Employer of Record Guide in 

Switzerland

How the Swiss EOR arrangement works

There are two separate relationships: the EOR employs the worker, and your company contracts with the EOR for the assignment and service. The employee's employment rights continue even if your commercial assignment changes.

SECO expressly describes the model in which one business directs a worker employed by another as staff leasing. Commercial leasing within Switzerland requires a cantonal licence; cross-border activity requires an additional federal licence. Check the actual employing entity, its licence scope and the proposed work arrangement rather than relying on a brand name or company registration. SECO links to the licence register.

A foreign staffing company cannot simply lease workers from abroad into Switzerland. That prohibition is different from a properly authorised Swiss leasing business employing an eligible worker. Recruiting a new EU/EFTA arrival for leasing also requires the appropriate federal permission. A new non-EU/EFTA arrival generally cannot obtain an initial Swiss work permit through staff leasing; limited exceptions require authority review. An existing resident's entitlement to work and change jobs must also be checked. SEM notification rules, SECO worker rules.

The practical first step is to send the proposed role, work location, nationality and current permit to the EOR for an arrangement and eligibility check. If that check fails, changing the service label does not solve it.

When an EOR fits—and when to consider another route

Team size alone does not settle the choice. A role involving regulated activity, significant authority to act for your business, a new third-country arrival or regular cross-border work can require a different arrangement or additional advice. An EOR employment contract does not determine your company's corporate-tax or permanent-establishment position. Independent-contractor status depends on how the work is organised and the person's financial risk, not the agreement's title. Classification guidance.

The Swiss hiring guide covers broader hiring and entity choices; use the eligibility and notification rules here to plan the EOR start. The Swiss EOR comparison presents provider options. Confirm current capabilities, fees and the proposed Swiss arrangement directly with the provider before choosing.

Who is responsible for what?

This is a practical allocation to confirm in the service agreement. Staff leasing does not transfer every workplace duty to the EOR. For example, work organisation and safety depend on the client workplace, including a home office. Employment termination must remain separate from a request to end the assignment. SECO staffing guidance, home-office duties.

Pay, tax and the employment budget

Minimum Wage

Switzerland has no single federal minimum wage. Cantonal, municipal and sector rules can set the applicable floor. The following 2026 cantonal reference rates are useful starting points, subject to territorial scope and exclusions; they are not a staff-leasing quote. Minimum-wage framework.

For a leased employee, check the staff-leasing collective agreement and any applicable client-sector agreement before setting pay. Minimum-pay categories depend on qualifications and location, and the 2026 agreement has its own salary tables. A cantonal headline rate cannot replace that assessment. 2026 agreement update.

Payroll Cycle

Agree the salary period and due date in the employment terms. Monthly payroll is common; the applicable agreement may specify payment timing. Each payslip should distinguish gross salary, employee deductions and net pay. Keep time records and variable-pay approvals aligned with payroll cutoffs.

Individual Income Tax

Employment income can attract federal, cantonal and municipal tax. Many foreign residents without a C permit, and some workers resident abroad, are subject to payroll withholding. The amount depends on the relevant canton and personal circumstances. Withholding is an employee tax deduction; it is not an extra employer social contribution. Source-tax rules.

Tax Residency Criteria

Establish where the employee lives and works before setting up withholding. Cross-border commuting, workdays abroad and treaty rules can change tax and social-insurance treatment. A Swiss employment contract does not make the same payroll treatment correct for every resident or commuter. Use the employee's actual circumstances and the responsible tax authority's guidance.

Employer Social Security Contributions

Separate salary, employer obligations and the EOR's service fee. For an employee covered by the ordinary Swiss social-insurance system, the main budget inputs are:

The 10.6% combined AHV/IV/EO rate includes both payer shares; it is not the employer's own rate. The 2026 social-insurance overview explains the insurance framework. Occupational-pension entry uses a CHF 22,680 annual salary threshold in 2026, subject to age, employment-duration and other exclusions; collective-agreement provisions may extend coverage. Pension eligibility, pension financing.

Request the total quote in CHF for a stated monthly or annual period. Include any contractual or collective-agreement 13th salary in gross compensation. For a monthly-paid employee, paid leave is already funded through salary; do not automatically add a second leave percentage. Hourly-paid arrangements can require separate supplements.

The Swiss hiring-cost guide contains role scenarios based on ordinary Swiss-insured employment and stated Zurich assumptions. Reconcile those assumptions with the proposed leasing agreement, pension plan and insurance cover before using a scenario as an EOR budget.

Working Hours

The federal Labour Act generally caps covered industrial, office, technical and large-retail sales work at 45 hours a week, and most other covered work at 50 hours. Contractual hours can be lower, and exclusions apply. Daily rest, breaks, night work and Sunday work have separate requirements. An applicable leasing or sector agreement can set a different normal schedule below the ceiling. Working-time rules.

Overtime Pay

Distinguish hours above the agreed schedule from hours above the statutory maximum. Contractual overtime can normally be compensated with equal time off by agreement; otherwise salary plus 25% is the default, subject to permitted written or collective-agreement changes. Statutory overtime has separate conditions and compensation rules, including exceptions for some employee categories. Record hours and let the employer determine the applicable treatment before promising payment or time off. Overtime rules.

Bonus Payments

A 13th salary is not universally imposed by federal law, but the staff-leasing collective agreement provides one for covered employees. Confirm coverage before calling it optional. Specify whether the annual salary quote already includes it and how it accrues for joiners and leavers. Distinguish an earned salary component from a discretionary bonus. Employment terms, staff-leasing agreement.

Employment Classifications

Open-ended, fixed-term and part-time employment can all create employment obligations. A fixed end date, reduced schedule or remote workplace does not remove the need to assess staff leasing. Independent status is decided from the real relationship. Agree the employment type and assignment terms before work begins; ending the client assignment does not itself terminate the employee's contract.

Leave and benefits during employment

Vacation Leave

The ordinary statutory minimum is four weeks of paid vacation per service year, with five weeks for employees under 20. At least two weeks should normally be taken consecutively. Contracts and agreements can grant more. The staff-leasing agreement grants 25 working days to covered employees below its age-20 boundary and from age 50, compared with 20 days for other covered employees. Apply the agreement's age and schedule rules rather than treating four weeks as the EOR entitlement. Statutory vacation, vacation guidance, staff-leasing agreement.

Sick Leave

Where ordinary statutory salary continuation applies and employment has lasted or was agreed for more than three months, the employer generally pays full salary for at least three weeks in the first service year, then appropriately longer in later years. An equivalent insurance arrangement can replace this obligation. For employees covered by the staff-leasing agreement, sickness insurance and its benefit conditions must be applied; do not present the ordinary three-week rule as their complete protection. The employee should report absence to the employer as well as the client, and follow the certification process. Sickness rules.

Maternity Leave

Eligible mothers receive 14 weeks, normally supported by 98 daily maternity allowances at 80% of prior average earnings, capped at CHF 220 a day. Social-insurance and employment eligibility tests apply, with special rules for premature birth and qualifying hospital stays. Contractual or agreement terms may be more generous. Separate dismissal protection generally applies during pregnancy and for 16 weeks after birth, outside probation. Maternity allowance, dismissal protection.

Leave for the Other Parent

An eligible employed other parent receives two weeks of leave within six months of birth. The allowance is 80% of prior average earnings, capped at CHF 220 a day. The working-day allocation depends on the work schedule. Confirm eligibility and payroll processing with the employer. Other-parent allowance.

Military/Civil Service Leave

Qualifying service can trigger loss-of-earnings compensation, salary-continuation obligations and protection against dismissal. Give the employer the service notice promptly so it can coordinate claims, pay and the assignment schedule. Social-insurance overview.

Other Leave Types

Paid care leave for a qualifying family member or partner is generally limited to the necessary time, up to three days per event and ten days per service year; child-care rules can provide additional protection. Eligible parents caring for a seriously ill or injured child can receive up to 14 weeks of care leave under a separate framework. Eligible adoption of a child under four can give rise to two weeks of adoption leave. Short absences for personal events depend on the applicable employment terms and circumstances. Care-leave rules, social-insurance benefits.

Summary

Before approving an offer, obtain the actual leave schedule, sickness policy, pension plan and accident cover. Identify statutory cover, any agreement requirements and optional benefits separately. Employees generally arrange Swiss compulsory health insurance themselves; that obligation does not establish that an EOR includes private medical, dental, life or vision cover. Swiss insurance framework.

Ending the assignment and employment

Termination Types

An assignment can end while the employment relationship continues. Ask the EOR to assess notice, salary, unused leave, protection periods and any reassignment obligations before agreeing a final date with the worker.

Open-ended employment normally ends through valid ordinary notice or agreement. Fixed-term employment normally ends on its agreed date, unless an early-termination provision or serious cause applies. Immediate dismissal requires serious cause and a careful assessment of the facts. Termination guidance.

Notice Period Requirements

For ordinary open-ended employment, the statutory defaults are:

Valid written terms or an applicable agreement can change these defaults within the law. Temporary staffing has specific rules: the staff-leasing agreement's shorter notice schedule applies to the specified temporary-work form, not automatically to every EOR employment contract. Have the employer identify the contract form and governing provisions. Notice must reach the recipient in time, and protected periods can prevent or suspend its effect. SECO notice rules, staff-leasing agreement.

Severance Pay

Do not assume that ending the service creates no departure cost. Review any statutory seniority-payment entitlement, contractual severance, collective-agreement provisions or social plan, as well as compensation exposure from an unlawful dismissal. The employer should calculate the actual obligations before the client approves departure. Code of Obligations, dismissal rules.

Probationary Periods

The ordinary open-ended-contract default is one month; valid written or agreement terms can change it, generally up to three months. Absence for illness, accident or certain legal duties can extend it. The leasing agreement has its own probation provisions. Confirm the actual terms rather than copying the ordinary default into every EOR offer. Probation rules.

Final Pay Requirements

Reconcile salary, earned salary components, approved expenses, hours and leave. Determine whether unused vacation can be taken before departure or must be paid. Coordinate the final payslip, insurance/pension steps and the employee's work certificate with the legal employer. Work certificates.

Anti-Discrimination & Wrongful Dismissal

Screen the timing and reason for dismissal. After probation, pregnancy and maternity, qualifying service and illness or accident can create blocking periods. For illness or accident, the ordinary limits are 30 days in year one, 90 days in years two through five and 180 days from year six. An abusive reason can create compensation liability even where ordinary notice would otherwise be possible. Dismissal protections.

Public holidays and work location

2026 Public Holidays

August 1 is the federal public holiday. Other statutory holidays vary by canton, with local differences too. For example, Geneva's 2026 calendar includes Jeûne genevois on September 10 and Restoration of the Republic on December 31. Use the official calendar for the employee's workplace; a national list cannot establish every employee's days off. Geneva calendar.

Cantonal Variations

Record the habitual workplace, municipality and normal work schedule before loading the calendar. Confirm any agreement or policy that grants additional days. August 1 falls on a Saturday in 2026; a holiday on a non-working day does not generally create an automatic substitute day. A remote worker's calendar should not be selected solely from the employer's head-office address.

Holiday Pay Rules

Monthly salary generally continues through public holidays. Hourly holiday compensation depends on the applicable law, contract and agreement. The staff-leasing agreement has specific public-holiday provisions. Holiday work can also engage Sunday-work authorisation, pay and rest rules, so obtain employer approval before scheduling it. Sunday-work rules, staff-leasing agreement.

Onboarding a Swiss EOR employee

Required Documentation

Provide the job description, proposed salary and hours, workplace and residence, identity documents, current permit or nationality evidence, social-insurance number if available, payment details and relevant payroll/tax information. Supply qualifications where role or agreement classification requires them.

Staff leasing normally requires a written employment contract and a written client leasing agreement, with the required content. Agree who directs work, the assignment's duration and location, pay components, expenses, leave and how changes are approved. Do not use the general validity of oral Swiss employment contracts as a reason to skip the leasing documents. SECO contract framework.

Work Authorization Requirements

For an eligible EU/EFTA national taking short-term employment with a Swiss employer for up to three months, the notification is generally due no later than the day before work starts. That differs from the usual eight-day advance notification for a foreign service provider's posted assignment. Longer EU/EFTA employment generally requires registration with the commune within 14 days of arrival and before starting work. These immigration steps do not replace the leasing assessment. SEM notification rules, EU/EFTA guidance.

Banking & Payment Setup

Agree salary currency, payroll cycle and the destination account. Validate that the payment arrangement can receive the agreed salary and disclose applicable conversion charges. Ask for a payroll example showing gross compensation, employer costs, employee deductions and net pay as separate amounts.

Language Requirements

Use employment terms the employee understands, and identify any local-language documentation required by an authority or agreement. Set the working language and provide understandable safety instructions. Canton and workplace needs matter more than a single assumed national business language.

Data Protection Compliance

Collect employee data only where relevant to suitability for the job or necessary for the employment contract. Limit access and establish retention and sharing arrangements between client and EOR. Check the destination and safeguards for international HR-data transfers. Employee consent is not a universal solution to the power imbalance in employment. Employee-data rules, international transfers.

Onboarding Timeline

1. Check the route: confirm the employing entity, licence scope, worker eligibility, work location, agreement and role classification.
2. Approve the full budget: reconcile annual/monthly salary, 13th salary, employer additions, cover and service fees.
3. Complete the documents: sign employment and client agreements; complete the required notification, permit and registration steps.
4. Prepare payroll and the workplace: arrange insurance and pension coverage, payroll inputs, equipment, time recording and absence procedures.
5. Confirm readiness: agree a start date only when the required authorisation and employment arrangements are in place; maintain a process for later location, hours or role changes.

Permit and authority decisions are case-specific. Use these dependencies to agree timing instead of assuming every Swiss EOR hire can begin in a fixed number of days.

Other conditions to confirm

Worker Classification

An EOR is an employment arrangement. A genuine independent business needs its own classification analysis; using contractor paperwork for a supervised employee can create retroactive contribution and employment claims. The compensation office assesses the actual relationship. Self-employment guidance.

Collective Bargaining Agreements

Check the EOR's activity and the worker's status against the staff-leasing agreement, then assess any applicable client-sector wage and working-time provisions. Coverage and exceptions matter: the leasing agreement excludes employees earning above the maximum SUVA-insured salary, while other applicable obligations still need assessment. Confirm the governing terms in writing for the proposed hire. Agreement framework, staff-leasing agreement.

Cantonal and Cross-Border Scope

Record the employee's canton and municipality, home residence, permit, role, working language and travel pattern. Changes can affect minimum pay, holidays, tax, insurance and immigration. A worker hired for Switzerland should not start regularly working from another country without a fresh assessment.

Remote Work Considerations

Agree workplace, schedule, equipment, expenses, time recording, security and the process for changing location. Swiss health-protection duties continue in a home office. International remote work can also change tax, social-insurance and immigration exposure. Home-office guidance.

What Borderless AI Handles

Borderless AI offers a global EOR service covering employment onboarding, contracts, payroll, benefits and compliance administration. For your Swiss hire, request confirmation of the actual employing entity, required licences, worker/role eligibility, agreement coverage, insurance and pension plan, immigration support, full quote and feasible start date. The confirmed service agreement should state what Borderless handles and what your company must provide. EOR services.

Bring the role, salary, hours, canton, residence, nationality/current permit and intended start date to the discussion. Book a demo to establish a workable arrangement and budget before making a firm employment commitment.