Employer of Record (EOR) in Switzerland
Native Teams offers solutions for businesses and solo professionals who perform their work on the global scene. Use our all-in-one services to compliantly hire the best global talent in Switzerland or secure a regular employment status with all the benefits.
How does an EOR in Switzerland work?
EOR service providers like Native Teams allow you to hire and expand across borders without setting up a legal entity in the target country. In essence, the EOR manages the administrative side of things, which often includes global payroll, tax contributions, and drafting compliant employment contracts, while businesses focus on day-to-day management.
In addition, freelancers and remote workers can obtain the status of ‘employed’ while they continue working for global clients. This also entails access to employee benefits including private health and pension insurance as well as social security contributions.
Who can use EOR Services in Switzerland?
EOR services can be utilised by businesses, looking to hire new team members compliantly and solo professionals who want to get employee benefits.
Businesses
Partnering with EOR can be especially valuable for businesses of all sizes, from startups to large corporations, expanding into the Switzerland market without a legal entity. EORs provide assistance with onboarding, managing payroll and ensuring compliance with Swiss labour laws.
Individuals
Any individuals who work globally such as freelancers, remote workers, and digital nomads can get the traditional employment benefits through Native Teams. This allows them to get the security of traditional employment with social security, taxes paid, and legal compliance while still enjoying freelance flexibility.
Features of Native Teams’ EOR services in Switzerland
Employment status
Native Teams’ EOR services allow global businesses to hire, pay, and manage global talent all in alignment with the local labour laws. Freelancers can regulate their employment status and receive benefits like a regular local employee would.
HR administration and documentation
HR tasks are automated, with easy access to documents via the Native Teams dashboard.
Global payroll
Business owners and freelancers can easily calculate their net salary, taxes, and contributions with our payroll calculator available in 70+ countries.
Benefits
Freelancers maintain flexibility while enjoying benefits like healthcare and pensions, and employers can offer these perks to attract top talent.
Explore Switzerland’s labour laws in our hiring guide.
What legal requirements exist for employment in Switzerland
Legal entity establishment
Before hiring any individual from Switzerland, employers are required to have their own legal entities established in the country.
Business tax number
To hire employees from Switzerland, employers are obligated to obtain a business tax number from the relevant authorities.
Employment contracts
Employers in Switzerland must provide their workers with employment contracts that are compliant with Swiss labour law.
Labour law adherence
Swiss employers must comply with all the relevant employment laws in the country, including those for minimum wages, working hours, paid leave, termination of employment, and others.
Social security
Employers must also withhold Social Security taxes from their employees’ salaries and pay their own contributions to employees’ Social Security insurance.
Income taxes
Employers in Switzerland are also obligated to withhold income taxes from their employees’ salaries and submit them to the cantonal tax authorities.
Please note that Swiss laws and regulations can change. So, it’s important to keep abreast of the latest developments regarding labour law.
Why Choose Native Teams as your Switzerland Employer of Record?
With Native Teams by your side, you’ll eliminate the need for establishing a legal entity in Switzerland and easily hire in the country. Our experts and presence in Switzerland ensure that the process is compliant with local labour laws as well as your administrative tasks handled. This includes managing income taxes and social security contributions and drafting compliant employment contracts.
What is an Employer of Record?
An Employer of Record (EOR) is a third-party organisation that takes on the legal responsibilities associated with employing workers on behalf of another company. The EOR handles various tasks, including payroll, tax compliance, benefits administration, and adherence to local labour laws. It also assists freelancers and remote workers in formalising their employment status and gaining access to benefits.
What are the costs of using an Employer of Record in Switzerland?
The costs of EOR services in Switzerland depend on the provider, the number of employees, and the specific services required. Native Teams offers competitive pricing, with business plans starting at €79 per employee per month and individual plans at €49. Both options include essential features for legal employment.
What is the difference between PEO and EOR?
An EOR takes on full legal employment responsibilities, including payroll, taxes, and compliance, while a PEO shares these duties with the client in a co-employment model. EORs are ideal for companies looking to expand into new regions without establishing legal entities, while PEOs are typically utilised by businesses already operating in a country to streamline their HR functions.
What are the responsibilities of an Employer of Record (EOR) service provider?
EOR providers serve as legal employer, overseeing payroll, benefits, and employment contracts while ensuring compliance with labour laws. They mitigate risk by assuming liability for employment-related issues and provide HR support, allowing businesses to concentrate on their core operations.
Is using an Employer of Record in Switzerland legal?
Yes, utilising an EOR in Switzerland is completely legal and aligns with Swiss labour regulations. International companies frequently rely on EOR services to enter the Swiss market, and freelancers utilise them to formalise their employment arrangements.
Why should I use EOR instead of opening my own company or an office in Switzerland?
An EOR enables businesses to bypass the complexities associated with establishing a legal entity in Switzerland. The EOR manages essential legal employment tasks, such as payroll and compliance, offering the flexibility to scale operations without the challenges of dissolving a company if plans change.
How many people can I employ in Switzerland?
There is no legal cap on the number of employees a company can hire in Switzerland, provided that labour laws are observed. The number of hires depends on your business needs, financial resources, and capability to effectively manage staff.