CONVINUS Services and Guide - Assignments to Switzerland

Guide:
Including
to Switzerland
Assignments
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Our Mission
“CONVINUS is a leading specialist in the field of international employee
assignments and cross-border employment, and is the only provider in Switzerland
with a comprehensive range of services in this area.”
We assist our domestic and international clients from all industries and regions
with global mobility, both in- and outbound, with our comprehensive range of
services in Switzerland and via the CONVINUS Global Network (CGN) worldwide.
Our work centres on our clients, who we advise personally, individually, and
competently, and who we offer our first-rate services in a relationship based on
mutual trust and the highest level of confidentiality.
Our organizational structure is characterized by intentionally flat hierarchy levels.
These provide all employees of the individual expert teams with short decisionmaking
paths and the necessary flexibility and speed to be able to react to the
rapidly changing requirements of our clients at short notice. At the same time, it
enables us to react as quickly and as best as possible in the interest of our clients,
both efficiently as well as effectively.
We would also love to support you!
Best regards from Zurich
CEO

services and solutions require not
First-rate
highly involved employees who are
only
specialists, but also an internal,
distinguished
sharing of know-how.
intensive
Our Team
Our employees possess many years of experience in the industry. Through
continuous internal and external further training (domestic and international) , a
corporate culture characterised by open and direct communication, short
decision-making paths, flat hierarchies, and an actively embraced internal knowhow
transfer management, we intensively promote this aspect in order to be able
to offer our clients innovative services management, we intensively promote this
aspect in order to be able to offer our clients innovative services and professional
solutions at the highest level of competency.
Our highly motivated team has one goal:
To provide you, with the best service at all times, and to impress you with
what CONVINUS has to offer!
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and trusted relationships with our
Long-term
are the basis for our success and
clients
leading position in the field of
CONVINUS’s
assignments, both in Switzerland
international
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Our Values & Culture
and internationally.
Confidentiality
All documents and information which we receive during our collaboration are
handled in the strictest confidence and always remain secret.
No exit barriers
Our clients should be able to freely choose their preferred service provider at their
own discretion. It is in our professional interest to recommend to our clients the
most efficient and expedient solution, even if this would result in a reduction in or
even the end of our partnership.
Integrity
We undertake to uphold the highest standards for personal and professional integrity
and trustworthiness.
Independence
CONVINUS’s great strength lies in its independence. Through consistently high
performance, organic growth, and an extremely motivated, committed, and
professional team, CONVINUS has worked its way up to become THE address in
Switzerland for all topics related to cross-border employment.
We proactively develop individual, creative, and forward-thinking solutions, and
always help our clients remain several steps ahead. Our employees view
themselves as an extension to our clients’ teams in order to achieve the best
possible results for them in a cost-conscious manner and to get to the defined
finish line together.

more than 20 years, we have assisted over
In
of our domestic and overseas clients with
2,000
services worldwide. We consistently tailor
our
services to the individual needs of our clients
our
that they are able to utilize our solutions
so
and efficiently.
successfully
Our Clients & Industries
Our client base ranges from small and medium-sized enterprises (SMEs) to
international and multinational corporations. Apart from our corporate clients for
which offer a "one-stop-shop"-service, we also provide support to specialist and
leadership personnel who themselves require assistance or would like a second
opinion. In the areas of taxes and social security, we advise international private
individuals, in particular expatriates, with the filing of their tax returns, and provide
them with advice on complex tax and social security issues in domestic and
international contexts.
Collaboration with global immigration and relocation providers as well as international
law & consulting firms: For many years now, we have been THE preferred
Swiss partner for numerous global relocation / destination service companies and
global vendors who greatly value our extensive know-how, professional case
management, and in particular our highly motivated commitment in all issues
related to the international assignment of employees in the context of a professional
and trusted partnership.
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consulting approach is based on an
Our
cooperative partnership with our
intensive,
This fair, team- and at all times goaloriented
clients.
approach leads to optimal solutions for
clients. We stand for the implementation of
our
innovative, and holistic services and
individual,
that are tailored specifically to the
solutions
of our clients, with the goal of achieving
needs
success for them. Our clients’ success
long-term
our top priority.
is
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Our Consulting Approach
In this regard, the following 7 aspects are of particular importance for CONVINUS:
Independence, objectivity, and confidentiality
Solution-oriented
Integrated
High quality standards
Absolute customer orientation
Open and clear Communication
Collaborative
Flat hierarchies, short decision-making paths and personal, creative leeway provide
the necessary space for each individual’s own creativity, which translate into
optimal ideas and solutions for our clients.
In this regard, there is one decisive goal for us:
We want to impress our clients with our services!

Global Network - THE global network
CONVINUS
international assignments since 2002 -
for
in over 100 countries around the
represented
world.
Our CONVINUS Global Network
The CONVINUS Global Network (CGN) was founded in 2002 by CONVINUS in order to
reliably and professionally cater to internationally active CONVINUS clients with
the highest degree of quality, reliability, and speed with the help of an extensive
worldwide network.
The members of the CONVINUS Global Network (CGN) were hand-picked and tested
by CONVINUS based on high quality and service criteria as part of a sophisticated
selection procedure.
Upon fulfilling the high quality and service criteria, these companies were invited
to become members of the CONVINUS Global Network. The members of the CGN
are among the best leading consulting firms and chancelleries in the countries and
cities where they are located.
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offers companies holistic and
CONVINUS
support with the organization
comprehensive
execution of international assignments and
and
employments.
cross-border
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Our Services
We always remain available over the long term
as a competent “sparring partner”.

and according to your needs, we will
Individually
with you every step of the way, from the first
be
of individual employees to the drafting
postings
posting guidelines and the execution of
of
posting situations for “multi-state
complex
workers”.
CROSS BORDER EMPLOYMENT / ASSIGNMENTS
When doing so, we cater specifically to your current posting cases to offer tailored
solutions for the overseas deployment of your employees and to provide you with
essential support in all administrative, operative, and strategic aspects of international
assignments. Working together with you, we will structure the international
assignment or cross-border employment processes in your company.
In addition to an efficient case management, we will also handle the cost structures
and process workflows.
Through our continuous insight into a wide range of companies and industry
sectors, we are constantly on the pulse of the times where international assignments
management is concerned, and are familiar or cross-border employment the
current best practices.
Our key consulting services:
Efficient and professional creation of assignment management or cross-border
employment
Managing and optimizing complex international assignment or cross-border
cases
Acting as a contact and liaison between the human resources department,
employee, and domestic as well as international service providers
Organization of work processes
Execution of analysis and calculations as well as the optimization cost
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- the leading expert for work
CONVINUS
and business visas in Switzerland
permits
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VISA & IMMIGRATION
and worldwide!
We proactively advise and assist companies with selecting the right permit, the
rapid and efficient obtaining of permits, and handle the entire permit process,
including the visa application and registering with the local authorities in the
assignment country.
We do not only handle the arrival and permit application process in Switzerland,
but also worldwide. Our experts and the CONVINUS Global Network (CGN) allow us
to advise you individually and pragmatically regarding all permitrelated aspects.
We provide you with advice along the entire permit application process and
always begin with an evaluation of the various options. Due to our networked
consulting approach, we also take into consideration other legal aspects, such as
income taxes and social security.
Our key consulting services:
Identifying permit options
Obtaining work permits in all Swiss cantons
Work permit applications for accompanying family members
Obtaining arrival, tourist, and business visas
Calculating salaries that are comparable to those in Switzerland for work
permit reasons
Compiling the necessary documen-ts for submitting permit and visa applications
Clarifying issues with various embassies
Legalization of documents

long-standing expertise also includes
Our
tax and social security advice for
providing
active employees in domestic and
internationally
contexts.
international
TAX & SOCIAL SECURITY
Employees and their know-how are often the most valuable resources for
companies. Workforce is increasingly being posted abroad as “international local
hires” or expatriates for a certain amount of time to further develop themselves or
the company in the host country, to provide missing specialist know-how or to
acquire such knowledge. These expats, as they are called, are subject to special
tax and social security regulations. Furthermore, there are other aspects that
require consideration, such as correct registration and administration in the host
country as well as other legal issues.
Our specialists deal with such issues regularly and assist you with reducing the
complexity of the situation and the accompanying costs. With the CONVINUS
Global Network (CGN), we possess a wide international network as well as
experience with consulting for overseas postings, individual tax returns,
integration at the new location as well as continuous support.
Contact us with any questions you may have. We will work with you to find the
best solution.
Our key consulting services:
Tax consulting for individuals
Tax issues related to double taxation agreements
Tax consulting for international structures
Tax consulting for permanent establishments
Optimization of the tax burden for private individuals
Filling of income tax returns
Tax consulting in the case of dependents moving to Switzerland
Preparing tax rulings for flat rate taxation
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changes, new regulations, stipulations,
Legislative
directives in human resources and in payroll
and
are part of day-to-day work routine.
accounting
HR & PAYROLL
One of the greatest challenges in the global mobility sector is the manage-ment of
payroll for employees who have social security obligations in one country, tax
obligations in another, and possibly even receive their salary in a third country.
In this regard, it has long been more than just international assignees but
increasingly also locally hired employ-ees who, due to their private and
professional situation, have their place of residence in a different country, where
they may have withholding tax obligations for their earned income or be subject
to social security obligat-ions which the employer is to comply with.
Due to our networked approach, we can assist you with the management of a
payroll for locally hired employees - all the way up to handling the entire payroll or
parts of it. Such partial areas may include e.g. your project employees who are
constantly working on projects overseas or your other expatriates.
We assist you on the search for the right insurance solutions as well as the
registration and ultimately the generation of the pay slips, regardless of whether
they are based on net or gross compensation agreements. We compile the right
gross up calculations for you. Utilize our know-how, our long-standing experience
and our vision for all issues in domestic and international payroll and HR contexts.
You define the scope and we will help you to find the best solution! We provide a
tailor-made solution!
Our key consulting services:
Competency center for HR departments regarding global mobility and international
assignments
Outsourcing of partial aspects such as case management for individual
assignment cases, HR administration, or payroll
Running Shadow-Payroll or Expat Payroll
Review the year-end declarations
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of whether you wish to outsource
Regardless
entire global mobility management or only
your
parts of it, CONVINUS is your competent
certain
partner. Our employees have been
outsourcing
in the in-house departments of global
employed
for many years, and regularly assume
companies
in case of human resources shortages
mandates
the expansion of know-how.
and
OUTSOURCING
Our outsourcing services range from taking over of individual cases for start-ups to
comprehensive posting management for established conglomerates. Thanks to our
diversified structure, we work for all industries represented in Switzerland, and
can offer you tailor-made solutions.
Our key consulting services:
Competency centre for HR departments with regard to postings and international
assignments
Outsourcing of partial aspects such as case management for individual posting
cases, immigration issues, work permits, taxes, and/or payroll
Outsourcing of the overall expatriate management or individual partial areas
as desired
Referral of interim personnel in the field of global mobility
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companies are able to manage the
While
of HR processes for locally
administration
and locally active employees without
employed
difficulty, expatriates and ‘international
any
or cross-border employees
commuters’
constitute a challenge.
constantly
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AUDIT & RISK MANAGEMENT
There is often a lack of expertise in companies because due to the low number of
internationally active employees relative to locally active employees, the
necessary know-how cannot be consolidated to a sufficient extent and constantly
maintained in the company due to reasons of efficiency and cost.
Furthermore, we are seeing an increase in audit requirements for cross-border
cases, business traveller, assignment and payroll accounting for expatriates. One
particular difficulty here is the correct representation of the contractually agreed
remuneration on the payroll and the legally compliant handling of remuneration
components regarding social security as well as domestic and international taxes.
Our experience shows that an early audit avoids many other difficulties and
follow-up costs related to employees working globally.
When immigration, labour law, payroll accounting, social security, and taxation
issues are correctly approached at the beginning of the assignment, or corrected
in a timely fashion, the administrative costs related can be significantly reduced.

your foreign employees, there is almost
For
more important than a successful start
nothing
their new surroundings. With long-standing
in
our relocation team ensures that
expertise,
are able to gain a firm footing from
expatriates
very beginning, thereby enabling them to
the
fully on their duties in the company
concentrate
from the start.
right
RELOCATION
We assist foreign employees expertly with the search for an apartment, find the
right schools for their children, and assist accompanying spouses on their search
for a job in Switzerland. To ensure long-term success, CONVINUS maintains an
extensive network of international schools and housing administrators.
Oftentimes, this are the small day-to-day questions on forms and unique aspects of
Switzerland which are particularly stressful on employees at the beginning of their
stay in Switzerland. Hence, CONVINUS provides an expatriate hotline to be able to
give rapid and expert information about day-to-day issues. Our employees have
been trained specifically for this purpose, as a number of them also relocated to
Switzerland from overseas, and are therefore familiar with the initial difficulties
newcomers face.
Our key consulting services:
Apartment search and referral incl. furnished appartments
Orientation program
Review of lease agreements
Settling-in services
Intercultural training
Departure services & Apartment handovers
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In-house Training" - have your further
CONVINUS
"tailor-made!" Exactly tailored to the
training
needs of your company and the
individual
participants.
TRAINING AND FURTHER EDUCATION
Together with you, we will determine the desired training objectives in a precise
situation and needs analysis.
In the implementation of your in-house training, we can react flexibly and
individually to the specifics and needs of your company at any time. Whether it's
the content, the language (in English or German) or the location, we develop all inhouse
trainings together with you as partners to ensure the best learning success
for your employees.
We provide you with comprehensive support in all matters relating to the
implementation of in-house training.
The success factors and basic principles of our in-house training offer:
Highly experienced and first-class trainers
Professional situation and needs analysis as well as exact definition of seminar
objectives
Training concept tailored precisely to your company
High-quality, didactically very well prepared training materials, which enable
the participants to work on the material in greater depth and promote easier
implementation and application through numerous practical cases and
solution presentations
Flexible choice of date, location, and duration - no travel or hotel costs, among
other things
On-site implementation in your company
Support in the organisational planning and implementation of in-house
training
Follow-up and measurement of success after the in-house training has taken
place
Price advantage already from 4-5 participants
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INSIGHTS
HERE WE SHARE OUR
KNOWLEDGE WITH YOU
Seasonal CONVINUS
Weekly CONVINUS
Global Mobility
Global Mobility Alert
Insights Newsletter
CONVINUS
CONVINUS
Internatinal
Coffee & Consulting
Publications
Presentations
insights.convinus.com
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Weekly CONVINUS
Global Mobility Alert
Guide
to Switzerland
Assignments
CONVINUS
Internatinal
Publications
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General aspects
Companies need to be able to assign employees quickly and easily between
countries. Traditional international assignment and global mobility programs are
designed to offer extensive services for a small number of long-term assignees.
However, today’s fast paced business environment needs global mobility programs
that allow efficient handling of a high volume of internationally mobile
employees.
To meet their strategic growth objectives, companies rely on globally mobile
employees who are willing to work internationally beyond the traditional
international long-term assignment programs. To address this challenge,
companies must apply new approaches and adapt their support for internationally
working employees. It is, therefore, necessary that the human resources and tax
departments build up their know-how, allowing them to efficiently advise their
mobile workforce in assignment matters such as social security, taxation, and
labor law.
Reasons for global mobility and international assignments
International assignments are driven by main factors such as “business needs,
compliance, human resources, and employees.
These main factors must be considered as a whole as they depend on each other
and can at times contradict each other. Answering immediate business needs, for
example, which requires an employee to work on a short notice in a foreign
location, can cause difficulties in obtaining the right work permit as well as
optimizing income taxes.
In the past, international assignments have been considered single events
focusing on the immediate business need without much integration into the
overall business strategy.With increasing compliance risks and globally working
employees, this one-dimensional approach needs to evolve into an overall global
mobility strategy that allows the handling of high volumes of complex global
mobility issues.
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The table on the nest page shows the underlying reasons for international
assignments. Usually, companies have several, if not all, of the below mentioned
reasons for international assignments within their business lines. As companies
are gaining more experience with global mobility, expectations regarding
international assignments are voiced more precisely and companies distinguish
more clearly between different types of assignment.
Development assignments where young talent gets the chance to prove and
develop their skills in a foreign destination can be structured fully compliant with
taxation, social security, and work permit legislation. This typically allows for a
smooth transfer between the home and the host country.
However, assignments for new market entries are usually carried out before the
company has a complete overview of the country specific laws and regulations.
More often than not, the company goes through a learning curve of how to best
setup the assignment for new market entries whilst the employee is on
assignment. For these assignments a balance between full compliance and
potential risks regarding e.g. tax issues needs to be achieved.

Main reasons for international assignments
Table: Reasons for international assignments
The table shows the four main drivers for international assignments and breaks them down into
more specific motives for each group.
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Assignment process
The typical process of an assignment is visualized in the chart below. The circle
itself describes the assignment process, whereas the inner circle marks the global
mobility tasks that need to be considered from a business perspective.
The assignment process ideally starts with planning; this may be a business need
to fill a specific position or the general need to develop internationally mobile
employees within the company. After a specific employee has been selected to go
on assignment, Human Resources (HR) start with the preparation of the
assignment package. This may be a standard assignment package or a specific
setup for employees who work globally in several locations.
After the contractual terms have been agreed upon - which may also include
finding the best setup for taxation, social security, and work permits - HR needs to
implement the assignment package. This includes, among others, the application
for the work permit and the social security coverage as well as the payroll
adjustments in the home and host country.
While the employee is on assignment, the main tasks for Human Resources are to
ensure compliant payroll handling as well as to track the costs of the international
assignments. Furthermore, the human resources department should monitor
current employee transfers that are due to terminate. One of the main challenges
of international assignments and global mobility is to ensure the smooth
repatriation and to find suitable positions for the former international assignees.
Assignment procedure
Chart: Assignment procedure
The chart shows the different phases of an
assignment from the initial planning to the
return of a globally mobile employee to the
home company.
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Assignment costs
Total costs are an important factor when considering international assignments
versus hiring an employee locally. Even though companies have become more
cost-sensitive, there are certain companies, especially mid-sized companies with
few international assignments that lack structured cost tracking measures for
their globally mobile employees.
Therefore, it is important to increase cost awareness from the early stages of the
preparation of an international assignment and to already factor it in during the
planning stage (as described in the assignment procedure).
Assignments with sojourning family members can be 2.5 to 3 times more expensive
than the initial compensation as the employer usually covers the international
school costs as well as health insurance premiums for all family members.
Oftentimes companies also provide additional benefits such as annual home
leaves for all family members and spouse support, which increase the total costs
for the assignment.
Cost estimate
The cost estimate below shows the average assignment costs for a
single employee who relocates from Switzerland to Austria for 2
years. The factor between pre-assignment and assignment costs
clearly demonstrates how much more expensive international
assignments are compared to the employee remaining in the home
country. The cost estimate does not show the additional costs that
would ensue from an assignment compared to hiring a local
employee at the assignment location.
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Assignment agreement
This sample assignment agreement below indicates the points that
need to be included in an assignment agreement. However, each
company should amend this sample according to its assignment
policy and specific requirements for international assignments.
Sample Assignment Agreement
Between
Surname Name
Street
City, Country
(Referred to hereafter as the Assignee)
And
Company
Street
City, Country
(Referred to hereafter as the Home Company)
1. General Conditions
This agreement is to confirm the general terms and conditions of the international
assignment between the above mentioned parties.
The Assignee continues to be employed by the Home Company in [City], [Home
Country] (referred to hereafter as the Home Country). The employment contract
with the Home Company dated [date] shall be dormant during the international
assignment. The rights and obligations arising from the dormant employment
contract with the Home Company shall be re-established as soon as the
assignment has been completed, unless the Assignment Agreement and/or the
employment contract with the Home Company have been terminated due to
reasons that the Assignee is responsible for (e.g. justified termination without
notice).
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The Assignee will be assigned from the Home Company to [Host Company]
(referred to hereafter as the Host Company) in [City], [Host Country] (referred to
hereafter as the Host Country) with effect [date] depending on whether the work
permit for the Host Country is granted. This Assignment Agreement is only valid as
long as the Assignee holds an appropriate work and residence permit for the Host
Country.
The international assignment is scheduled to end on [date]. The Assignee and the
Home Company will decide 3 months before the end date of this international
assignment whether the international assignment to the Host Country needs to be
extended. The Home Company has the right to recall the Assignee at any time due
to business reasons providing a 3-month notification period.
During the assignment to the Host Country, the Assignee will hold the position of
[Job title] and support the Host Company. The Assignee will be reporting to [Name
Job title].
2. Assignment Compensation
The assignment salary shall be calculated according to the balance-sheetapproach.
This means that different tax levels, social security contributions as well
as cost-of-living data in the Home & Host Country will be taken into account for
determining the assignment compensation. The balance-sheet-approach shall
ensure that the Assignee can maintain the same standard of living in the Host
Country as if he were still in the Home Country and that he neither suffers a
financial loss nor benefits from a financial gain.
The Assignee will receive the following gross compensation:
Gross base salary: xy CHF per month (gross)
Assignment differential: xy CHF per month (gross)
Housing differential: xy CHF per month (gross)
Car allowance: xy CHF per month (gross)
Relocation allowance: 2,500 CHF one-time lump sum (gross)
Home leave: 1 home leave trip per year (economy class)
Assignment Differential
As the Assignee’s gross base salary remains the same as before the assignment, he
receives an Assignment Differential to account for the different tax levels, social
security contributions, and cost of living levels between the Home Country and the
Host Country.
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Housing Differential
The Assignee shall receive a monthly housing differential that shall cover housing
costs in the Host Country that are higher than in the Home Country.
Relocation Allowance
The Assignee shall receive a one-time relocation allowance to cover petty expenses
such as renewal of the passport, registration and deregistration, smaller
household items, electronic devices, etc.
Home Leave
The Assignee is entitled to the reimbursement of 1 return trip (economy class; net
of social security and tax for the Assignee) to the Home Country every year. These
home leave trips shall always be taken in conjunction with the reporting
requirements in the Home Country.
The Company will pay for these trips via normal expense reporting procedures. The
Assignee has to inform the HR Department of the Home Country about such
payments. There will be no compensation for unused home leave trips.
3. Taxation
It is the full responsibility of the Assignee to correctly declare and pay income
taxes on his worldwide income.
In case the Assignee needs to file a tax return in the Host Country based on the
assignment, the Assignee will be provided with tax support.
The Assignee becomes liable to income taxes in the Host Country. Therefore, the
different tax rates between the Home and Host Country have been accounted for
in the above described Assignment Differential. This differential shall ensure that
the Assignee neither suffers from a financial loss nor benefits from a financial gain
due to different tax levels in the Home and Host Country.
4. Insurances
Social Security
It is the intention that the Assignee remains in the social security system of the
Home Country during the assignment as long as legally possible. It is the
responsibility of the Home Company to obtain the necessary documents for the
continuation of the social security coverage in the Home Country and the
exemption from social security contributions in the Host Country.
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If a continuation of social security in the Home Country is possible but the
exemption from social security contributions in the Host Country is not granted,
the Home Company will arrange for the continuation of social security in the
Home Country and cover the additional social security contributions in the Host
Country. The Assignee agrees to retrieve any contributions and/or benefits from
the social security authorities in the Host Country which are financed/paid by the
Home Company and to repay the funds to the Home Company.
If a continuation of Home Country social security is not possible, the Assignee shall
be fully enrolled in the social security system of the Host Country. In this event,
social security contributions according to the laws and regulations of the Host
Country will be withheld from the Assignee’s salary.
Medical Insurance
The Assignee as well as his on her sojourning family members will keep their
medical insurance from their Home Country throughout the assignment as long as
legally possible. If additional insurance is necessary in order to be adequately
insured in the Host Country, the Home Company will cover the additional costs for
this supplementary insurance coverage up to xy CHF per month (net of social
security and tax for the Assignee).
5. Working Hours
During the assignment to the Host Country, local rules and regulations of the Host
Country with regard to working time will apply. The weekly working time will be
[xy] hours while working on assignment in the Host Country. Any working time
exceeding [xy] hours per week is already compensated with the Assignment
Compensation as defined under point 2 - Assignment Compensation of this
agreement. There will be neither further monetary compensation for working
hours exceeding [xy] hours per week nor will this working time be carried over to
another period.
6. Vacation & Public Holidays
The Assignee shall observe the holiday schedule of the Host Country during the
international assignment. There will be no compensation for public holidays in the
Home Country that fall during the assignment period.
The Assignee shall receive [xyz] vacation days per calendar year.
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7. Removal
The Home Company covers the relocation costs up to 25 m3. There will be no
compensation for unused relocation volume.
8. Termination
This Assignment Agreement is subject to a notice period of 3 months but expires in
any case at the end of the assignment stated herein. The early termination of this
Assignment Agreement shall not affect the main employment contract with the
Home Company. In case the main employment shall also be terminated, this
contract needs to be terminated separately.
In case the Assignee’s employment with the Home Company will be terminated
during the assignment period, this Assignment Agreement will expire at the same
time but in any case, not later than the assignment end date stated herein.
In cases of gross misconduct that would justify immediate termination of the
employment contract according to the laws of the Home Country or Host Country,
the Home Company retains the right to terminate this Assignment Agreement
immediately.
9. Code of Conduct
The Assignee is expected to conduct the business affairs with standards of
integrity that ensure avoidance of any conflict of interest. Full compliance is
expected with the standards and laws of the Home & Host Country.
10. Severability Clause
Should one of the clauses of this Assignment Agreement fully or partially be or
become ineffective or should a gap in this Assignment Agreement become
apparent, this will not affect the effectiveness of the rest of this Agreement. The
ineffective part or the gap will be replaced by an appropriate rule which has the
closest purpose and sense to what the two parties had agreed on in case they had
thought of this point, as far as legally possible.
11. Applicable Law
This Assignment Agreement is governed and interpreted according to the
legislation of the Home Country.
12. Final Provisions
Any amendments, additions or side agreements to this Assignment Agreement are
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equired in writing. This also applies with regards to any cancellation of or
amendments to this requirement.
Please indicate your acceptance of this Assignment Agreement on the terms and
conditions set out above by signing the Agreement on both copies.
Name
Home Company
Name
Assignee
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Checklists
The following checklists for Human Resources and the employee
shall outline the main administrative tasks that the human
resources department and the globally mobile employee have to
perform in the course of the preparation of an international
assignment. Each company should adjust the checklists to its
specific needs in order to work efficiently.
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SWITZERLAND - Immigration
Entry requirements
Non-EU/EFTA nationals as well as EU/EFTA nationals seconded to Switzerland are
able to work for up to 8 days within a calendar year without a work permit.
Individuals require work authorization for any work activities that exceed these 8
days. Certain nationals may require a visa. For some work sectors, it is necessary to
complete an online announcement or file a work permit application before
commencement of the work activities in Switzerland.
Business visitors
Nationals of the EU/EFTA states as well as certain non-EU/EFTA nationals are able
to enter Switzerland as a business visitor without a visa if they are staying in
Switzerland and the Schengen area for less than 90 days within any 180-day
period. These individuals could be required to provide confirmation of their
onward journey and their passport must be valid for at least 90 days after the
intended date of departure from the Schengen area.
Schengen Visa
This visa is suitable for business visitors who do require a visa to enter Switzerland
and who will be staying within the Schengen area for less than 90 days within any
180-day period. Some of the documentation required includes:
Visa application form
Confirmed round-trip ticket
Travel itinerary
Travel insurance
Proof of sufficient financial funds
Company letter of support
Invitation from the Swiss company
Work permit requirements
An employee seconded to Switzerland from an employer located outside the
EU/EFTA region is able to work in Switzerland for up to 8 days within a calendar
year without a work permit if the work activity does not exceed 8 days altogether
in the relevant calendar year. If the work activity exceeds 8 days the employee will
need a work authorization from the first day of working in Switzerland.
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For employees seconded to Switzerland from an employer located within the
EU/EFTA region the 8-day work permit exemption applies to the company and not
the employee. Hence, the company is only able to second employees for up to 8
days altogether within a calendar year without a work permit.
Certain nationals may require a visa to enter Switzerland. For some work sectors a
work authorization is required from the first day of working in Switzerland.
Work permit – Assignment
Up to 90 days-notification
Employers located within the EU(27)/EFTA region are able to second EU/EFTA
nationals and non-EU/EFTA nationals who have been active in the EU(27)/EFTA
labor market for the last 12 months for a period of up to 90 working days per
calendar year to Switzerland based on the notification process. The employer
must complete an online notification in order to fulfill the Swiss immigration
requirements.
Employers located outside the EU(27)/EFTA region and non-EU/EFTA nationals
(unless active in the EU(27)/EFTA labor market for the last 12 months) are not able
to benefit from the online notification system and must apply for a regular work
permit in order to second an employee or be able to work in Switzerland.
Over 90 days
For assignments beyond 90 days and assignments from a company outside the
EU(27)/ EFTA region a regular work permit needs to be filed for the employee.
Applications for all nationals need to comply with the assignment regulations in
Switzerland. These assignment regulations regulate the salary and the additional
benefits an assignee should receive when on assignment in Switzerland.
Work permit – Local employment
Switzerland has a dual system for the admission of foreign nationals; depending
on the nationality. Certain nationalities are given precedence as described below:
EU(27)/EFTA nationals –
EU(27)/EFTA nationals benefit from the Agreement on the Free Movement of
Persons (AFMP) when working under a Swiss local employment contract. They are
entitled to receive a residence permit, which comprises a work permit, and may
perform work activities in Switzerland once the registration with the local
registration authority has been concluded.
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Non-EU(27)/EFTA nationals –
Immigration laws in Switzerland restrict the number of non-EU(27)/EFTA nationals
that are able to work in Switzerland. In order for a work permit to be granted, the
following requirements and restrictions must be observed:
Provide proof that there are no suitable domestic employees or citizens of
states that are covered by the AFMP that are able to fulfill the position. There
are exceptions in place for specialists and executives.
Quotas that limit the number of work permits.
Salary and employment conditions must meet those that are customary for
the location, profession and sector.
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Labor Law
Employment contract
Employment contracts may be agreed upon verbally or in writing. However,
employment contracts for certain employee categories (apprentices, commercial
travelers, and home workers as well as contracts lasting for more than 1 month)
must be concluded in writing.
The employment contract needs to cover at least the following points:
Name and address of the employee and employer
Start date
Job description
Compensation
Weekly working time
Work hours per week
The maximum workweek is 45 hours. However, the actual working hours are
oftentimes lower. The average working time is 41.6 hours per week within a larger
organization.
Switzerland distinguishes between the concepts of “overtime” and
“supplementary work.” Overtime is limited to 170 hours per year with employees
working 45 hours per week. Overtime payment may be waived and already
included in monthly pay. However, supplementary work beyond overtime needs to
be compensated separately.
Sunday or public holiday work
A particular work permit is required for work carried out on a Sunday or on a
public holiday. The application must be submitted to the Swiss immigration
authority before starting work on a Sunday or public holiday.
Vacation days
Employees are entitled to 20 vacation days per year. Employees younger than 20
years are entitled to 25 vacation days per year.
Swiss collective agreements may grant higher vacation day entitlements to
employees, which increase according to the employee’s age.
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Public holidays
Employees in Switzerland are entitled to at least 9 paid public holidays per year.
Additional public holidays may apply, which vary by canton and region.
Minimum wage
Collective employment agreements are applicable for certain job sectors and
stipulate the applicable minimum wage. If a collective employment agreement is
not applicable, the employee’s wage is determined by the employer based on
various factors such as field of work, age and education. There is no set minimum
wage in Switzerland; however wages of foreign nationals must meet certain
requirements. Wages of foreign nationals are strictly scrutinized, particularly
when applying for a work permit. If a work permit is not granted, this is oftentimes
because the wages do not meet general Swiss standards and are too low.
Severance pay
Swiss law does not foresee statutory severance pay entitlements. However, large
Swiss companies and multinationals may grant half a month’s pay per year of
service.
Also, some companies may provide longer notice periods instead of entitling their
employees to severance payments.
Probation period
An employment contract can include a probation period between 1 and 3 months.
During the probation period either party may terminate the employment by
providing 7 days’ notice.
Notice period
During the first year of employment either party may terminate the employment
contract by providing a month’s notice before the end of the month. Between the
second and ninth year of employment either party may provide 2 months’ notice.
During and after the tenth year of service, either party may terminate the
employment contract by giving notice of three months. Swiss employment
contracts may foresee longer notice periods than the above described minimum
legal standard.
Ratio requirements in regard to foreign staff
Not applicable.
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Personal income tax
Tax year
Calendar year (January 1 to December 31).
Tax return filing requirements and filing date
Married couples are taxed jointly on all types of income.
Swiss tax returns are generally due by March 31 of the year following the tax year.
However, tax filing deadlines as well as regulations for extensions differ widely by
canton.
Tax residence status
Individuals are considered as residents for tax purposes if they intend to stay in
Switzerland for a certain period (generally 30 days with gainful activity and 90
days without gainful activity) or if they take up legal residence in Switzerland.
Income tax rates for non-residents
Non-residents are taxed at the same tax rates as resident individuals. However,
non-residents are usually not entitled to the same deductions available to Swiss
tax residents.
Income tax rates for residents
Switzerland levies income taxes on a federal, cantonal, and communal level.
Income taxes on the cantonal and communal level vary widely by canton and
municipality.
The maximum overall tax rate on the federal level is 11.5%, whereas the maximum
combined cantonal and communal tax rate is 35%.
All cantons apply a progressive tax scale.
The following table shows examples of the different combined tax rates
(communal, municipality, and federal tax) for the cities of Zug, Zurich, and Geneva.
Taxation of benefits in kind
Taxable income includes the base salary, bonus, allowances and most other
compensation elements.
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Benefits in kind are usually taxable and need to be included in the total
remuneration to determine and pay income taxes.
Non-taxable benefits
The following benefits may be provided free of tax to the employee:
Event tickets up to CHF 500
Club memberships up to CHF 1,000
Holiday or birthday gifts up to CHF 500
Special taxation
Expatriates
Expatriates with a temporary assignment contract may benefit from expatriate
concessions if they do not stay longer than 5 years in Switzerland.
The exact handling of the expatriate concessions varies by canton. However,
expatriate concessions typically include deductions for:
Reasonable accommodation in Switzerland (if the expatriate keeps the
accommodation abroad)
Moving costs
Travel expenses to and from Switzerland
Schooling expenses for children who do not speak the regional language
Commuter (Grenzgänger)
Individuals who live in one country and work in another may be subject to special
tax rules.
The most common scenario in the German speaking part of Switzerland is for
individuals who commute from Germany to work in Switzerland. These individuals
pay 4.5% withholding taxes in Switzerland and pay regular income taxes in
Germany. The 4.5% Swiss withholding taxes can be credited against German
income taxes.
For each of the 5 bordering countries with Switzerland, a different tax treatment
of commuters is applied. The following table provides a general overview how
commuters are taxed:
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Executive Employees (Leitende Angestellte)
Only the double tax treaty between Germany and Switzerland has special taxation
rules for executive employees which differ from the general rules in the respective
tax treaty.
The double tax treaty with Germany foresees a taxation of executive employees at
the place of residence of the company. Executive employees are defined very
specifically.
International weekly commuter (Internationaler Wochenaufenthalter)
International weekly commuters may only file a tax return or a withholdings tax
tariff correction if they earn at least 90% of their family income in Switzerland.
This severely restricts the individual’s tax planning, as tax optimization methods
available in Switzerland can only be applied when filing a tax return or a
withholding tariff correction. For example, payments made into the 2nd and 3rd
pillars of the pension scheme, which are considered tax deductible, cannot be
considered unless a tax return or withholding tax tariff correction are submitted.
The international weekly commuter may therefore only benefit from the Swiss
optimization methods available if 90% of the family income is earned in
Switzerland.
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Double tax treaties with Switzerland
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Social security
Insured individuals
All individuals are required to enroll in the statutory health insurance if they are
resident in Switzerland.
Generally, all individuals working in Switzerland must be enrolled in the social
security system of Switzerland.
Individuals who are not employed may also be subject to statutory old age
contributions (AHV) in Switzerland if, based on their age or on the employment of
their spouse, they are not exempt from making these contributions.
Exemptions
Foreign individuals may be exempt from Swiss social security contributions if they
are covered by a foreign social security system and a social security treaty is
applicable.
Three Pillar System
The Swiss pension system has a three pillar system, which consists of a state
pension (1st pillar), occupational pension (2nd pillar), and a private pension (3rd
pillar). These three pillars shall maintain the accustomed standard of living for
insured individuals or their surviving dependents in old age or in the event of
disability or death.
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Pillar 1 - Old age, survivors’, and disability insurance (AHV/IV)
The state pension system comprises Federal Old Age and Survivors’ Insurance
(AHV) and Federal Disability Insurance (IV). The 1st pillar is mandatory and aims to
guarantee a basic standard of living in old age or in the event of disability.
All persons residing or employed in Switzerland are included in the state pension
system. Contributions for employed individuals are based on their total
compensation and contributions for individuals who are not employed are based
on the wealth of those individuals.
A full pension can be reached after 44 years of contributions and an average,
revalued income of 88,200 CHF (in 2023) per year. The maximum state pension
payable to singles amounts to 29,400 CHF (in 2023) per year.
Pillar 2-Pension fund
The 2nd pillar of the pension scheme (Federal Act on Occupational Retirement,
Survivors’ and Disability Pension Plans-BVG) accumulates capital for retirement
which can be paid out as a lum psum or pension upon retirement. The
occupational pension fund also provides insurance coverage for disability and
death.
Together with the state pension scheme, the occupational pension fund is
designed to maintain the accustomed standard of living after retirement and in
the event of disability.
Individuals earning at least 22,050 CHF (in 2023) per year are subject to pension
fund contributions. Employers typically provide pension fund insurance beyond
the statutory limit of 88,200 CHF (in 2023) per year, which allows employees to
insure a higher salary and to make the corresponding contributions.
Pillar 3-Private Savings
Individuals who are covered by a pension fund may pay up to 7,056 CHF (in 2023)
per year into the pillar 3a. These private savings are tied in the pillar 3a up until
the retirement of the individual. However, these savings provide certain tax
advantages.
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Other social security insurances
Unemployment insurance (ALV)
This section of the Swiss social security system provides benefits for unemployed
individuals below the retirement age.
(Non-)Occupational accident insurance
Accident and illness are covered by separate insurances in Switzerland. The
occupational accident insurance provides coverage for work-related accidents and
the non-occupational accident insurance provides coverage for accidents the
employee suffers outside of work. Illnesses are covered through the mandatory
health insurance.
Daily sickness insurance
Employers may provide a daily sickness insurance to cover the employee’s salary
loss in case of illness. Contributions vary by insurance company and may be split
between the employee and the employer or borne in full by either the employee or
employer.
Employers who do not provide daily sickness insurance are required to continue
salary payments depending on the work location and duration of the employee’s
employment with the employer.
Family allowance insurance
The child and family allowance are financed through this insurance.
Health insurance
All individuals in Switzerland must be enrolled in a mandatory health insurance.
There is a wide variety of mandatory health insurance providers. However, all
insurance companies are required to provide the same benefits under their
mandatory health insurance plans. Contributions differ widely by region and
among insurance companies. Different rates are applicable for children, young
adults and adults.
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Other social security insurances
Unemployment insurance (ALV)
This section of the Swiss social security system provides benefits for unemployed
individuals below the retirement age.
(Non-)Occupational accident insurance
Accident and illness are covered by separate insurances in Switzerland. The
occupational accident insurance provides coverage for work-related accidents and
the non-occupational accident insurance provides coverage for accidents the
employee suffers outside of work. Illnesses are covered through the mandatory
health insurance.
Daily sickness insurance
Employers may provide a daily sickness insurance to cover the employee’s salary
loss in case of illness. Contributions vary by insurance company and may be split
between the employee and the employer or borne in full by either the employee or
employer.
Employers who do not provide daily sickness insurance are required to continue
salary payments depending on the work location and duration of the employee’s
employment with the employer.
Family allowance insurance
The child and family allowance are financed through this insurance.
Health insurance
All individuals in Switzerland must be enrolled in a mandatory health insurance.
There is a wide variety of mandatory health insurance providers. However, all
insurance companies are required to provide the same benefits under their
mandatory health insurance plans. Contributions differ widely by region and
among insurance companies. Different rates are applicable for children, young
adults and adults.
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Payroll
Calculation period
Monthly.
Split payroll
It is legally possible to implement a split payroll in Switzerland.
Withholdings
The employer is required to withhold social security contributions from the
employee’s income.
Foreigners without a permanent residence permit (C-permit) are also subject to
withholding taxes with some cantonal exceptions. The withholding tax tariff
varies from canton to canton.
Sample calculation
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Relocation
Housing
Housing is very limited in Switzerland, particularly in Zurich. It is advisable to send
an application as soon as the suitable property has been found. The application
should include a Curriculum Vitae, proof of employment and financial standing, as
well as supporting documents such as degree certificates. The cost of housing is
higher than in surrounding countries; however, the standard is very high.
At the end of the tenancy, it is essential to return the accommodation in a pristine
condition; otherwise the tenant will be expected to pay any costs associated with
repairs or cleaning. There are cleaning companies that specialize in cleaning
apartments for the handover at the end of a tenancy.
It is worth noting that in older housing a washing machine and dryer are usually
shared by all tenants in one building. A washing schedule regulates the use of the
washing machine and dryer. In newly built accommodation, apartments come
with their own washing machine and dryer.
Moving personal goods
It is possible to import household goods duty free into Switzerland if the goods
have been owned and used for at least six months prior to arrival. Individuals
importing the goods must complete a clearance of household effects form and
provide an itemized inventory, a copy of their passport as well as a copy of their
employment contract.
Foreign exchange regulation / Transfer of funds
There are generally no foreign exchange regulations or restrictions for
transferring funds in place for individuals.
Purchase of real estate property
There are restrictions in place for foreign nationals wishing to purchase property
in Switzerland. Only EU or EFTA nationals with a Swiss residence permit who are
residing in Switzerland or holders of a Swiss C permit are able to purchase
property. In both cases the individuals have the same rights as Swiss nationals.
Holders of a B permit are only able to purchase property in which they intend to
live in. All other individuals must apply for a license in order to purchase property.
Certain individuals might not be able to purchase property in any circumstances.
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Below is an overview of the Swiss education system including examples of
educational institutions in Zurich within some categories:
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Driver’s license
Foreign nationals are usually entitled to drive in Switzerland with their foreign
driver’s license for up to one year after their date of entry into Switzerland. After a
year it is usually necessary to render the foreign driver’s license and apply for a
conversion into a Swiss license; however this time restriction can vary from
canton to canton. It is therefore advisable to check with the local transport office.
A foreign driver’s license can be converted into a Swiss one by personally
submitting an application form including the following at the relevant transport
office:
Sight test confirmation
Color photo
Copy of foreign driver’s license
Original driver’s license
Attested translation of driver’s license if the foreign driver’s license is not
issued in either German or English (canton Zurich; language requirements vary
from canton to canton)
Original Swiss residence permit or Swiss I.D. Card
If the Swiss residence permit is in a credit card format, the transport office
requires a confirmation of residence which states when the person entered
Switzerland
The above requirements apply to all foreign driver’s licenses.
There are additional requirements in place for the conversion of certain driver’s
driving licenses. These include a medical check and/or a driver’s or theory test.
Hospital / Clinics
Public hospitals in Switzerland are of a high standard and provide modern
facilities. Most treatment at public hospitals is covered by basic health insurance.
The high standard offered by private hospitals does not differ much to the
standard provided at public hospitals. The main advantage of attending a private
hospital is the reduced waiting time. Certain treatments at private hospitals are
only covered by more comprehensive health insurance plans.
Health insurance is obligatory for nearly all residents in Switzerland and needs to
be taken out within 3 months of arrival. Health insurance is neither governmentfunded
nor sponsored by the employer and is only provided by private health
insurance companies.
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It is therefore the individual’s responsibility to take out a health insurance
policy and select the desired insurance model.
Domestic help / Household staff
There are many agencies available that administer the services of household staff
in Switzerland, particularly in larger cities. Agencies ensure that domestic helpers
are correctly registered and insured and also take care of the accounting aspects.
It is not advisable to pay domestic helpers cash in hand. It is considered the
customer’s responsibility to ensure that the individual is correctly registered and
insured. If this is not the case, the client is considered liable by the authorities.
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Departure
Work permit
If an individual has been registered in Switzerland, he must deregister with his
local registration authority upon his definite departure from Switzerland. Upon
de-registration the individual is no longer entitled to a Swiss residence permit and
is no longer eligible to work in Switzerland. Holders of a Swiss C permanent
residence permit can under certain circumstances and when expecting to return
to Switzerland within 4 years uphold their permit for a period of up to 4 years
(freezing of C-Permit).
Labor law
If an employee is leaving the Swiss company, certain labor law regulations must
be reviewed and observed, such as which termination period is applicable. If an
employee is being assigned abroad, there is usually an additional employment
contract or assignment agreement in place. The additional employment contract
usually refers to the labor law regulations of the home country, in this case
Switzerland. This does not, however, exclude the possibility that the courts in the
host country could consider themselves to have jurisdiction over any legal
proceedings that ensue during the assignment to their country.
Income tax
All individuals need to deregister at their local town hall if they are planning to
leave Switzerland for a period longer than 6 months.
By this point in time, the individual must have paid any outstanding tax liabilities.
Depending on the individual’s circumstances, the foreign national is required to
file a tax return for all of the income received up until the date of departure.
Generally, foreign nationals who have been taxed at source do not need to
complete a tax return.
If an individual owns real estate in Switzerland, the individual will remain liable
for tax for this property in Switzerland. The individual is, therefore, required to file
a tax return in the canton where the property is located.
If the individual is being assigned from Switzerland to a foreign subsidiary by the
Swiss employer, it is also necessary to review how the employee’s tax liability will
be regulated during the assignment. Many employers apply a tax equalization
method, meaning the employee continues to be charged the same tax amount as if
the employee had remained in Switzerland.
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In this case a hypothetical tax amount is deducted from the employee’s salary by
the employer. Once the employee’s final tax liability has been calculated, it is
necessary to review the provisional tax withheld by the employer and amend
accordingly.
Social security
The individual who is departing. However, if Switzerland must be deregistered
accordingly with the Swiss social security authorities. The employee is being
assigned from Switzerland to another subsidiary abroad, the social security
liability of the employee must be reviewed; it is possible that the employee is able
to remain in the Swiss social security system and not become liable for social
security in the assignment country. If this is the case, the contributions due to the
Swiss social security system are calculated on the total salary earned and are
submitted to the authorities for the duration of the assignment, as long as legally
possible. The corresponding petitions for the continuation of the Swiss social
security must be submitted according to the deadlines set by the authorities.
Payroll
When an employee permanently leaves Switzerland, the payroll department must
review whether the employee is due any salary, benefits or payments for overtime
or holiday entitlement that had not been taken before departure. The payroll
department must review the employee’s social security and taxation structure if
he or she is on assignment. The corresponding contributions must be calculated
and provided to the authorities.
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Our Offices
Zurich
Talstrasse 70
CH-8001 Zurich
Tel. +41 44 250 20 20
Fax +41 44 250 20 22
info.zuerich@
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Basel
Aeschengraben 29
CH-4051 Basel
Tel. +41 61 508 20 40
Fax +41 61 508 20 44
info.basel@
convinus.com
Geneva
Postfach
CH-1215 Geneva
Tel. +41 22 508 20 60
Fax +41 22 508 20 66
info.genf@
convinus.com
Zug
Turmstrasse 18
CH-6300 Zug
Tel. +41 41 508 20 70
Fax +41 41 508 20 77
info.zug@
convinus.com
NOTE:
The contents of this newsletter represent only general information and are in no way a substitute
for individual advice. The contents have been selected with great care, but CONVINUS accepts no
liability for any damage whatsoever resulting from the use of the information provided here. The
entire content of the newsletter is the intellectual property of CONVINUS and is subject to
copyright. Any modification, copying, distribution and public reproduction of the content or parts
thereof requires the prior written consent of CONVINUS.
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