An employer of record (EOR) in Switzerland is a company that hires workers on behalf of another business. This is often a service offered by a service provider to enterprises that prefer staff leasing to traditional employment.
Below, our law firm in Switzerland explains the concept of employer of record, or PEO, the short form in Swiss.
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Services covered through an employer of record in Switzerland
A Swiss PEO is usually a company offering its services to foreign investors who do not need to set up businesses here but want to carry out specific operations by other means. For this purpose, they can use an employer of record that:
- hires the specific number of employees on behalf of the client;
- complies with the local employment rules in respect to payroll and other HR matters;
- onboards and offboards employees, as requested by the client.
In this sense, the client will enter an agreement with the PEO in Switzerland.
Our Swiss lawyers can explain when and how an EOR can be used, or better said what the best conditions to rely on such a service are.
Why is this service useful in Switzerland?
Employers of record are quite popular in Switzerland for several reasons. Among them, the fact that this country has a particular division, namely its cantons. This means that, apart from federal rules, companies must also abide by cantonal rules. In terms of employment, they usually cover taxation, but most importantly obtaining work permits for foreign employees. With the help of a PEO, this last step no longer needs to be completed.
Even foreign investors who decide to open companies in Switzerland in one canton need to comply with the requirements in other cantons, should they decide to expand their activities.
You can rely on our lawyers in Switzerland for information on taxation or employment rules in specific cantons.
How to choose a Swiss employer of record
You do not need to worry about finding a suitable employer of record, as such companies are subject to strict registration criteria. Here is a general idea on how the Swiss authorities enable the operations of EORs:
- they must be registered with the Trade Register;
- they must appoint at least 1 person who will be registered with the Commercial House as a representative of the EOR;
- the same person must also have a signing authority and be of good character;
- the PEO must also pay a cantonal license ranging from CHF 50,000 to CHF 150,000, depending on the canton it is registered in.
It is also useful to note that Switzerland imposes collective employment contracts for staff leasing since 2012. You can obtain more information on this regulation from our Swiss law firm.
Advantages of an EOR in Switzerland
Working with an employer of record in Switzerland definitely comes with several advantages, among which we remind the following:
- you can hire employees within a few days from signing the contract;
- the Swiss PEO will be liable for any employment matter;
- it will provide you with the requested number of employees;
- you can use such a service in all cantons;
- the EOR will also file employment-related tax documents on your behalf.
Employment statistics in Switzerland
If you are planning to use the services of an employer of record in Switzerland, here is some useful information on the labor market here:
- in the first quarter of 2024, there were 5.309 million persons hired all over the country;
- this is an increase of 1.4% compared to the number of people hired in the same period in 2023;
- at the level of 2023%, 9.1% of the active population was self-employed.
Our lawyers are also at your service if you want to open a bank account in Switzerland. Feel free to contact us for a personalized approach, no matter if you are interested in a PEO or another solution.