Our Employer of Record (EoR) / International PEO solutions enable staffing organisations and foreign businesses to expand into Switzerland and hire employees without the need to establish a new corporate entity. 

We take care of the entire employment relationship including managing all social security costs, social benefits and statutory rights afforded to the employee. The best part is that our EoR solutions are completely managed by the Capital GES team, allowing you to concentrate on international expansion. 

Interested in doing business in Switzerland? Here are the top five things you need to know: 

1. Social security
Social security comprises three tiers:
- Social security (AVS/AI)
- Mandatory occupational insurance
- Voluntary and optional retirement plan

Employer’s contributions total approximately 12-20% of the gross salary. Employee’s contributions total approximately 10%-17% of the gross salary.

Healthcare is covered by a mandatory personal health insurance policy.

2. Employment contract details
There are no specific rules governing the language for employment contracts as long as the employee understands the contract language. Bilingual wording is recommended for employees without the relevant language skills. Contracts must be in writing.

3. Fixed-term contract extensions
Fixed term contract should be linked to a specific task or justification, these contracts may be renewed once with any further renewal deeming the employment relationship to be indefinite.

4. Termination costs
Severance pay is due according to the notice period. Notice periods start from 1 months during the first year of employment; 2 months’ between the second and ninth year of employment and 3 months’ after the tenth. Additionally, the employer should pay any untaken leave by the employee.

5. Probation Periods
Probation is permissible up to 3 months.

If you are looking to expand your workforce in Switzerland (or any other of the 30 countries we operate in) without the burden of registering an entity and incurring significant expense and administration then please get in touch with Nick Broughton at Capital GES on +44 7539 337 563 or email Nick.Broughton@Capital-GES.com

Capital GES provides market-leading employment services to staffing companies, corporate clients and independent contractors in all sectors across Europe, Latin America and southern Africa. With headquarters in Switzerland and offices in USA, Brazil and UK, Capital GES provides services including Employer of Record, Contractor Payroll, Invoice & Pay and IC Compliance Checking.

For more detailed information on employment matters in Switzerland, including statutory benefits, employment regulations and contract requirements, download our free guide today or contact our team for a free consultation. ​​