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15 April 2024

What can an Employer of Record do for the expansion of your company in Switzerland?

Written by

Written by: Hans

International Payroll Specialist

Are you looking to hire some of Switzerland’s finest professionals, yet is your company located outside this paradise? No problem, we got the solution for you. 

Whether you’re gauging the market, transferring experienced personnel, or supporting employees who wish to work remotely from Switzerland, our tailored Employer of Record services offer the ideal solution. Partnering with us ensures smooth team expansion and effortless exploration of opportunities in Switzerland.

Now let’s clarify how an Employer of Record can help you in that process. In this article, we’ll give a quick overview of what the service entails, how the cross-border collaboration works and how an EOR compares to alternative strategies for global hiring.

What is an Employer of Record Service?

An Employer of Record service functions as a facilitator for employing individuals on behalf of an employer. This service provider assumes responsibility for the employees’ payroll, managing payments, taxes, and insurances, while the client and employees maintain their regular working relationship. In exchange for these services, the employer pays a fee to the EOR, covering the service itself along with employment-related costs.

Organizations opt for Employer of Record services for various reasons. Some startups, lacking internal HR or payroll departments, choose to fully outsource these functions. Additionally, foreign companies undertaking projects or expansions in new countries may leverage EOR services to ensure compliance with local regulations. Rather than establishing a new entity, they can utilize the infrastructure provided by the Employer of Record service provider, often known as an umbrella company.

The Employee-Employer-EOR Triangle

The setup can be visualized as a triangle, with the Employer of Record at the core, on one side the employer, and on the opposite side the employee. While the regular working relationship between the employee and employer remains unchanged, the EOR efficiently handles all legal and administrative aspects. This is made possible through clear contracts, allowing for smooth cooperation. This setup helps you grow your business in new countries, support your employees, and deal with any challenges easily.

employer of record

Let’s streamline the essential elements, breaking down what an Employer of Record does for you as an employer in a new country into four distinct sections. In simple terms, its adept handling of compensation and benefits, the tax advantages it provides, and the intricacies of visa and work permit applications. Find the summary below.

  1. Ensuring legal compliance: Facilitating seamless employment abroad. By employing the help of an EOR, you as an employee stick to the rules and laws of local employment
  2. Handling your benefits with ease: A stress-free guide for employers. An EOR will handle your employee’s compensation and benefits in a foreign land.
  3. Boosting your company’s benefits with tax perks: As skilled navigators within tax benefits an EOR and can advise your company if you qualify for them
  4. Visa and work permits: EOR as your company’s immigration ally. EOR functions as your company’s dedicated navigator, guiding you through the intricate bureaucratic processes of visas and work permits

EOR contrasted with alternative strategies for global growth

It’s time for some direct comparisons to clarify what an Employer of Record truly entails and what it doesn’t. In this segment, we’ll be examining the differences between EOR and other entities in the employment sector, emphasizing the distinctions that are crucial when venturing into international work.

Join us as we uncover the disparities between EOR and establishing a new business entity, collaborating with a staffing agency, and working with freelancers. We’ll provide you with concrete examples to empower you in making well-informed decisions about your employment strategies.

1. EOR provider vs. establishing a new company abroad

Choosing an EOR is a smart and efficient decision for your company entering a new country, because creating a new entity with legal, payroll, HR and finance can be expensive and time-consuming. On the other hand, opting for an EOR offers quick resolution, scalability, transparency, and cost-effectiveness. The EOR streamlines the employment process in a new country for a fixed monthly fee, covering administrative tasks, payroll, and potentially other expenses like visa and work permits. 

2. EOR vs. staffing agencies in global hiring

Staffing agencies mainly handle recruitment when a client needs a new employee, while EOR providers step in later. EOR is for clients wanting to employ someone in a different country, needing local employment but with flexibility in exploring new markets. Unlike staffing agencies, EOR providers don’t do recruitment; instead, they handle record-keeping, payroll, administration, and legal compliance in the new country. It’s a subtle difference highlighting the specialized role of EOR in ensuring a smooth employment journey abroad.

3. EOR vs. freelancing explained

Freelancing allows independent contractor status, offering flexibility but introducing uncertainties about project continuity and financial stability. An EOR becomes relevant later in employees’ careers, ensuring job security with existing fixed contracts. EOR handles compliance, visa applications, and provides tax advantages, making it an excellent choice for team international relocation while preserving job commitments.

Unlocking the benefits of employing in Switzerland through EOR

Rapid team integration is a major advantage for employers utilizing the services of Swiss Employer of Record. We are the specialized Employer of Record in Switzerland, well-versed in local employment laws, ensuring swift onboarding regardless of the employee’s origin. This proficiency becomes essential for employers aiming to seamlessly integrate new team members into their global workforce.

Ensuring compliance with local labor laws is another main benefit facilitated by EOR providers. We manage compliance issues, guaranteeing that the employment structure aligns with the specific labor laws of Switzerland. This meticulous approach helps employers sidestep legal complications, establishing a smooth and legally sound international workforce.

Cost-effectiveness emerges as a compelling factor for employers choosing an EOR solution, proving more economically viable compared to the complexities and expenses associated with establishing a new entity in a foreign country. This financial advantage becomes particularly evident when relocating a single employee to Switzerland, making Swiss Employer of Record a cost-effective and efficient choice for employers expanding globally.

Seamless global hiring with Swiss Employer of Record

Introducing Swiss Employer of Record, your seamless solution for effortless collaboration between global businesses and Swiss professionals. Our dedicated team is here to assist you at every stage, ensuring a smooth hiring process. Feel free to reach out with any inquiries. We’re here to help!

Embark on your journey today and have yourself or your team operational in Switzerland within days.

Written by

Written by:

Hans | International Payroll Specialist

As a Swiss-German international payroll specialist based in Zurich, he helps foreign businesses navigate the complexities of Swiss payroll regulations. With extensive knowledge of both local and international payroll systems, he ensures smooth financial transitions for companies entering the Swiss market. Outside of work, he's an avid hiker who loves exploring the Swiss Alps, and he's also a dedicated urban gardener, tending to an impressive rooftop garden where he grows a variety of herbs and vegetables.

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