Employer of Record Switzerland

• Quick, flexible, and easy entry into Switzerland in compliance with local employment laws
• Complete control over business development with your own team
• Good option for building up, managing, and supporting your distributors and key accounts by directly observing local developments and adjusting the strategy whenever necessary
• Using our comprehensive recruitment experience for international clients, we can form a local team that fits your corporate culture.
• Focusing on your core business instead of dealing with the time-consuming and complex local administrative tasks
• Allowing for easy market exit if necessary
• Integrating your employees into our team through motivational events and special meetings

When recruiting employees in Switzerland, it’s crucial to acknowledge the regional variations in spoken languages. While many Swiss candidates are proficient in multiple languages, it’s essential to clearly specify the required language for the role you’re seeking to fill. Once this is established, you’ll discover that Switzerland boasts a modest yet highly educated and skilled talent pool. Recruitment efforts in Switzerland primarily rely on job boards, corporate websites, networking, or newspaper advertisements to identify potential candidates.

Switzerland’s legal framework for employer-employee agreements is multifaceted, encompassing significant legislation such as the Federal Code of Obligations, which oversees contracts and their termination. Additionally, the Federal Labor Act delineates employment terms and conditions. Swiss employment contracts must encompass essential elements, including but not limited to working hours, remuneration, benefits such as paid leave, bonuses, probationary periods, as well as clauses pertaining to termination and severance.

It’s essential for both employers and employees to carefully review and understand the terms of any employment contract before signing, as they establish the rights and obligations of both parties during the employment relationship

The standard probation period in Switzerland typically ranges from one to three months. Once the probation period concludes, the employee becomes entitled to the benefits and other entitlements outlined in the employment contract. However, it’s important to note that there is no specific protection for employees in cases of dismissal related to illness, pregnancy, or accidents during this period. Termination of employment during probation can occur with a seven-day notice period.

The typical workweek in Switzerland typically spans 40 to 42 hours, while office workers are generally limited to a maximum of 45 hours per week.

The regulations regarding statutory and contractual overtime are as follows:

• Individuals working overtime must not surpass two hours per day.
• For employees working a 50-hour week, the yearly overtime limit is 140 hours.
• For employees working a 45-hour week, the yearly overtime limit is 170 hours.
• The responsibility lies with the employees who opt for overtime, and they must promptly inform the employer.
• Overtime compensation is set at a minimum rate of 25% higher than regular pay.

In Switzerland, the Federal government implements a progressive income tax system. This entails dividing an individual’s income into various brackets, which are determined by factors such as marital status and whether they have children. As income increases, tax rates also increase accordingly within these brackets.

The income tax thresholds for a married couple or a single individual with a child are as follows:

• Healthcare: Switzerland boasts a top-tier healthcare system, offering universal coverage. All residents must possess health insurance, granting them access to a diverse array of medical services and facilities.
• Pension: Switzerland operates a compulsory occupational pension scheme, referred to as the second pillar, complementing the state pension (first pillar). Both employees and employers contribute to this pension fund, ensuring retirees’ financial stability.
• Annual Leave: Swiss workers typically enjoy four weeks of paid vacation annually, affording them abundant opportunities for leisure and rejuvenation.

Whether you can live and work freely in Switzerland depends on your nationality. Swiss nationals, citizens of European Union (EU) member states, and nationals from European Free Trade Association (EFTA) countries have this privilege. However, individuals from countries outside of these categories require a valid work permit to reside and work in Switzerland.

There are five types of work permits available to third-country nationals seeking employment in Switzerland:

1. L Permit: The L Permit is a short-stay work permit issued to foreign nationals with a valid employment contract lasting between 3 to 12 months only. EU/EFTA nationals can freely enter Switzerland for up to three months to seek employment that qualifies for an L or B work permit, whereas third-country nationals must obtain a work visa before arriving in Switzerland.
2. B Permit: The B Permit is a residence permit granted to individuals with either a permanent or fixed employment contract lasting longer than 12 months. EU/EFTA nationals must renew this permit every five years, while third-country nationals must renew it annually.
3. C Permit: The C Permit is issued to foreign residents who have lived continuously in Switzerland for five years (for EU/EFTA nationals) or 10 years (for third-country nationals).
4. Ci Permit: The Ci Permit is designated for spouses or children under the age of 21 of foreign workers employed by international organizations or permanent missions in Switzerland. This permit provides access to the Swiss labor market.
5. G Permit: Foreign nationals residing in a border country to Switzerland and commuting weekly for work are issued the G Permit.

Paid public holidays in Switzerland are determined by individual cantons (states). Some of the notable holidays include:

• New Year’s Day
• Good Friday
• Easter Monday
• Ascension Day
• Whit Monday
• Swiss National Day
• Christmas Day
• St. Stephen’s Day

Employees receive payment for annual leave, sick leave, and working on public holidays.

An employee is entitled to four weeks of paid vacation per year.

An employee is granted paid sick leave of 21 days during the first year of employment. In the second year, they can take between one and two months off, and in the third year, they are eligible for eight or nine weeks of sick leave.

Furthermore, employees may be entitled to additional paid sick leave and unpaid leave, depending on the regulations of the canton.

Employees are required to submit sick leave notes within three days of their absence.

• Maternity Leave: A female employee is entitled to receive three months of paid maternity leave. This entitlement is guaranteed provided the individual has been employed and has contributed to social security.During maternity leave, women can receive 80% of their pay for up to 14 weeks, except in Geneva where the allowance extends to 16 weeks. While there isn’t a legally mandated paternity leave, some companies may offer it at their discretion.New mothers are entitled to special allowances, such as exemption from physical labor and night shifts, to safeguard their health. These benefits, including maternity and paternity leave, are covered under the social security scheme.

Termination of Service: The termination of an employment contract in Switzerland can happen through various means, including:

1. Mutual agreement
2. Initiative from either party
3. In the event of the employee’s death
4. Upon the expiration of the contract
5. For other justified reasons

The notice period for termination can vary based on the length of the employee’s service:

• Employees on probation: 7 days
• Employees with up to one year of employment: One month
• Employees with between two and nine years of employment: Two months or as stipulated in the contract
• Employees with more than 10 years of employment: Three months