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Knowledgebase
Employer of Record (EOR) in Switzerland for Hiring Employees in 2026
Marcus Altenburg, Counsel
8 February, 2026
Table of Contents
1. Best EOR providers in Switzerland: comparison 2026
2. Hiring process through EOR in Switzerland: step-by-step checklist
3. Services provided by EOR in Switzerland (Swiss EOR services)
4. Key advantages of using Swiss employer of record
5. Cost structure when using employer of record in Switzerland
6. EOR vs. PEO vs. staff leasing (Personalverleih) in Switzerland: what's the difference?
7. Key aspects of Swiss labor law (for hiring through EOR)
8. Common mistakes when hiring in Switzerland and how to avoid them
9. FAQ
10. Choose a reliable EOR provider in Switzerland
2. Hiring process through EOR in Switzerland: step-by-step checklist
3. Services provided by EOR in Switzerland (Swiss EOR services)
4. Key advantages of using Swiss employer of record
5. Cost structure when using employer of record in Switzerland
6. EOR vs. PEO vs. staff leasing (Personalverleih) in Switzerland: what's the difference?
7. Key aspects of Swiss labor law (for hiring through EOR)
8. Common mistakes when hiring in Switzerland and how to avoid them
9. FAQ
10. Choose a reliable EOR provider in Switzerland
Employer of record (EOR) is a global employment solution. It lets companies hire employees in Switzerland without registering a local entity. The EOR provider becomes the official employer for your staff. They handle all legal and administrative duties — salary calculations, taxes, and compliance with Swiss labor law. This article is a complete guide to using EOR for fast and secure market entry in Switzerland. We compare key providers, break down the hiring process step by step, and reveal the cost structure.
"Over 20 years of practice in Swiss corporate law, I've seen companies waste months and tens of thousands of francs trying to navigate the system alone. The biggest mistake is underestimating cantonal variations in labor rules and social contributions. EOR eliminates that risk by handling compliance from day one." — Marcus Altenburg, Goldblum and Partners
Best EOR providers in Switzerland: comparison 2026
Choosing the right partner is the critical first step. We analyzed the market and identified three leading solutions. Our selection is based on their expertise in Switzerland, pricing transparency, and quality of support.
Source: Comparative analysis based on G2 reviews and provider documentation, 2026.
Multiplier overview
Multiplier operates with in-country legal entities across 150+ countries. This includes Switzerland. Their platform handles cantonal-specific requirements. Family allowance rates vary from 1.025% in Zurich to 2.22% in Geneva. BVG/LPP pension contributions scale by age (7 – 18%). The provider offers weekly payroll processing. It integrates with tools like Slack and BambooHR. Clients report average onboarding time of 5 – 7 business days.
Multiplier's strength lies in managing Switzerland's decentralized system. Each canton sets its own rates for certain contributions. The provider's local team ensures compliance without requiring client intervention. For companies hiring across multiple cantons, this eliminates the risk of miscalculating employer obligations.
Multiplier's strength lies in managing Switzerland's decentralized system. Each canton sets its own rates for certain contributions. The provider's local team ensures compliance without requiring client intervention. For companies hiring across multiple cantons, this eliminates the risk of miscalculating employer obligations.
Remote overview
Remote positions itself as a compliance-first platform. In Switzerland, this means drafting employment contracts that meet Swiss Code of Obligations (Articles 319 – 343) requirements. They adapt to cantonal labor standards. The provider handles registration with AHV/AVS (old-age and survivors' insurance), BVG/LPP (occupational pension), and UVG/LAA (accident insurance).
Remote's dashboard provides real-time visibility. You can track payroll processing, tax withholdings, and benefits administration. The platform supports multi-currency payments in CHF. It offers IP assignment clauses in contracts to protect client intellectual property. For startups entering Switzerland, Remote's fixed monthly fee provides budget predictability.
Remote's dashboard provides real-time visibility. You can track payroll processing, tax withholdings, and benefits administration. The platform supports multi-currency payments in CHF. It offers IP assignment clauses in contracts to protect client intellectual property. For startups entering Switzerland, Remote's fixed monthly fee provides budget predictability.
Omnipresent overview
Omnipresent serves 160+ countries. They focus on high-cost markets like Switzerland. Their pricing sits between Multiplier and Remote. This offers a middle-ground option for companies balancing cost and service quality. The provider manages employer contributions (6.4 – 23.5% depending on canton and industry). They handle compliance with SECO (State Secretariat for Economic Affairs) regulations.
Omnipresent's 24/7 support team includes Swiss labor law specialists. They assist with complex scenarios. Examples include termination procedures (notice periods of 1 – 3 months depending on tenure) and work permit applications for non-EU/EFTA nationals. The platform integrates with accounting software like Xero and QuickBooks. This enables seamless financial reporting.
Omnipresent's 24/7 support team includes Swiss labor law specialists. They assist with complex scenarios. Examples include termination procedures (notice periods of 1 – 3 months depending on tenure) and work permit applications for non-EU/EFTA nationals. The platform integrates with accounting software like Xero and QuickBooks. This enables seamless financial reporting.
Hiring process through EOR in Switzerland: step-by-step checklist
The onboarding process through EOR is standardized. This ensures maximum speed and legal compliance. Here are the main steps from first contact to the employee's first working day.
Step 1: consultation and proposal preparation
The EOR provider conducts an initial assessment of your hiring needs. This includes determining whether the candidate requires a work permit. For non-EU/EFTA nationals, Switzerland maintains annual quotas — 8,500 B/L permits for 2025. The provider understands the role's requirements. They estimate total employment costs including employer contributions.
During this phase, the provider verifies the candidate's right to work in Switzerland. Swiss/EU/EFTA citizens can start immediately. For others, the EOR sponsors the permit application. They demonstrate to authorities that no suitable Swiss or EU candidate was available. This is done through a labor market test.
During this phase, the provider verifies the candidate's right to work in Switzerland. Swiss/EU/EFTA citizens can start immediately. For others, the EOR sponsors the permit application. They demonstrate to authorities that no suitable Swiss or EU candidate was available. This is done through a labor market test.
Step 2: work authorization verification and employment contract preparation
The EOR drafts a contract compliant with Swiss Code of Obligations and cantonal regulations. The contract specifies role, working hours (maximum 45 hours/week for most industries), salary in CHF, probation period (typically 1 – 3 months with 7-day notice), and benefits. Benefits include mandatory maternity leave (14 weeks at 80% salary).
For non-EU/EFTA nationals, the EOR manages the L or B permit application. Processing time varies by canton. It typically takes 4 – 8 weeks. Employment agreements are commonly signed "subject to permit approval." Work commences only after permit issuance.
For non-EU/EFTA nationals, the EOR manages the L or B permit application. Processing time varies by canton. It typically takes 4 – 8 weeks. Employment agreements are commonly signed "subject to permit approval." Work commences only after permit issuance.
Step 3: onboarding and document signing
Once the work permit is secured (if applicable), the employee signs the employment contract. The EOR provides onboarding materials in the employee's preferred language (German, French, or Italian). This includes company policies, payroll details, and instructions for accessing the EOR's employee portal.
The employee submits identification documents, bank account details for salary payments, and tax information. For foreign nationals, the EOR handles Quellensteuer (withholding tax at source) registration with the cantonal tax authority.
The employee submits identification documents, bank account details for salary payments, and tax information. For foreign nationals, the EOR handles Quellensteuer (withholding tax at source) registration with the cantonal tax authority.
Step 4: registration with social insurance and pension systems (AHV/AVS, BVG/LPP)
The EOR registers the employee with Switzerland's social security systems. This is a mandatory step. It cannot be skipped.
AHV/AVS (first pillar): Old-age, survivors', and disability insurance. Contributions are split 50/50 between employer and employee. The employer pays 5.3% of gross salary (employee pays another 5.3%). There is no salary cap for AHV contributions.
BVG/LPP (second pillar): Occupational pension fund. Mandatory for employees earning above CHF 22,680 annually (2025 threshold). Contribution rates increase with age: 7% for ages 25 – 34, 10% for 35 – 44, 15% for 45 – 54, and 18% for 55 – 65. The employer must contribute at least 50% of the total.
The EOR selects a pension fund (Pensionskasse). They handle all administrative filings with the cantonal compensation office (Ausgleichskasse). The employee receives confirmation of registration within 2 – 3 weeks.
AHV/AVS (first pillar): Old-age, survivors', and disability insurance. Contributions are split 50/50 between employer and employee. The employer pays 5.3% of gross salary (employee pays another 5.3%). There is no salary cap for AHV contributions.
BVG/LPP (second pillar): Occupational pension fund. Mandatory for employees earning above CHF 22,680 annually (2025 threshold). Contribution rates increase with age: 7% for ages 25 – 34, 10% for 35 – 44, 15% for 45 – 54, and 18% for 55 – 65. The employer must contribute at least 50% of the total.
The EOR selects a pension fund (Pensionskasse). They handle all administrative filings with the cantonal compensation office (Ausgleichskasse). The employee receives confirmation of registration within 2 – 3 weeks.
Step 5: first working day and team integration
The employee begins work after all registrations are complete. The EOR processes the first payroll run, typically by the end of the month. Salary is paid in CHF to the employee's Swiss bank account.
The client company manages day-to-day work assignments, performance reviews, and team integration. The EOR remains the legal employer. They do not interfere with operational management. For termination, the client notifies the EOR. The EOR then handles the legal process. This includes notice periods (1 month in year one, 2 months in years 2 – 9, 3 months from year 10 onward).
The client company manages day-to-day work assignments, performance reviews, and team integration. The EOR remains the legal employer. They do not interfere with operational management. For termination, the client notifies the EOR. The EOR then handles the legal process. This includes notice periods (1 month in year one, 2 months in years 2 – 9, 3 months from year 10 onward).
Need to set up a company in Switzerland, take over an existing business, or optimize your taxes? Contact our specialists in company registration and Swiss tax law.
Services provided by EOR in Switzerland (Swiss EOR services)
The EOR provider takes on the full cycle of HR administration. Core services include payroll processing, employment contract management, and tax compliance.
Payroll calculation and taxes (Swiss payroll and tax compliance)
The EOR calculates monthly salary. They withhold federal and cantonal taxes. They submit employer contributions to AHV/AVS (5.3%), unemployment insurance ALV/AC (1.1% up to CHF 148,200), and family allowances (1 – 3% depending on canton). For foreign employees without a C permit, the EOR manages Quellensteuer withholding. Rates are progressive and set by each canton.
Payroll runs occur monthly. Salary is paid by the end of the month. The EOR provides detailed payslips. These show gross salary, deductions, and net pay. All submissions to tax authorities and social insurance funds are handled automatically through the EOR's accounting services.
Payroll runs occur monthly. Salary is paid by the end of the month. The EOR provides detailed payslips. These show gross salary, deductions, and net pay. All submissions to tax authorities and social insurance funds are handled automatically through the EOR's accounting services.
Employment contracts and legal compliance
The EOR drafts contracts that meet Swiss Code of Obligations requirements (Articles 319 – 343) and cantonal labor laws. Contracts specify probation periods (maximum 3 months per Article 335b), working hours, overtime compensation (minimum 25% premium), and termination notice periods.
Switzerland has no statutory minimum wage at the federal level. Some cantons set minimums. As of 2025, Geneva maintains a minimum wage of CHF 24 per hour. The EOR ensures contracts comply with all applicable standards.
Switzerland has no statutory minimum wage at the federal level. Some cantons set minimums. As of 2025, Geneva maintains a minimum wage of CHF 24 per hour. The EOR ensures contracts comply with all applicable standards.
Benefits and insurance administration
The EOR manages mandatory insurance coverage:
- Medical insurance: Employees must obtain their own basic health insurance (Krankenkasse) within 3 months of arrival. The EOR provides guidance. They do not purchase policies on behalf of employees.
- Accident insurance (UVG/LAA): The employer pays for occupational accident coverage (average 0.79%) and non-occupational coverage (average 1.31%). The EOR registers the employee with SUVA or a private insurer.
- Pension contributions (BVG/LPP): The EOR enrolls employees in a pension fund. They manage monthly contributions (6.4 – 22% of coordinated salary depending on age and industry).
HR support and employee lifecycle management
The EOR provides ongoing HR support. This includes guidance on annual leave (minimum 4 weeks for employees over 20, 5 weeks for those under 20), sick leave (typically 3 weeks full pay in year one, increasing with tenure), and maternity leave (14 weeks at 80% salary, capped at CHF 196/day). Paternity leave is two weeks at 80%.
For termination, the EOR handles notice periods, final salary calculations, and issuance of work certificates (Arbeitszeugnis) required under Swiss law. The provider ensures compliance with protection periods. Termination is prohibited during these periods (such as during illness or pregnancy).
For termination, the EOR handles notice periods, final salary calculations, and issuance of work certificates (Arbeitszeugnis) required under Swiss law. The provider ensures compliance with protection periods. Termination is prohibited during these periods (such as during illness or pregnancy).
Key advantages of using Swiss employer of record
Using EOR in Switzerland provides strategic advantages. These include speed, risk reduction, and cost savings.
Fast market entry: Hiring takes days instead of the 3–6 months required to register a legal entity. A 2023 report by IQ-EQ noted that 206 foreign firms entered Switzerland through quick-setup structures. They created 640 jobs in year one.
Compliance-first approach: The EOR ensures adherence to complex federal and cantonal labor law. This minimizes the risk of fines. Switzerland's decentralized system means each canton sets its own rates for family allowances and certain taxes. The EOR manages these variations automatically.
Reduced administrative burden: All HR tasks, payroll, and reporting are outsourced. Companies save approximately 50% on administrative costs. This is compared to maintaining in-house HR for Swiss operations.
Cost efficiency: No expenses for company registration (CHF 20,000 – 40,000), ongoing accounting (CHF 5,000 – 15,000/year), or legal services. The EOR fee is predictable. It scales with headcount.
Fast market entry: Hiring takes days instead of the 3–6 months required to register a legal entity. A 2023 report by IQ-EQ noted that 206 foreign firms entered Switzerland through quick-setup structures. They created 640 jobs in year one.
Compliance-first approach: The EOR ensures adherence to complex federal and cantonal labor law. This minimizes the risk of fines. Switzerland's decentralized system means each canton sets its own rates for family allowances and certain taxes. The EOR manages these variations automatically.
Reduced administrative burden: All HR tasks, payroll, and reporting are outsourced. Companies save approximately 50% on administrative costs. This is compared to maintaining in-house HR for Swiss operations.
Cost efficiency: No expenses for company registration (CHF 20,000 – 40,000), ongoing accounting (CHF 5,000 – 15,000/year), or legal services. The EOR fee is predictable. It scales with headcount.
Cost structure when using employer of record in Switzerland
Understanding the full cost is essential for budgeting. The total includes the EOR service fee plus mandatory employer contributions.
Pricing models: fixed fee vs. percentage
EOR providers use two main models:
Fixed monthly fee: Typically $400 – $2,500 per employee. This model provides budget predictability. It is common for small-to-medium teams. Multiplier charges $400/month. Remote charges $599/month.
Percentage of payroll: Usually 10 – 15% of gross salary. This model scales with salary levels. It is preferred by companies hiring high-earning executives. For a CHF 100,000 annual salary, a 12% fee would be CHF 12,000/year or CHF 1,000/month.
Both models typically exclude onboarding fees (one-time charge of $200 – $500) and offboarding fees (similar range). Some providers charge extra for work permit sponsorship ($500 – $1,500 depending on permit type).
Fixed monthly fee: Typically $400 – $2,500 per employee. This model provides budget predictability. It is common for small-to-medium teams. Multiplier charges $400/month. Remote charges $599/month.
Percentage of payroll: Usually 10 – 15% of gross salary. This model scales with salary levels. It is preferred by companies hiring high-earning executives. For a CHF 100,000 annual salary, a 12% fee would be CHF 12,000/year or CHF 1,000/month.
Both models typically exclude onboarding fees (one-time charge of $200 – $500) and offboarding fees (similar range). Some providers charge extra for work permit sponsorship ($500 – $1,500 depending on permit type).
Mandatory employer contributions
These are non-negotiable costs required by Swiss law. The EOR pays them on behalf of the client.
For a CHF 100,000 annual salary in Zurich, total employer contributions are approximately CHF 23,500 (23.5%). This does not include the EOR service fee.
"Many forget to account for cantonal differences in family allowance rates and BVG pension contributions. These can significantly impact the final budget. Always request a detailed calculation from the EOR provider for the specific canton." — Marcus Altenburg, Goldblum and Partners
Hidden and additional costs
Be aware of potential extra charges:
Always request a detailed fee schedule before signing a contract. Transparent providers will provide a full cost breakdown. This includes all potential charges.
- Onboarding/offboarding fees: $200 – $500 per event
- Work permit processing: $500 – $1,500 for non-EU/EFTA nationals
- Currency conversion fees: Some providers charge 1 – 3% for non-CHF payments
- Deposit requirements: Certain providers require a security deposit equal to 1 – 2 months of salary
Always request a detailed fee schedule before signing a contract. Transparent providers will provide a full cost breakdown. This includes all potential charges.
EOR vs. PEO vs. staff leasing (Personalverleih) in Switzerland: what's the difference?
Switzerland has three distinct employment models: EOR, PEO, and staff leasing (Personalverleih). Understanding their legal differences is critical.
EOR: The provider is the sole legal employer. The client does not need a Swiss entity. The EOR handles all compliance, payroll, and benefits. This model is ideal for companies testing the Swiss market or hiring 1 – 5 employees. In Switzerland, EOR is regulated as staff leasing. It requires authorization.
PEO: The client must have a registered Swiss entity. The PEO shares employment responsibilities (co-employment). The client remains involved in tax filings and benefits decisions. This model suits companies with an existing Swiss presence. They want to outsource HR administration.
Personalverleih (staff leasing): Regulated by Swiss law (AVG - Arbeitsvermittlungsgesetz). The leasing company must obtain a cantonal license from SECO. This model is used for temporary staffing (Temporärarbeit). Workers are leased to client companies for short-term assignments. It requires a security deposit of CHF 50,000 – 1,000,000 depending on the canton.
For cross-border EOR (provider based outside Switzerland), Swiss law prohibits leasing non-EU/EFTA workers into Switzerland without a Swiss entity and license. This is a critical compliance point. Amendments to the Ordinance on Free Movement of Persons effective January 1, 2026 clarify that EU/EFTA nationals leased for under one year receive residence permits matching the actual contract duration.
PEO: The client must have a registered Swiss entity. The PEO shares employment responsibilities (co-employment). The client remains involved in tax filings and benefits decisions. This model suits companies with an existing Swiss presence. They want to outsource HR administration.
Personalverleih (staff leasing): Regulated by Swiss law (AVG - Arbeitsvermittlungsgesetz). The leasing company must obtain a cantonal license from SECO. This model is used for temporary staffing (Temporärarbeit). Workers are leased to client companies for short-term assignments. It requires a security deposit of CHF 50,000 – 1,000,000 depending on the canton.
For cross-border EOR (provider based outside Switzerland), Swiss law prohibits leasing non-EU/EFTA workers into Switzerland without a Swiss entity and license. This is a critical compliance point. Amendments to the Ordinance on Free Movement of Persons effective January 1, 2026 clarify that EU/EFTA nationals leased for under one year receive residence permits matching the actual contract duration.
Need to set up a company in Switzerland, take over an existing business, or optimize your taxes? Contact our specialists in company registration and Swiss tax law.
Key aspects of Swiss labor law (for hiring through EOR)
The EOR provider manages all these aspects. Understanding the framework helps you make informed decisions.
Employment contracts and probation period
Swiss law (Code of Obligations Article 335b) allows a probation period of up to 3 months. During probation, either party can terminate with 7 days' notice. After probation, notice periods increase: 1 month in year one, 2 months in years 2 – 9, and 3 months from year 10 onward.
Contracts must be in writing. They specify role, salary, working hours, and benefits. Switzerland recognizes three languages (German, French, Italian). Contracts should be in the employee's preferred language.
Contracts must be in writing. They specify role, salary, working hours, and benefits. Switzerland recognizes three languages (German, French, Italian). Contracts should be in the employee's preferred language.
Working hours, overtime, and 13th-month salary
The standard workweek is 40 – 42 hours across most industries. The legal maximum is 45 hours for office workers and 50 hours for industrial workers. Overtime must be compensated at a minimum 25% premium. It can also be granted as time off in lieu.
The 13th-month salary (Dreizehntes Monatsgehalt) is not legally mandatory. It is standard practice in most industries. It is typically paid in December. It equals one month's gross salary. Collective bargaining agreements (Gesamtarbeitsverträge) in certain sectors make it obligatory.
The 13th-month salary (Dreizehntes Monatsgehalt) is not legally mandatory. It is standard practice in most industries. It is typically paid in December. It equals one month's gross salary. Collective bargaining agreements (Gesamtarbeitsverträge) in certain sectors make it obligatory.
Taxes and social contributions (federal and cantonal)
Switzerland has a three-tier tax system: federal, cantonal, and municipal. For foreign employees without a C permit, taxes are withheld at source (Quellensteuer). Rates are progressive and set by each canton. Rates vary significantly — Zug has lower rates than Geneva.
Employer social contributions total 6.4 – 23.5% of gross salary. This depends on canton and industry. Employee contributions (AHV, unemployment, pension) are deducted from gross salary before net pay is calculated.
Employer social contributions total 6.4 – 23.5% of gross salary. This depends on canton and industry. Employee contributions (AHV, unemployment, pension) are deducted from gross salary before net pay is calculated.
Leave entitlements (annual, maternity, parental, sick leave)
Annual leave: Minimum 4 weeks for employees over 20, 5 weeks for those under 20. Many employers offer 5 weeks as standard.
Maternity leave: 14 weeks at 80% salary (capped at CHF 196/day). Paid through the income compensation scheme (EO).
Parental leave: Switzerland introduced 2 weeks of paternity leave in 2021. Paid at 80% salary (capped at CHF 196/day). Some cantons and employers offer more generous policies.
Sick leave: No statutory minimum. Typical practice is 3 weeks full pay in year one. This increases to 6–12 weeks with tenure. Employers often purchase loss-of-earnings insurance (Krankentaggeldversicherung) to cover extended absences.
Maternity leave: 14 weeks at 80% salary (capped at CHF 196/day). Paid through the income compensation scheme (EO).
Parental leave: Switzerland introduced 2 weeks of paternity leave in 2021. Paid at 80% salary (capped at CHF 196/day). Some cantons and employers offer more generous policies.
Sick leave: No statutory minimum. Typical practice is 3 weeks full pay in year one. This increases to 6–12 weeks with tenure. Employers often purchase loss-of-earnings insurance (Krankentaggeldversicherung) to cover extended absences.
Termination conditions (notice periods, severance)
Notice periods are defined by law. They can be extended by contract. Standard periods: 1 month in year one, 2 months in years 2 – 9, 3 months from year 10 onward. Notice must be given in writing.
Severance pay is not legally required. Exceptions include cases of mass redundancy or if specified in the employment contract. Employers often negotiate severance packages to avoid disputes.
Termination is prohibited during protection periods: illness (30 – 180 days depending on tenure), pregnancy, and 16 weeks after childbirth. Violating these protections can result in compensation claims.
Severance pay is not legally required. Exceptions include cases of mass redundancy or if specified in the employment contract. Employers often negotiate severance packages to avoid disputes.
Termination is prohibited during protection periods: illness (30 – 180 days depending on tenure), pregnancy, and 16 weeks after childbirth. Violating these protections can result in compensation claims.
Common mistakes when hiring in Switzerland and how to avoid them
Underestimating cantonal differences
Switzerland's 26 cantons set their own rates for family allowances, certain taxes, and minimum wages (where applicable). A company hiring in Geneva faces different costs than one hiring in Zurich. The EOR provider manages these variations. Clients should request canton-specific cost estimates before hiring.
Misclassifying employees as contractors
Swiss authorities strictly distinguish between employees and independent contractors. Misclassification can result in retroactive social insurance payments and penalties. Key factors: does the worker use company equipment, follow a fixed schedule, and receive instructions on how to perform tasks? If yes, they are likely an employee. The EOR ensures proper classification from the start.
Ignoring cultural considerations during onboarding
Switzerland has four official languages and distinct regional cultures. An employee in Zurich (German-speaking) may have different expectations than one in Geneva (French-speaking). The EOR provides localized onboarding materials. Clients should invest in cultural training for managers to avoid misunderstandings.
FAQ
Yes. EOR is legal in Switzerland as a form of regulated staff leasing. The EOR provider must have a Swiss legal entity. If leasing workers across borders, they need a labor-leasing authorization from SECO. Cross-border EOR (provider based outside Switzerland) is prohibited for non-EU/EFTA nationals.
Amendments to the Ordinance on Free Movement of Persons (effective January 1, 2026) clarify that EU/EFTA nationals leased for under one year receive residence permits matching the actual contract duration.
Amendments to the Ordinance on Free Movement of Persons (effective January 1, 2026) clarify that EU/EFTA nationals leased for under one year receive residence permits matching the actual contract duration.
EOR is a specific type of staff leasing. The provider acts as the legal employer for the client's long-term employees. Traditional Personalverleih (temporary staffing) involves short-term assignments. Workers are leased to multiple clients.
The key difference: EOR employees work exclusively for one client company. They are integrated into that company's team. Temporary staff work for multiple clients on rotating assignments. Both require the provider to hold a cantonal license if operating in Switzerland.
The key difference: EOR employees work exclusively for one client company. They are integrated into that company's team. Temporary staff work for multiple clients on rotating assignments. Both require the provider to hold a cantonal license if operating in Switzerland.
For Swiss/EU/EFTA nationals: 5 – 10 business days from contract signing to first working day. This includes contract preparation, registration with social insurance systems, and payroll setup.
For non-EU/EFTA nationals: 6 – 12 weeks due to work permit processing. The timeline varies by canton and permit type (L permit for under 1 year, B permit for 1 – 5 years).
For non-EU/EFTA nationals: 6 – 12 weeks due to work permit processing. The timeline varies by canton and permit type (L permit for under 1 year, B permit for 1 – 5 years).
The EOR includes IP assignment clauses in employment contracts. These transfer ownership of all work-related IP to the client company. This is standard practice. It complies with Swiss copyright law, which grants initial ownership to the creator but allows contractual transfer.
For sensitive IP, clients should work with the EOR to include confidentiality agreements and non-compete clauses. These are enforceable in Switzerland if reasonable in scope and duration.
For sensitive IP, clients should work with the EOR to include confidentiality agreements and non-compete clauses. These are enforceable in Switzerland if reasonable in scope and duration.
No. That is the core benefit of EOR. The EOR provider acts as the legal employer. This eliminates the need for the client to register a Swiss company. This saves 3–6 months and CHF 20,000–40,000 in setup costs.
However, if the company plans to hire 10+ employees or establish a permanent office, registering a Swiss entity (AG or GmbH) may be more cost-effective in the long term.
The main risks include choosing an unlicensed provider (which violates Swiss labor leasing laws), misunderstanding the scope of services (some EORs do not handle work permits for non-EU/EFTA nationals), and underestimating total costs (forgetting cantonal variations in contributions). Always verify the provider holds a valid SECO authorization. Request a detailed cost breakdown for your specific canton.
Yes. Most EOR providers manage multi-cantonal hiring. Each canton has different rates for family allowances and certain taxes. The EOR calculates these automatically. For example, an employee in Zurich pays 1.025% family allowance, while one in Geneva pays 2.22%. The provider ensures compliance for each location.
The EOR updates the employee's registration with the new cantonal authorities. This includes re-registering with the local compensation office (Ausgleichskasse) and adjusting tax withholding rates. The process typically takes 2 – 4 weeks. The employee's contract remains valid. Salary may be adjusted if the new canton has different minimum wage requirements.
The client notifies the EOR of the decision to terminate. The EOR then manages the legal process. This includes issuing written notice (1 – 3 months depending on tenure), calculating final salary and accrued leave, and providing a work certificate (Arbeitszeugnis). The EOR ensures compliance with protection periods (illness, pregnancy). Violating these can result in compensation claims.
Yes. Leading EOR providers have experience in regulated industries. For fintech roles, they ensure compliance with FINMA regulations. For pharma, they handle industry-specific insurance and safety requirements. Always confirm the provider's expertise in your sector before signing a contract.
EOR is a temporary solution. The provider is the legal employer. You do not own a Swiss entity. A subsidiary (AG or GmbH) is a permanent structure. You own the company and are the direct employer. EOR is faster and cheaper for 1 – 10 employees. A subsidiary is more cost-effective for 10+ employees or long-term operations.
The EOR enrolls the employee in a pension fund (Pensionskasse). Contributions are mandatory for employees earning above CHF 22,680 annually. Rates increase with age: 7% for ages 25 – 34, 10% for 35 – 44, 15% for 45 – 54, and 18% for 55 – 65. The employer must contribute at least 50% of the total. The EOR manages all filings and payments.
Yes. The EOR sponsors the work permit application. They demonstrate to authorities that no suitable Swiss or EU candidate was available (labor market test). Processing time is 4 – 8 weeks. Switzerland maintains annual quotas (8,500 B/L permits for 2025). The EOR cannot guarantee approval, but they maximize the chances by preparing compliant documentation.
The client company does not have a Swiss tax presence. The EOR is the legal employer and handles all tax filings. The client pays the EOR's invoice (service fee + gross salary + employer contributions). This is treated as a service expense in the client's home jurisdiction. Consult a tax advisor to confirm treatment in your country.
EOR providers operating in Switzerland must comply with Swiss Federal Act on Data Protection (FADP) and EU GDPR (if handling EU citizens' data). They use secure platforms for payroll and HR data. Always review the provider's data processing agreement (DPA) before signing. Confirm they have ISO 27001 certification or equivalent.
Choose a reliable EOR provider in Switzerland
Ready to start hiring in Switzerland? Our team at Goldblum and Partners has deep expertise in the Swiss market. We are ready to provide you with a detailed cost calculation and free consultation. Avoid legal risks and administrative complexity.
We have supported international companies in establishing Swiss operations for over 20 years. Our services include EOR advisory, entity formation, and ongoing compliance management. Contact us for a 15-minute video consultation to assess your hiring needs.
We have supported international companies in establishing Swiss operations for over 20 years. Our services include EOR advisory, entity formation, and ongoing compliance management. Contact us for a 15-minute video consultation to assess your hiring needs.
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Disclaimer: The information on this website is not intended to constitute legal advice or to create an attorney-client relationship. Laws change periodically; therefore, the information may not be accurate. It is imperative that you seek legal counsel for specific guidance on Swiss employment law and EOR compliance.