Employer of Record (EOR) Switzerland

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Simple & Compliant Hiring with Globaine's Employer of Record (EOR)

Hire in Switzerland with Confidence 
Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in Switzerland is handled efficiently and in full compliance with local regulations.

Fast Time-To-Hire

Onboard employees in as little as 12 hours.

Cost-Efficient

The most affordable solution on the market, saving you time and money.

Compliant Contracts

We draft bilingual contracts compliant with Swiss labor law.

Global Reach, Local Expertise
Hire not just in Switzerland, but in over 180 countries through our global platform, allowing you to grow internationally without entity setup. Globaine’s team provides the local expertise you need to ensure every hire is compliant, efficient, and hassle-free.

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HIRING

in Switzerland

While Swiss law does not strictly mandate written employment contracts, having one is highly recommended to ensure clarity and protect both parties. For specific roles, such as fixed-term or part-time positions, a written contract is mandatory. Contracts should outline key terms, including job title, salary, working hours, and notice periods. For non-EU employees, additional documentation related to work permits and residency must be included.

A written contract is essential for employment types such as fixed-term agreements, part-time roles, and positions involving non-EU nationals. The contract should be finalized and signed before the employee’s start date to avoid disputes and ensure compliance with Swiss labor laws.

Salaries must be clearly stated in Swiss Francs (CHF) and usually specified as gross annual or monthly amounts. Employers should also detail any additional payments, such as bonuses, allowances, or overtime compensation. Swiss law requires transparency in payroll to avoid disputes.

Important clauses to include are:

  • Non-Compete: Defines post-employment restrictions, usually limited to one year and specific geographic areas.
  • Confidentiality: Protects sensitive company information during and after employment.
  • Probation Period: Typically ranges from 1 to 3 months, allowing both parties to assess suitability.
  • Remote Work: Conditions, allowances, and responsibilities for teleworking must be specified, including cost coverage for home office expenses.

ONBOARDING

in Switzerland

1. What are the key steps in employee onboarding in Switzerland?

Onboarding involves several key steps:

  • Social Security Registration: Employees must be registered with the Swiss social security system (AHV/AVS).
  • Tax Documentation: Ensure tax details are properly documented, including source tax withholding for foreign workers.
  • Work Permit Verification: For non-EU nationals, confirm the validity of residence and work permits.
  • Bank Account Setup: Employees should open a Swiss bank account for salary payments.

2. When are pre-hire medical checks required for employment in Switzerland?

Pre-hire medical checks are not mandatory for most roles. However, specific industries, such as healthcare or construction, may require medical exams to ensure the employee can perform essential duties safely.

3. What documents are required for onboarding in Switzerland?

Essential documents include:

  • Valid identification (passport or Swiss ID)
  • Signed employment contract
  • Work and residence permits (for non-EU/EEA nationals)
  • Social security number (AHV/AVS) registration
  • Bank account details

PAYROLL

in Switzerland

Salaries in Switzerland are typically paid monthly, with bonuses or 13th-month salaries being customary in many industries. Payment cycles and additional compensation (like bonuses) should be outlined in the employment contract.

Employers must ensure remote workers are provided allowances for work-related expenses such as internet and electricity. These costs must be documented and are often tax-exempt if clearly defined in the contract.

Switzerland does not have a nationwide minimum wage. However, certain cantons (like Geneva and Neuchâtel) have established their own minimum wages. Employers must comply with cantonal regulations and collective labor agreements (CLAs).

Although not legally required, many Swiss companies offer a 13th-month salary as part of the standard compensation package, typically paid at the end of the year or split between June and December.

TAXES

in Switzerland

1. What are the income tax rates in Switzerland?

Switzerland uses a progressive tax system, with federal tax rates ranging from 0% to 11.5%. Cantonal and municipal taxes vary significantly, so the total tax burden depends on the employee’s place of residence.

2. How does the tax system apply to non-residents in Switzerland?

Non-residents working in Switzerland are subject to source tax (withholding tax) on Swiss income. The rates vary depending on the canton and marital status.

3. When should tax returns be submitted in Switzerland?

Annual tax returns are typically due by March 31st for the previous year. Extensions may be granted, but accurate and timely submissions are crucial to avoid penalties.

4. What social security contributions are required in Switzerland?

Employers contribute around 5.3% of an employee’s gross salary to social security (AHV/AVS). Employees contribute 5.3% as well, with both payments funding public pensions, disability insurance, and unemployment benefits.

LEAVE

in Switzerland

Swiss labor law mandates a minimum of four weeks of paid annual leave (20 working days) for employees. For employees under 20 years old, this increases to five weeks. Some cantonal or industry-specific agreements may offer additional leave.

Employees can generally use their leave after completing their probation period, which typically lasts one to three months, depending on the employment contract. Employers may have specific policies about when leave can be taken, often requiring coordination with the company’s operational needs.

  • Maternity Leave: Mothers receive 14 weeks of paid maternity leave at 80% of their salary, funded by the social insurance system. Maternity leave must start at least four weeks before the due date. Some cantons or employers may offer extended benefits.
  • Paternity Leave: Fathers are entitled to two weeks of paid paternity leave, also at 80% of their salary, to be taken within six months after the child’s birth.

Public holidays vary by canton. The only nationwide public holiday is Swiss National Day on August 1st. Depending on the canton, there can be 8 to 15 additional public holidays. Employers must ensure compliance with local regulations and consider these holidays when planning work schedules and leave.

BENEFITS

in Switzerland

1. What benefits are mandatory in Switzerland?

Mandatory benefits include:

  • Social Security Contributions (AHV/AVS): Covers pensions, disability, and survivors’ insurance.
  • Occupational Pension Plan (BVG/LPP): For employees earning more than CHF 21,510 per year.
  • Accident Insurance (UVG): Provides coverage for work-related and non-work-related accidents.
  • Maternity and Paternity Leave: Statutory paid leave as mentioned earlier.

2. How is the home office allowance structured in Switzerland?

While not legally mandated, many Swiss employers provide a home office allowance to cover additional costs such as internet, electricity, and equipment. This allowance must be clearly stated in the employment contract to ensure compliance with tax regulations.

3. When should meal allowances be provided in Switzerland?

Meal allowances are not legally required but are commonly offered by employers. Companies that provide meal vouchers or reimbursements typically follow guidelines ensuring these benefits are tax-exempt up to a certain limit, usually around CHF 180 per month.

4. What additional benefits are common in Switzerland?

Common additional benefits include:

  • Health Insurance Contributions: Employers may contribute to or fully cover private health insurance plans.
  • Travel and Transport Allowances: Reimbursements for commuting costs.
  • Training and Development Programs: Support for continued education or professional certifications.
    These competitive benefits help attract and retain top talent, especially in specialized industries.

TERMINATIONS

in Switzerland

The standard notice period in Switzerland varies depending on the employee’s length of service and is governed by both Swiss Code of Obligations and individual employment contracts:

  • During probation (usually 1–3 months): 7 days.
  • First year of employment: 1 month.
  • Years 2–9: 2 months.
  • 10+ years: 3 months.
    Notice periods may be modified by mutual agreement or collective bargaining agreements but must adhere to legal minimums.

Employers can terminate an employee without notice for just cause, which typically involves severe misconduct such as theft, violence, or gross negligence. The employer must act quickly—within two to three days of discovering the misconduct—to issue an immediate dismissal. Legal consultation is recommended to avoid wrongful termination claims.

There is no mandatory severance payment for standard terminations in Switzerland. However, employees over 50 years old with at least 20 years of service are entitled to a severance payment, typically equivalent to 2–8 months’ salary, depending on company policies and collective agreements. Additional severance may be negotiated individually or as part of a termination agreement.

Mutual termination agreements allow both parties to end the employment relationship amicably. These agreements often include negotiated terms such as severance payments, release from non-compete clauses, and reference letters. Clear documentation and legal counsel are crucial to avoid future disputes and ensure compliance with Swiss labor law.

FAQs

Globaine ensures compliance by managing all employment regulations, including payroll, social security, and tax obligations, aligned with Swiss labor laws and canton-specific rules.

Globaine’s EOR solution eliminates entity setup costs, reduces administrative overhead, and minimizes legal and operational risks, providing significant savings on both time and resources.

Globaine guarantees quick onboarding by utilizing a streamlined process that includes pre-established agreements, automated systems for document management, and a local expert team ready to onboard employees efficiently.

Yes, Globaine drafts bilingual, legally compliant contracts and manages terminations in accordance with Swiss federal and cantonal labor laws, ensuring seamless HR management.

Hiring without an EOR can lead to compliance issues, legal penalties, and administrative challenges. Globaine mitigates these risks by handling all local legal, tax, and HR responsibilities.

Employer of Record (EOR) Switzerland

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