How to hire in Switzerland through an EOR

Fixed-term contracts in Switzerland can't just chain together endlessly. You'll need a genuine reason to use one, or courts may reclassify it as indefinite, which brings unexpected termination obligations with it.

For most companies, individual employment contracts are the standard starting point. They let you tailor terms to the role while staying within the Swiss Code of Obligations. Collective agreements or standard contracts apply in certain sectors, like hospitality, so it's worth checking what covers your industry.

Swiss law doesn't require written contracts in most cases. A verbal agreement or email can technically be enough. That said, get it in writing anyway. It's the clearest way to avoid disputes over what was actually agreed.

At minimum, your contract should cover the names of both parties, start date, job role, salary (base and any bonuses), weekly hours, and an end date if it's fixed-term. Add overtime rules or a non-compete clause if relevant. There's no legal language requirement, but match the language to the canton and role: German, French, Italian, or English are all common.

Probation periods run up to 3 months. Either side can end the contract during this time with just 7 days' notice, and no reason is required. After probation, notice periods start at 1 month and increase with tenure.

Misclassifying a contractor as self-employed is one of the more costly mistakes you can make in Switzerland. Courts look at how the work actually operates, not what the contract calls it. If you control how, when, and where someone works, and they use your tools and work within your team structure, they're likely an employee in the eyes of the law.

If you get it wrong, you could owe back social security contributions going back up to 5 years, plus vacation pay, overtime, and potentially unfair dismissal damages. Fines from authorities can reach CHF 30,000 per violation, and the worker can sue for reclassification and lost benefits.

Non-compete clauses are enforceable, but only if they're reasonable. Keep them to 3 years maximum, tie them to specific roles or clients, and pay compensation of at least 50% of salary during the restriction period. Overly broad clauses tend to get struck down.

IP assignment needs to be spelled out in the contract. By default, employees own their inventions unless you agree otherwise in writing. If the role involves software or design work, make sure ownership is clearly defined upfront.

In practice, indefinite contracts with written terms are the safest default. Check whether any collective agreements apply to your sector. And if you're hiring remotely or across borders, sort out work permits early. It's much easier to handle before someone starts than after.

The legal minimum is 4 weeks of paid annual leave, but if you're hiring in Switzerland, especially in tech or finance, expect to offer 5 to 6 weeks to stay competitive.

Time off

Full-time employees are entitled to at least 20 days (4 weeks) of paid annual leave per year. Workers under 20 get 25 days (5 weeks). Leave accrues monthly, is pro-rated for partial years, and you set the schedule while taking employee preferences into account.

Employees must take at least 2 consecutive weeks off at some point during the year. Unused leave can carry over in many cases but expires after 5 years. You can't pay it out during employment, only on termination.

Public holidays vary by canton. Swiss National Day (August 1) is the only federally mandated paid holiday. Everything else depends on local rules, and you'll typically offer paid time off or comp time if someone works on a canton-level holiday.

All leave types

Here's what the law requires. Pay is full salary unless noted, and job protection applies during leave.

Maternity pay comes from mandatory insurance funded through premiums. There's no national paternity or parental leave yet, though some cantons and collective bargaining agreements do add it.

Mandatory benefits

Switzerland has a strong social security system, and costs are shared between you and your employees. There are no mandatory perks like meal vouchers, just the core contributions below.

Budget for 15 to 20% of salary in total employer costs. Health insurance is private but obligatory, so every employee needs a plan.

What people actually expect

Legal minimums won't get you far when hiring in Switzerland. Most workers expect 25 to 30 days of annual leave, and many firms give 5 weeks to employees over 50. Offering 5 to 6 weeks puts you in a much stronger position.

Topping up maternity pay to 100% is common, as is offering 10 to 20 days of paternity leave at progressive companies. If you're offering remote work, 2 to 3 days per week is typical, and a CHF 50 to 100 monthly stipend for home office setup is increasingly expected.

Supplemental private health insurance that covers deductibles is a popular benefit. In cities like Zurich, meal allowances of CHF 10 to 20 per day or public transport passes also make a difference. Sticking to the bare minimum tends to drive turnover, so it's worth understanding what local employers are actually offering.

Firing someone in Switzerland looks straightforward on paper, but courts often side with employees if you get it wrong. Abusive dismissals can cost you up to six months' salary in damages, plus notice pay. Document everything carefully to avoid claims.

Firing someone

You can terminate for any reason, or no reason at all, as long as it's ordinary termination with notice. You don't need to justify it upfront. But it can't be abusive under the Code of Obligations.

Valid grounds include poor performance, redundancy, or restructuring, if documented. For immediate termination without notice, you need serious cause like fraud or gross misconduct, and usually a prior warning. The bar is high.

Unfair dismissal applies if you fire for protected reasons: pregnancy or within 16 weeks post-birth, illness (30 days in year 1, 90 days in years 2-5, 180 days after), military service plus four weeks before and after, or exercising legal rights. It's also abusive to fire someone to avoid paying bonuses or pensions, or during selective layoffs. The employee needs to show it's plausible; you need to show it was legitimate.

Protected categories include age, race, gender, disability, and personal traits. Swiss courts tend to lean employee-friendly. The challenge window is 180 days, and outcomes often favor employees where records are poor. Probation is different: seven days' notice, fewer protections, except pregnancy still applies.

Notice periods

Notice runs to month-end, except during probation. Both you and the employee follow the same statutory periods, unless your contract sets longer ones (minimum one month post-probation). Here's how it breaks down:

Cantonal rules or collective agreements can override these defaults. Serve notice in writing; it takes effect on physical receipt.

Severance

There's no statutory severance requirement in Switzerland. It's not mandatory unless your contract, collective agreement, or social plan says otherwise. It's more common in senior roles or mass layoffs, but it's not the norm.

Courts don't award it for ordinary terminations. For abusive or unjustified immediate dismissals, you're looking at up to six months' salary, based on the severity of the abuse, tenure, age, job prospects, and your level of fault. There's no fixed formula beyond that. In redundancy situations, you might negotiate severance to avoid disputes.

Work permits and visas

You can hire foreign nationals through an EOR. The EOR acts as the legal employer and sponsors the permit, which you can't do without a Swiss entity. EU/EFTA citizens have easier access via quotas; non-EU nationals face stricter annual caps that vary by canton.

The main permit categories are: L permit (short-term, up to 1 year), B permit (initial residence and work, renewable), and G permit (frontier workers). For skilled non-EU hires, you'll need to pass a labor market test proving no Swiss or EU candidate is available. Key requirements include a job offer, matching qualifications, and a salary at market rate. Timelines run 2-3 months for EU nationals and 3-6 months for non-EU.

There's no digital nomad visa in Switzerland. The EOR handles sponsorship and applications through cantonal authorities and the State Secretariat for Migration. Renewals are tied to employment, and a job change typically needs new approval. Quotas tighten each year, so apply early.

A few other things worth knowing

Switzerland's revised Federal Act on Data Protection (effective 2023) mirrors GDPR in several ways: get consent for employee data, appoint a representative if required, and report breaches within 72 hours. Fines can reach CHF 250,000. Your EOR will typically manage HR data flows, but it's worth knowing what's required.

Trade unions exist, but coverage is low outside sectors like construction or hospitality. Around 30% of workers fall under collective bargaining agreements (CBAs), which can set higher standards on pay, hours, and termination. Check whether your role falls under one, because if it does, it's binding.

Terminations must be issued as written physical notice. There aren't major regulatory changes expected between 2024 and 2026 on core hiring, but watch for pension reforms that affect protections for older workers. Written form rules are also being strengthened for 2026 contracts. Cantonal rules vary, so don't assume what applies in Zurich applies in Geneva.

To stay on the right side of things: document performance issues early, use an EOR for permits and compliance, and check whether any CBAs apply. One mishandled termination can lead to court, fines, and reputational damage. Get local advice before you act.