How can I work remotely in Switzerland?

The term "digital nomad" is often used to describe a remote worker who travels to different locations to work, sometimes from a coffee shop or co-working space. Some of these co-working spaces now even offer shared apartments to promote collaboration at work.

But whether you're a remote worker, a digital nomad, or a location-independent professional, there are still some controversial and perhaps even "old-fashioned" questions to consider when working remotely - no matter where that is. Not surprisingly, this includes the law of the land.

In this post, we take a look at different remote working scenarios in Switzerland and consider some of the implications for both the worker and the company that hires them.

The Federal Statistical Office (BFS) recently reported that the number of foreign nationals on the Swiss labor market increased by more than 9% to a total of 1.7 million people between the end of 2014 and 2019. This corresponds to around 20% of Switzerland's 8.5 million inhabitants.

Although some of these foreign workers are classified as digital nomads temporarily residing in one of the country's scenic locations, in most cases they are skilled professionals working on projects for a company for a specific period of time. This type of skilled “remote” work is not to be confused with that of the digital nomad.

Remote work scenarios in Switzerland

1. What are the main options?

• A foreign or Swiss citizen working for a company based in Switzerland. Provided that the employee has a valid residence and work permit for Switzerland, he or she can also work remotely under the work status "EOR" (Employer of Record) if this has been agreed with the customer company.
• Provided that the employee has a valid residence and work permit for Switzerland, he or she can work remotely for a foreign company: EOR or Employer of Record status or ANobAG status (explained later in this article).

2. Why should remote workers living in Switzerland want to work for a foreign company?

• A spouse or life partner has a job offer in Switzerland and the employee would like to accompany them and continue to work for their current (foreign) employer.
• An employee who was already employed by a company in Switzerland now wants to work for a foreign company but continues to live in Switzerland.
• A company based abroad would like to employ certain employees in Switzerland as employees or contractors without having to set up a Swiss branch.

3. What are the differences for the employee and the contracting company with the EOR and ANobAG work status?

• Employer of Record (“EOR”)
  • The "Employer of Record" is usually used if the customer company is based in Switzerland. However, it can be just as effective and legal if the customer company is a foreign company based outside Switzerland. This would be classified as remote work.
  • Here the employee (or his representative) negotiates with the client company the conditions of the employee's employment (time and daily/hourly/weekly rates).
  • Once this is agreed, the employee signs an employment contract with a Swiss personnel services company - such as Accurity - which in turn enters into a supplier contract with the customer company.
  • The worker is then leased to the contracting company (e.g. Accurity) in a process called "workforce leasing" and under a work status called "Employer of Record" or "EOR" for short.
  • The employee is hired for a fixed-term period as agreed by the employment company and undertakes to carry out the work for the client company under the agreed conditions and rates.
  • The employee has a Swiss employment contract and pays into the Swiss social security system, even though he works exclusively for the contracting company - which may be based in Switzerland or abroad.
• ANobAG
  • In this case, the employee is employed directly by the company based abroad.
  • The employee must pay all Swiss social security contributions himself (including the employer's share).
  • Once this is agreed, the employee signs an employment contract with a Swiss personnel services company - such as Accurity - which in turn enters into a supplier contract with the customer company.
  • In order to be within the framework of the ANobAG-Status In order to be able to work, the employee must register with the municipality or municipality of his or her place of residence and present a valid employment contract. Local authorities are responsible for the approval process and aspects such as sufficient financial resources are also taken into account before a work permit is issued (foreign workers).
  • If approval is granted, the employee must arrange for payment of all statutory insurance and social benefits, including (usually) a pension plan.
  • The employee is solely responsible for making monthly payments to the various social security authorities - although this is also a service offered by qualified SECO-licensed employment agencies such as Accurity.

4. There are some points to consider for both the customer and the employee in both work scenarios

• For the employee
• • The employee must have a correct work permit that is valid for the current situation.
  • The employee must ensure that he registers with the municipality or municipality of his place of residence and confirms in writing to the customer company that all documents are correct and that he has sufficient financial resources.
  • The employee should consider applying for both the EOR and ANobAG models SECO (State Secretariat for Economic Affairs) to engage a licensed employment agency. This can act as a local employer (EOR) or as a service provider (ANobAG).
  • The employee should keep records of all social security contributions and taxes, especially end-of-year payments.
• For the customer company based abroad
  • The company should know both the EOR and ANobAG models - advantages and possible impacts - in order to attract the employee to the right model, both for the employee and for the company.
  • The company should discuss and agree payment terms to potentially include employer benefits for either the EOR or ANobAG scenario.
  • Both models offer advantages such as: flexibility, agility and cost savings - and in both cases there is no need to open a Swiss branch.
  • There may also be some disadvantages for the company, but that depends largely on the relationship between the employee and the company.
    • An example of this would be the ANobAG model, where a disagreement between employee and company could lead to legal proceedings. According to international law, the place of jurisdiction is the place where the employee has his registered office - in this case Switzerland.
    • In the case of EOR, where the employee effectively has a Swiss employment contract and an employer, this reduces the risk for the client company, which is the labor provider and not the employer.

Conclusion

Provided that all federal and cantonal requirements are met, employees with a valid residence permit can work in Switzerland and live in Switzerland at the same time - either for a company based in Switzerland (as agreed) or for a company based in Switzerland Abroad. In both cases, employees pay into the Swiss social security system.