One of the main distinctions is that an EOR acts as the official employer and can hire employees on behalf of other companies. An EOR also becomes legally responsible for any employee they hire. 
  • The contract between a PEO and EOR is also different. In a PEO agreement, the contract is made between the original company and the employee. In an EOR agreement, the contract is directed by the company but officially made between the Employer Of Record and the employee. 

Labor Law in Switzerland

Employment Contracts

  • It’s generally considered a good business practice to have employment contracts in writing, including all necessary details such as salary amount, vacation days, termination guidelines, etc 
  • If there are CBAs (collective bargaining agreements) in place, then the contract will need to adhere to those regulations. 
  • Contracts in Switzerland can be probationary, fixed-term, or indefinite-term. 
  • A probation period is typically one month. During that time the contract may be terminated with seven days’ notice. 
  • Notice periods outside of the probation month range from 1-3 months, depending on seniority. Severance pay is not government mandated unless the employee is over 50 years old and has been with the company for more than 20 years.

Working Hours

  • The maximum hours in a workweek are 45 hours for industrial or office staff, and technical or sales employees. For employees in other sectors, the maximum is 50 hours. 
  • Overtime is compensated at an additional 25% above regular wages. The daily overtime limit is 2 hours, or 170 hours annually (for a 45 hr work week) or 140 hours (for a 50 hr work week) 
  • Employers required to work on Sundays or during public holidays are renumerated at 50% of normal wages.


  • National day in Switzerland is August 1st and is celebrated nationwide. Other public holidays are determined by Swiss cantons (states) and can vary according to the region’s religious affiliation or local practices. 
  • Full-time employees receive paid leave on public holidays, while part-time or hourly employees are compensated according to the rate specified in their contract.

Sick leave

  • Sick leave in Switzerland increases with every year the employee spends with the company. During the first year of employment, the employee receives 3 weeks of medical leave which goes up to 9 weeks in the third year. 
  • Any sick leave that lasts longer than 3 days requires a medical certificate. 
  • Sick leave compensation is covered by state health insurance. 

Maternity/Paternity Leave

  • Maternity leave is 14 weeks after birth. Employers cannot dismiss an employee for the first 16 weeks after birth. 
  • Employees who have worked for a minimum of 3 months before taking this leave will receive 80% of their salary during maternity leave. 
  • Fathers receive two weeks of paid paternity leave.

Tax Law in Switzerland

  • Corporate tax is 8.5%. VAT is 7.7%. 
  • Employers are expected to handle their employee’s social security tax: 
  • Old age, veteran, and disability insurance: 10.6%. Employer and employee each pay half. 
  • Workplace accident insurance: averages 0.17%. Covered by the employer. 
  • Family compensation: 0.3-3.5%. Covered by the employer. 
  • Unemployment: 2.2%. Employer and employee pay half. 
  • Medical insurance is covered by the employee.  
  • Income tax is taxed at a progressive rate from 0.77 to 11.5% 
PEO in Switzerland


Discover More Solutions in Switzerland


No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.