Employment via Employer of Record in CH

Wesomi · 1 2023 15:30

Hi all,

Does anyone have experience being hired via an employer of record in Switzerland?

Example: Germany wants to employ you in Switzerland. There is no entity in CH, only way to do it via an intermediary (a swiss payroll company). Contract is given by the local company.

Has anyone had any issue getting a Permit B (EU) in this scenario?

I am being told authorities see this as not proper employment and rejects the permit.

snouchmirish · 1 2023 16:05

Permits issued in Switzerland must be grounded in the Swiss economy, so yes if you are the primary permit holder, then it is possible it will be rejected because there is no right to remote work under the bilaterals.

Stausiel · 2 2023 06:35

Not true

Schlussfolgerung
Arbeitnehmer im Homeoffice, die eine Tätigkeit für einen ausländischen Arbeitgeber, ohne direkten Bezug zum Schweizer Arbeitsmarkt und ohne Kundenkontakt in der Schweiz ausüben, werden gemäss konstanter Praxis als Nichterwerbstätige nach Art. 24 Anhang I 3/5 FZA qualifiziert . Das durch die Tätigkeit für einen ausländischen Arbeitgeber erzielte Einkommen wird an die Berechnung der genügenden finanziellen Mittel bei der Zulassung als Nichterwerbstätige angerechnet

Conclusion
Conformément à une pratique constante, les travailleurs en télétravail qui exercent une activité pour un employeur étranger qui n’est pas directement liée au marché du travail suisse et sans contact avec la clientèle en Suisse sont qualifiés de personnes sans activité lucrative au sens de l’art. 24, annexe I, ALCP. Le revenu obtenu par l’activité pour un employeur étranger est pris en compte dans le calcul des moyens financiers lors de l’admission en tant que personne sans activité lucrative

https://www.sem.admin.ch/dam/sem/de/…tstaaten-d.pdf

Ternsh · 2 2023 07:24

And in English:

Home office workers who work for a foreign employer without a direct link to the Swiss labor market and without customer contact in Switzerland are qualified as non-employed persons under Art. 24 Annex I 3/5 FMPA according to established practice. The income generated by the activity for a foreign employer is taken into account in the calculation of the sufficient financial means for admission as a non-employed person.

Wesomi · 2 2023 07:49

Does this mean that a permit will be issued and not rejected despite the fact that EOR is used?

Ternsh · 2 2023 12:33

No. It means:

The income generated by the activity for a foreign employer is taken into account in the calculation of the sufficient financial means for admission as a non-employed person.

If they decide it's not enough, then you won't get a permit.

Stausiel · 2 2023 12:53

The amount that’s enough is basically just above income threshold that would qualify a Swiss resident for social help, talking about 2500 CHF per month for a single person (more with children and dependent family members)

atura · 3 2023 21:45

I have a non-EU friend with an open B permit who successfully moved from a real Swiss employer to an employer of record in CH (they actually work for a startup in an EU country). Their B permit has been successfully extended since. But as it was an open B permit there was no AWA scrutiny during renewal.

I don't think there's a single chance in hell for an initial non-EU permit being approved with an employer of record situation.

As for an initial EU permit I think it's a gray zone. You'll be getting paid by a local entity and pay local taxes after all. There would definitely be no issue switching to an EoR on an existing EU B permit.