Employer of Record in Switzerland (EOR in Switzerland)

Employer of Record in Switzerland (EOR in Switzerland)

Hire Globally, Pay Locally, Expand Effortlessly

Switzerland, known for its robust economy and strategic position in the heart of Europe, offers unparalleled opportunities for businesses looking to expand internationally. However, entering the Swiss market involves navigating a complex network of labor laws and tax regulations. An Employer of Record (EOR) in Switzerland can streamline this process, acting as your local partner to ensure a smooth market entry and ongoing compliance with all essential legal requirements

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Want to Have a Team in Switzerland TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

How an Employer of Record in Switzerland Jump Starts Operates in 3 Steps

Step 1 – Comprehensive Planning & Business Evaluation

Working with an EOR in Switzerland, such as INS Global, begins with a detailed review of your business objectives. This includes assessing the number of employees, their specific roles, and your timeline for expanding into the Swiss market. The EOR tailors its services to align with your unique needs, ensuring a smooth and efficient market entry.

Step 2 – Seamless Setup, Recruitment & Onboarding

Whether you’re forming a new team in Switzerland or relocating current employees, an EOR manages all critical legal processes. This includes handling visas, work permits, payroll, and contract management, ensuring full compliance with Swiss labor laws. Acting as your legal employer in Switzerland, the EOR simplifies the complexities and costs of establishing a local entity.

Step 3 – Ongoing HR Support & Compliance Oversight

Once your operations are established in Switzerland, an EOR takes charge of ongoing HR and payroll functions. This includes salary processing, managing employee benefits, and ensuring compliance with health insurance and social security contributions. The EOR serves as the HR liaison between you and your Swiss team, addressing administrative tasks and employee concerns, allowing you to focus on business growth.

Infographic | INS Global
Employer of Record in Switzerland (EOR in Switzerland)

Employer of Record in Switzerland (EOR in Switzerland) - Summary

The Advantages of a Swiss EOR On Your Business

Hassle-Free Market Entry

An EOR in Switzerland streamlines your entry into the market by managing intricate tax systems and labor laws, ensuring your compliance from day one.

Expert Compliance Management

Switzerland’s regulatory environment can be challenging, but EORs possess the expertise to keep your business in full alignment with local tax laws, labor regulations, and social security obligations.

Risk Mitigation and Legal Protection

As your legal employer in Switzerland, an EOR minimizes the risks associated with employment regulations, ensuring that your business remains fully compliant and protected from potential liabilities.

Concentration on Core Business Strategies

By outsourcing HR functions such as recruitment, payroll processing, and tax management to an EOR, you can focus on driving your core business activities and achieving strategic growth.

Cost-Efficient Operational Strategy

EOR services in Switzerland provide a cost-effective alternative to establishing a local subsidiary, particularly for smaller teams or temporary ventures, helping you avoid the significant costs of incorporation and ongoing administrative burdens.

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

5/5

Choosing Between an EOR and Company Incorporation in Switzerland

While establishing a subsidiary in Switzerland is a viable option, choosing an EOR offers distinct advantages:

  • Speed – Partnering with an EOR like INS Global allows for a quicker setup process in Switzerland, enabling swift staff recruitment and business initiation. In contrast, establishing a local subsidiary can take several months, while an EOR can have your team operational within weeks or even days.
  • Compliance – Both EORs and subsidiaries must adhere to Swiss tax laws and labor regulations. However, EORs bring specialized local knowledge to navigate these requirements efficiently, ensuring your business stays compliant without the need for in-house expertise.
  • Cost – For smaller teams or short-term projects, EOR services in Switzerland are generally more cost-effective than setting up a subsidiary. They help you avoid significant incorporation costs and ongoing administrative expenses. Larger organizations also benefit from the EOR’s ability to integrate seamlessly with global payroll systems.
  • Control – While setting up a subsidiary provides full control over HR, finances, and operations, EORs offer similar levels of oversight with the added advantage of reducing administrative burdens and associated liabilities.

5 Essential Factors for Selecting the Best Employer of Record in Switzerland

Choosing the right EOR in Switzerland is crucial for successful business expansion. Keep these 5 key factors in mind:

  • Established Reputation and Experience – Look for an EOR in Switzerland with a well-established reputation and a proven track record, such as INS Global. Positive client reviews and industry awards can indicate their reliability and expertise.
  • Comprehensive Services – Ensure the EOR in Switzerland offers a full range of services or can tailor their offerings to meet your specific needs. This could include visa and work permit assistance, payroll management, tax compliance, and navigating Switzerland’s intricate tax and labor laws.
  • Adaptability and Growth Support – Select an EOR in Switzerland that can scale its services in line with your business growth. They should be equipped to manage an expanding workforce and adapt to evolving business demands.
  • Effective Communication and Transparency – Choose an EOR in Switzerland known for clear and consistent communication. They should keep you updated on regulatory changes, deadlines, and any potential issues. A dedicated point of contact and accessible online tools are essential for easy access to critical information.
  • Clear and Competitive Pricing – Evaluate the pricing models of different EOR providers in Switzerland. Ensure their fees are transparent, competitive, and free from hidden charges. Consulting independent reviews can help you secure the best value for your investment.

Switzerland Labor Law Overview

  • Employment Contracts – In Switzerland, employment contracts are typically drafted in German, French, Italian, or English, depending on the region, and must clearly outline essential terms such as salary, benefits, working hours, termination clauses, and minimum wage requirements. While there is no federally mandated minimum wage, specific cantons like Geneva have introduced minimum wage laws. An EOR in Switzerland ensures that all contracts comply with the applicable local labor legislation, adapting to the linguistic and legal requirements of each canton.
  • Probationary Periods – Probation periods in Switzerland can last up to 3 months but can be extended to 6 months by mutual agreement between employer and employee. During this period, either party can terminate the contract with a shorter notice period. An EOR can assist in setting up probationary terms that meet legal requirements, offering you the flexibility to evaluate new hires effectively.
  • Working Hours – The standard workweek in Switzerland is generally 40 to 42 hours, depending on the industry and the specific canton. Swiss law also imposes strict limits on overtime, which must be compensated at a premium rate or with additional time off. An EOR helps monitor employee working hours, ensuring compliance with both federal and cantonal regulations, while also managing any required overtime compensation.
  • Paid Leave – Swiss employees are entitled to a range of paid leave benefits, including 4 weeks of annual leave (5 weeks for employees under 20), public holidays (which vary by canton), sick leave, maternity leave (at least 14 weeks), and paternity leave (2 weeks). Some cantons offer additional leave entitlements. An EOR manages all leave requests, ensuring that leave policies are administered in compliance with Swiss labor laws and that employees receive their rightful compensation.
  • Health Insurance and Social Security – In Switzerland, both employers and employees are required to contribute to health insurance and the Swiss social security system (AHV/AVS), which covers old-age, survivors, and disability insurance. Additional contributions may be required for unemployment insurance and occupational pension schemes (BVG/LPP). An EOR handles all these contributions as part of the payroll process, ensuring that your business meets all legal obligations and that employees are covered under the Swiss social security framework.
  • Severance Pay – Swiss law does not mandate severance pay in most cases, but it can be required under certain conditions, such as collective agreements or long-term employment. An EOR can provide guidance on severance pay practices, ensuring that any terminations are handled in full compliance with Swiss labor laws, including notice periods and any potential compensation agreements.

Navigating Switzerland’s labor laws can be complex, particularly given the variation in regulations across different cantons. Partnering with an EOR in Switzerland ensures that your business remains fully compliant with all relevant labor laws, protecting you from legal risks and allowing you to focus on expanding your operations.

Employer of Record in Switzerland (EOR in Switzerland)

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FAQs

An EOR ensures that your business remains compliant with all Swiss labor laws, including employment contracts, working hours, and employee benefits. They handle the complexities of local regulations, so you don’t have to worry about legal pitfalls.

Yes, an EOR in Switzerland can manage employment contracts in German, French, Italian, or English, depending on the region. They ensure that the contracts meet local legal standards, regardless of the language.

An EOR helps set up probationary periods in compliance with Swiss law, typically lasting up to 3 months but extendable to 6 months by mutual agreement. They handle all the legal documentation and termination processes if needed during this period.

An EOR monitors employee working hours to ensure compliance with Swiss labor laws, which include strict limits on overtime. They manage the compensation for overtime, whether through higher wages or compensatory time off, in accordance with legal requirements.

An EOR in Switzerland ensures that any employee terminations are handled in compliance with Swiss labor laws, including notice periods and, if applicable, severance pay. They provide guidance on legal grounds for termination and manage the necessary paperwork.

Yes, an EOR handles all contributions to the Swiss social security system, including health insurance, pensions, and unemployment insurance. They ensure that both employer and employee contributions are accurately calculated and submitted on time.

An EOR manages all aspects of paid leave, including annual leave, sick leave, and public holidays, which vary by canton. They ensure that employees receive their entitled benefits in compliance with Swiss labor laws.

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