Remote working is commonly referred to as the ability to work from anywhere, and that could also be in a separate jurisdiction from that of the employer. Partly in pursuit of an improved work-life balance, remote working is now seen as a major selling point for companies trying to attract skilled workers. One accelerator of this trend has been the COVID-19 pandemic, which literally forced many people to work from home. Necessity as the mother of invention so to speak!
Despite the obvious lifestyle and cost advantages, remote working has however, created a number of social and psychological challenges. These issues are could be compounded for workers looking to live in a different jurisdiction from their employer. Some obvious challenges here could include payment of taxes, and compliance to foreign employment laws for example.
This is where EOR or Employer of Record can help. An EOR is an organisation that serves as the employer for tax purposes while the employee performs work for a different company.
In Switzerland all EOR agencies must be a SECO-licensed to be compliant. The employer of record takes on the responsibility of traditional employment tasks from a HR perspective, whereas day-to-day management of the employee is still conducted by the client company. The Employer of Record also has the legal responsibility to manage payroll processing and tax in the country where the contractor works. Some further points to note with regards the Employer of Record capability are:
For the Company
- An EOR can hire international workers, perform background checks, oversee benefits and perform various other administrative tasks on behalf of the client company including: taking care of on-boarding , managing timesheets, supporting work permit application.
- Companies wishing to expand to new markets, can thus set up operations faster than incorporating an entity in the foreign jurisdiction and without running any compliance risks.
- Working with an EOR is also a cost-effective option for smaller companies without the infrastructure to manage local payroll, tax and immigration.
- An EOR also allows businesses to engage workers in countries where their own entity is lacking and where they do not wish to open one.
For the worker
- An EOR is a recognised legal framework for EU workers looking to return to their home countries to work or work from Switzerland.
- Partners of employees who have been offered a job role in Switzerland can continue to work for their current employer as a contractor based in Switzerland (assuming permit regulations are covered).
Using EOR services is a very easy and cost effective way for companies looking to expand and engage workers in different countries, without having their own presence there. There are numerous advantages for both larger and smaller companies with EOR. And as HR trends now point to people-centric strategies, automation and flexible schedules taking centre stage, using a reputable and licensed employment services provider with recognised EOR services certainly makes sense.
Fitting hand-in-glove with recent HR Trends, skilled workers are now looking to engage their services with companies that have a forward thinking and flexible approach to employment. Employer of Record fits the bill and acts as a mechanism for flexible HR strategies, satisfied workers and cost-effective remote working.
As Switzerland’s most trusted payroll provider, Accurity GmbH has over 20 years’ experience in changing times, providing clients with the best advice about their payroll, pensions and social security and living options ensuring they make the right decisions. If you would like to speak with one of our team of experts, simply contact us now to see how we can make Switzerland easy for you!