Can you hire employees in Switzerland without a legal entity?

Yes, through an Employer of Record (EOR). The EOR becomes the legal employer in Switzerland, handling contracts, payroll, taxes, and social security, while you manage the employee’s day-to-day work.

How long does it take to hire employees in Switzerland?

Typically 1–2 weeks through an EOR, depending on role and documentation.

What employment contracts are required in Switzerland?

Employment contracts must clearly outline salary, working hours, benefits, and notice periods. They are usually provided in a local language (German, French, or Italian).

Can a PEO help hire contractors in Switzerland?

Yes, but Switzerland has strict classification rules. Misclassification can lead to fines and back payments, so many companies use an EOR instead.

How does payroll work in Switzerland?

Payroll is usually monthly and includes: Gross salary Income tax (if applicable) Social security (AHV, pension, unemployment) An EOR manages all calculations and filings.

How often are employees paid in Switzerland?

Employees are typically paid monthly, often with a 13th-month salary included in contracts.

Does a PEO/EOR manage taxes and social contributions?

Yes, PEO/EOR manages: AHV/AVS (social security) Unemployment insurance Pension contributions Withholding tax where applicable

Can payroll be run in local currency?

Yes, Swiss payroll is run in Swiss francs (CHF).

Is using an Employer of Record legal in Switzerland?

Yes, EORs are a compliant way to hire without setting up a local entity, as they act as the legal employer.

What labour laws apply to foreign companies hiring in Switzerland?

Swiss labour law applies in all cases, including: Contracts and working conditions Social security and benefits Termination rules Cantonal regulations (vary by region)

What are the risks of misclassification in Switzerland?

Misclassification can result in: Back payments of contributions Penalties and fines Legal disputes Switzerland enforces strict compliance.

Is there a minimum wage in Switzerland?

There is no national minimum wage. Salaries are set by canton or industry agreements.

Do employment laws vary by region?

Yes, Switzerland has 26 cantons, and tax rates, benefits, and allowances can differ significantly by location.

Hire Employees in Switzerland with an Employer of Record

Hiring employees in Switzerland does not require establishing a Swiss legal entity.

With EuroDev's Employer of Record (EOR) services in Switzerland, international companies can legally hire employees in Switzerland, process Swiss payroll, administer benefits, and maintain compliance with Swiss labor and tax regulations while the EOR acts as the local employer on behalf of the client company.

We manage:

Swiss employment contracts
Payroll and tax administration
Social security contributions
Ongoing HR and labor law compliance

Talk to our EOR experts today

Hiring Employees in Switzerland with an Employer of Record

An Employer of Record in Switzerland enables companies to hire employees without opening a local entity. The EOR manages payroll, contracts, taxes, and compliance, while your company oversees day-to-day work.

How hiring in Switzerland through EuroDev works

1. Employee selection

Your company selects the employee or candidate you want to hire in Switzerland.

2. Employment contract setup

The EOR prepares a locally compliant Swiss employment agreement that aligns with Swiss labor law, cantonal requirements, and applicable collective bargaining agreements.

3. Payroll & tax administration

Monthly payroll is processed in Switzerland, including income tax withholding where applicable, pension administration, and social insurance contributions.

4. Ongoing compliance & HR support

The EOR manages onboarding, statutory leave administration, employee lifecycle management, and labor law compliance throughout employment.

Employer of Record vs Setting Up a Legal Entity in Switzerland

When an EOR is the right choice:

Expanding into Switzerland quickly
Hiring a small or remote team
Testing the Swiss market before long-term investment
Avoiding administrative complexity and incorporation costs
Reducing employment and payroll compliance risk

When a local entity makes sense:

Building a large long-term workforce in Switzerland
Requiring a permanent commercial presence
Managing payroll and HR internally
Operating regulated activities requiring local registration

Key differences at a glance

	Employer of Record	Local Entity
Setup time	Weeks	Several months
Legal responsibility	EuroDev	Your Company
Payroll & Compliance	Managed by EuroDev	In-house
Upfront costs	Low	High
Risk exposure	Reduced	Full exposure

Employment Contracts Through a Swiss EOR

Permanent (Indefinite) Employment Contracts

Indefinite contracts are common in Switzerland and continue until terminated by either party. Swiss employment law is generally more flexible than many EU systems, but contracts must still comply with the Swiss Code of Obligations, Labour Act, and any applicable collective or standard employment agreements.

Key characteristics:

No predefined end date
Statutory employment rights apply
Termination is generally possible with notice, without needing a formal cause
Statutory notice periods apply unless validly modified
Probation period is usually 1 month by default and may be extended up to 3 months by written agreement
No general statutory severance entitlement in most ordinary dismissals
Can be full-time or part-time
Protection applies against abusive dismissal, untimely termination, discrimination, and violations of mandatory law

When hiring through a Swiss EOR, the EOR remains the legal employer and must ensure the contract complies with Swiss employment law and any applicable cantonal or sector-specific rules.

Fixed‑Term Contract Rules (Temporary Contracts)

Fixed-term contracts are permitted in Switzerland and may be used for temporary needs, project-based work, replacement roles, or other defined periods.

Key rules include:

The contract must have a defined end date or objective end point
It normally ends automatically at expiry without notice
Ordinary early termination is only possible if expressly agreed or allowed by law
If employment continues after the fixed term without objection, it may convert into an indefinite contract
Repeated fixed-term contracts can be challenged if used to avoid employee protections
Just-cause termination remains possible in serious cases
Notice periods typically apply to the end of a calendar month unless otherwise agreed.

Although there is no statutory limit on consecutive fixed‑term contracts, abusive chain contracts are risky and should be avoided.

Termination, Notice Periods & Severance in Switzerland

Swiss employment law does not recognize “at-will” employment. Terminations must comply with statutory notice requirements and employee protection rules.

Probation Periods

In Switzerland, probation periods are commonly used at the start of employment to assess suitability for the role. Unless otherwise agreed, the statutory probation period is one month, though it may be extended to a maximum of three months in the employment contract. During probation, either party may terminate the employment with short notice, provided the termination is not discriminatory or abusive.

Notice periods

During probation: 7 days
First year of service: 1 month
Years 2–9: 2 months
10+ years of service: 3 months
Notice periods may be extended by contract or collective agreement
Payment in lieu of notice is permitted
Immediate termination without notice is allowed for serious misconduct
Notice periods typically apply to the end of a calendar month unless otherwise agreed.

Severance pay

No general statutory severance entitlement for ordinary dismissals
Severance may apply if agreed contractually or under a collective agreement
Employees may claim compensation in cases of abusive dismissal

EuroDev guides you through termination procedures to ensure compliance and risk mitigation.

Payroll, Employer Costs & Working Hours in Switzerland

Payroll costs when hiring through an EOR in Switzerland

When hiring employees in Switzerland through an Employer of Record (EOR), employer costs are typically around 12%–18% on top of gross salary, depending on pension contributions, accident insurance, canton, and employee age.

This covers mandatory employer social contributions and statutory insurance costs.

Example:

Average annual gross salary: CHF 85,000
Estimated total employment cost: CHF 95,200 – CHF 100,300

An EOR manages payroll calculations, tax withholdings, social security filings, and statutory payments in compliance with Swiss labor law.

Social Security & Employer Contributions in Switzerland

When hiring employees in Switzerland through an Employer of Record (EOR), the EOR manages all social security registrations, payroll filings, and statutory payments as part of the employment process.

Employer responsibilities handled by EuroDev

Registering employees with Swiss social security authorities
Monthly payroll processing and reporting
Withholding employee contributions
Paying employer social security and insurance contributions

Typical employer contribution structure

Old Age & Survivors Insurance / Disability Insurance (AHV/IV/EO): ~5.3%
Unemployment insurance (ALV): ~1.1%
Occupational pension contributions (BVG): variable, typically ~5%–10%
Accident insurance: variable depending on role and insurer
Family allowance contributions: ~1%–3% depending on canton

Total estimated employer contribution: ~12%–18% on top of gross salary

Working Hours & Overtime in Switzerland

Standard full-time working schedule: typically 40–42 hours per week
Maximum legal working hours:
- 45 hours per week for office, technical, and industrial employees
- 50 hours per week for other sectors
Overtime rules and compensation may be governed by employment contracts or collective bargaining agreements (CBAs)
Overtime may be compensated financially or with equivalent time off
Certain senior or managerial roles may be exempt from overtime provisions

EuroDev ensures working‑time rules are correctly applied based on contract type and applicable agreements.

Paid Vacation Leave & Public Holidays

Employees hired through an EOR in Switzerland are entitled to statutory paid leave. Leave entitlements and public holidays are managed in accordance with Swiss labor law and cantonal regulations.

Annual leave

Minimum: 20 working days per year
Employees under 20 years old are entitled to at least 25 working days
Leave may be split, but at least two consecutive weeks must generally be granted together

Public holidays

Public holidays vary by canton
Switzerland has 1 federal public holiday (Swiss National Day)
Most cantons recognize approximately 8–12 public holidays per year depending on the region

Maternity & Paternity Leave in Switzerland

Switzerland does not apply equal parental leave entitlements. Statutory maternity leave is significantly longer than paternity/co-parental leave

Maternity leave

14 weeks total
Leave begins immediately after childbirth
Leave is paid at 80% of the employee’s average salary, subject to a statutory cap of CHF 220 per day
Paid through Swiss social insurance / income compensation scheme
Employer top-up is not mandatory unless required by contract or collective agreement

Paternity leave

2 weeks total / 10 working days
Leave can be taken in one block or as individual days
Must be taken within 6 months after birth
Leave is paid at 80% of the employee’s average salary, subject to a statutory cap of CHF 220 per day
Paid through Swiss social insurance / income compensation scheme

EuroDev ensures parental leave is registered, reported, and paid correctly in line with current Swiss regulations.

Why Companies Choose EuroDev for EOR in Switzerland

No need to establish a Swiss local legal entity

Fully compliant employment and payroll execution
Local expertise in Swiss labor law
One point of contact for HR, payroll, and compliance
Scalable hiring as your business grows

Hire Employees in Switzerland with Confidence

Switzerland has well-defined employment regulations and strong employee protections. Employment “at will” does not apply when hiring through an EOR in Switzerland.

EuroDev helps international companies hire employees in Switzerland quickly, compliantly, and without unnecessary risk.

Whether you are hiring your first employee or expanding an existing team, our EOR and PEO services give you the flexibility to grow without administrative burden.

Get in touch with our team today to discuss hiring in Switzerland.