Switzerland is an attractive destination for businesses looking to expand in Europe. Its stable economy, skilled workforce, and business-friendly environment are full of opportunities. But when you’re entering the Swiss market, you’ll quickly realise that local employment laws can be a hurdle.

Imagine you’re eager to expand, but the thought of navigating Swiss labour regulations feels overwhelming—like trying to steer a ship through uncharted waters. This is where a specialised Employer of Record in Switzerland can make a world of difference. An Employer of Record (EOR) handles employing staff’s legal and administrative tasks, allowing you to focus on your core business. Here’s how to get started with an EOR in Switzerland in 10 easy steps.

1. Understand the role of an EOR

Before jumping into the process, let’s clarify what an EOR does. In Switzerland, an Employer of Record is the legal employer for your team on paper, while you retain control of their day-to-day activities. The EOR handles all the heavy lifting—payroll, taxes, benefits, and compliance with Swiss labour laws. Think of it like having a local HR team without setting up your own entity.

Swiss law also includes strong employee protections—like data privacy and anti-discrimination measures—which your EOR will help you uphold. This way, your business remains compliant while you focus on driving performance.

2. Evaluate your business needs

Why Switzerland? Is it to test the waters before establishing a permanent entity? Or maybe you’re looking to tap into local talent without the hassle of setting up a subsidiary? Clarifying these goals will help you find the right EOR partner and the services you’ll need.

3. Choose the right EOR provider

Not all EORs are created equal, so choosing the right partner is critical. Look for an EOR with a deep knowledge of Swiss labour laws, a local presence, and a strong reputation. If you’re looking for a scalable solution that grows with your business, check client testimonials and service offerings to see if they fit the bill.

Swiss taxes can vary by region, and your EOR should help you navigate these complexities. They will also handle all tax reporting, compliance, and the occasional audit, ensuring your business stays in line with Swiss regulations.

4. Discuss compliance and legal requirements

Swiss employment laws are no joke—contracts, employee rights, and terminations are heavily regulated. Your EOR partner will help ensure everything aligns with local laws, from employment contracts to social security and pensions. It’s a real time-saver when you’re busy running the show.

Keep in mind that Swiss employers must provide mandatory benefits like social security, pensions, and paid leave. Whether you’re offering fixed-term or permanent contracts, your EOR ensures all regulations are met so you can focus on your business without worrying about the legal intricacies.

5. Plan your budget

Costs can add up, but an EOR can help you budget accurately. Besides employee salaries and benefits, there’s a management fee, but the good news is that it’s often more cost-effective than setting up a complete entity in Switzerland. Your EOR can break down these expenses so you can plan ahead.

6. Draft a service agreement

Once you’ve chosen an EOR, it’s time to seal the deal with a service agreement. This contract should lay out the responsibilities of both parties, including payroll, taxes, and compliance. Ensure service levels, costs, and termination terms are clear. Transparency from the start will save you headaches later.

Swiss law also has strict rules about notice periods and termination. For example, termination isn’t allowed during maternity leave or illness. Make sure your service agreement reflects these legal requirements to avoid complications down the road.

7. Onboard your employees

Your EOR will handle onboarding, ensuring all legal documents are signed, and employees are registered with local authorities. From payroll setup to social security registrations, they’ve got it covered. All you need to do is manage your employees’ daily tasks and performance.

8. Manage employee relations

While the EOR is your employees’ legal employer, you’re still in charge of managing them day-to-day. Keep open communication lines with your team and the EOR to ensure everything runs smoothly. It’s a partnership—you focus on performance, and the EOR handles compliance.

9. Monitor compliance and performance

It’s essential to keep tabs on your EOR’s performance. Ensure they’re processing payroll on time, handling tax filings correctly, and staying up to date with Swiss labour laws. Regular reports and updates will give you peace of mind, knowing everything is on track.

Authorities may conduct audits or inspections in Switzerland, so it’s crucial to have an EOR that handles all reporting and stays prepared for such situations.

10. Scale your operations

Switzerland is a great place to grow, and with an EOR, scaling is simple. Whether you need to hire more people or eventually set up a permanent entity, your EOR can help with a smooth transition and ensure compliance every step of the way.

Start hiring in Switzerland today

Expanding into Switzerland comes with its fair share of challenges—strict labour laws, complex taxation, mandatory benefits, and potential audits. Navigating these regulations on your own can feel overwhelming and time-consuming. But the good news is that partnering with Swiss Employer of Record can resolve all these issues.

An EOR takes the weight off your shoulders, managing compliance with Swiss employment laws, handling payroll, taxes, and benefits, and ensuring everything is done by the book. They act as your local HR expert, so you don’t have to worry about setting up an entity, dealing with legal complexities, or risking non-compliance.

With a trusted EOR, you’ll have peace of mind knowing that:

• All contracts and benefits are compliant with Swiss laws.
• Taxes and social security are taken care of, regardless of regional differences.
• Employee rights are upheld, ensuring a smooth and positive work environment.
• You can scale quickly without getting bogged down by administrative headaches.

So, why struggle with the intricacies of Swiss regulations when a specialised Employer of Record in Switzerland can manage everything for you? Let us help you overcome these challenges, allowing you to focus on what truly matters—growing your business in one of Europe’s most attractive markets.

Contact us today to discover how Swiss Employer of Record services can simplify your expansion and relieve the stress of hiring in Switzerland.

Start hiring in Switzerland

Partnering with an Employer of Record in Switzerland allows your business to enter this lucrative market with minimal risk and hassle. By following these ten steps, you can ensure a smooth and compliant operation while focusing on what matters most—growing your business. An EOR handles Swiss employment’s complexities, allowing you to explore new opportunities and scale your business efficiently. Contact us today to learn more about how our EOR services can benefit you.