Hiring in Switzerland

The terms set out role, salary in CHF, working hours, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

English is widely used for commercial roles, alongside German, French or Italian depending on the region.

Fixed-term contracts are permitted, but chained renewals without a genuine reason risk being treated as indefinite and most EORs default to indefinite terms.

Set probation from day one. It cannot be stretched beyond 3 months by agreement, only by absence through illness, accident or a statutory duty such as military service.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Overtime is paid at 1.25 times the hourly basic rate or offset with time off by agreement, and hours above the statutory maximum are capped at 170 a year.

Senior executives fall outside the Labour Act's hours rules, and most professional contracts fold overtime into salary. Put the position in writing either way.

Market practice for professional roles is 25 days, above the statutory floor, so quote the market figure when you budget.

Sick pay runs for a limited period that grows with tenure, and most employers replace it with daily sickness benefit insurance. Maternity leave (14 weeks) and paternity leave (2 weeks) are paid at 80% through the state income compensation scheme, so confirm whether the EOR tops up to full salary.

Either side may terminate on notice to the end of a month without stating a reason, though the employee can request one in writing. Notice given during sickness, accident, pregnancy or military service is void or paused, so check for protected periods before you act.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and any contractual severance. Abusive dismissal claims can cost up to six months' salary, so keep a documented reason.

Pension contributions rise with the employee's age, so an older hire costs more on the same salary. Daily sickness benefit insurance and pension cover above the statutory minimum are standard for professional roles even though they are not mandatory.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer contributions add roughly 15% to 20% on top of gross salary, depending on age, canton and pension plan. That is before the EOR fee.

The 13th salary is the trap. Many Swiss contracts pay the annual salary in 13 instalments, so confirm whether a quoted figure is monthly or annual before you budget.

Swiss staff leasing rules limit a licensed EOR to people who already have open access to the labour market. That means Swiss nationals, EU and EFTA nationals and holders of permits that allow a free change of employer, whichever provider you choose.

Since January 2026, permits for EU and EFTA nationals on leasing contracts under a year match the length of the engagement. Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Transfers to countries without a Swiss adequacy decision need safeguards such as standard contractual clauses.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation takes a few weeks and a GmbH needs CHF 20,000 in share capital, but the running cost is the point: a Swiss-resident signatory, accounting, an audit unless you qualify to opt out, social insurance registrations and payroll software set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.