Umbrella Payroll and Employer of Record (EoR)

---

WHAT ARE UMBRELLA PAYROLL AND EMPLOYER OF RECORD (EOR) SERVICES ?

The main principle of Umbrella Payroll and Employer of Record (EoR) lies in the tripartite contractual relationship between the employee, the client company and the payroll company. The employee invoices his/her/their services to customers and integrates the network of the payroll company, which charges management fees on the amount invoiced.

WHAT IS THE APPLICABLE LEGAL FRAMEWORK?

A Swiss employment contract is created between SPTS Portage and the employee. This employment contract sets out the terms and conditions stipulated by the client and/or the agency with whom you are in contact. SPTS Portage issues a service contract with the end client based in Switzerland for invoicing purposes. Where an agency is involved in the business process, the agency will invoice SPTS Portage for its fees.

WHOM MAY UMBRELLA PAYROLL AND EMPLOYER OF RECORD (EOR) SERVICES CONCERN?

Young graduates, reconversion workers and pensioners in full employment-retirement can use Umbrella Payroll services. There are many other motivations: entering the job market, valuing an experience, testing a project before starting a business, or having an additional income.

WHAT KIND OF MISSIONS AND CONTRACTS CAN BE UNDERTAKEN WITH UMBRELLA PAYROLL AND EMPLOYER OF RECORD (EOR) SERVICES ?

Any intellectual service may be the subject of an Umbrella Payroll and Employer of Record (EoR) services contract: services, consulting, project support and training. Creative professions (art, fashion, culture) are also compatible with this status, unlike regulated professions or those subject to a specific insurance scheme.

WHY BECOME SALARIED VIA UMBRELLA PAYROLL AND EMPLOYER OF RECORD (EOR) SERVICES ?

First of all, salaried individuals benefit from the status of employee (pension, civil liability, unemployment insurance, health insurance, training rights and others). You retain control over your commercial prospection, and autonomy in your project’s choices. If you have the entrepreneurial fiber and want to balance work and private life, this status is for you!

DOES SPTS PORTAGE ENSURE STAFF PLACEMENT AND JOBS SEARCHES FOR ME?

No, SPTS Portage is not a staff placement company. SPTS Portage does not search jobs for candidates.

WHO IS IN CHARGE OF CLIENT PROSPECTING?

Client prospecting and marketing research is carried out by the contractor and not by the Umbrella Payroll company.

Upon signature of the contract, the Umbrella Payroll company hereby undertakes not to commercially approach its employees’ clients.

Salaries and fees 

HOW IS MY SALARY CALCULATED?

We convert your invoicing into a salary. In other words, we deduct our commission and all social security contributions (employer and employee) from the invoice. Thus, you have the status of an employee together with all its associated rights and privileges (sickness, insurance, pension, unemployment).

HOW DO I GET PAID?

1. We invoice your client within two working days of receiving your approved timesheet.
2. We calculate your salary and produce a pay slip.
3. We pay your salary within two working days of receiving your client’s payment, or by the fifth working day of the month following the activity if you have the Cash Box.

HOW MUCH IS THE SPTS PORTAGE FEE?

The SPTS Portage fee is 3% of the total amount billed to the client with a minimum fee of CHF 300.

IS IT POSSIBLE TO ISSUE AN INVOICE WITH FOREIGN CURRENCY TO FOREIGN COUNTRIES?

Yes, you can issue invoices to foreign countries in various currencies.

Invoices to foreign countries that are not subject to VAT are subject to prior approval by SPTS Portage.

All salaries are paid out in Swiss Francs (CHF), since the social contributions have to be paid in CHF in Switzerland.

Foreign currencies are converted according to the bank exchange rate of the day they are credited. SPTS Portage cannot influence the rates.

INVOICING TO FOREIGN COUNTRIES WITHOUT VAT?

Invoices to foreign countries that are not subject to VAT are subject to prior approval by SPTS Portage.

All salaries are paid out in Swiss Francs (CHF), since the social contributions have to be paid in CHF in Switzerland.

Foreign currencies are converted according to the actual bank exchange rate of the day they are credited. SPTS Portage cannot influence the rates.

CAN I AGREE ON A SALARY IN A DIFFERENT CURRENCY?

You may agree on a salary in foreign currency however, when the payment is credited, the amount gets automatically converted to CHF with the daily rate by our bank. We may only pay the salary in CHF, since all social contributions need to be made in Swiss francs.

Taxes

---

HOW MUCH TAX WILL I PAY?

The Swiss tax system is first and foremost cantonal. Your tax will therefore depend on your personal circumstances (married, spouse working in Switzerland, children etc.) and on your place of residence. Based on these criteria, you will be given a comprehensive simulation tailored to your personal situation.

HOW DO I PAY MY TAXES?

Except for Swiss nationals and holders of C Permits, taxes will be deducted at source.

WHAT ARE WITHHOLDING TAXES AND HOW ARE THEY CALCULATED?

Withholding taxes are taxes not directly paid by the taxpayers themselves but directly paid by the employer, prior to the deduction of the sum due and paid to the community.

WHO IS TAXED AT SOURCE?

• Foreign employees living in Switzerland and who neither possess a permanent residence permit C nor are married to a person with a residence permit C or Swiss citizenship.
• Employees living abroad who pursue gainful employment in Switzerland as international commuters or weekly residents or who work as employees in the field of international transport for a Swiss enterprise.

The withholding tax can vary per canton, civil status, confession and amount of children. Therefor every employee receives a withholding tax code.

The withholding tax percentage can vary each month. The taxes need to be calculated based on the monthly gross salary. For hourly and daily salaries the tax percentage can therefore vary each month due to different gross salaries.  You will be able to check the withholding tax rate on the website of your resident canton within the official tax table list.

The withholding tax code is given by the civil status, the amount of children and your confession:

Tariff groups

• A – tariff for singles
• B – tariff for married couples with single income
• C – tariff for married couples with double income
• D – tariff for additional income

Number of children

• Children can only be acknowledged for the tax rate if child allowance is applied through SPTS Portage

Church tax

• Y – with church tax
• N – without church tax

Example: A0Y single person without children and no church tax

Withholding tax calculator

NEW WITHHOLDING TAX REGULATIONS IN 2021:

The revision of the Withholding Tax Ordinance will come into force on 1 January 2021. The Swiss withholding tax system from 1995 will thus be fundamentally changed after 25 years. The aim is to ensure equal treatment of employees who are subject to withholding tax and those who are subject to ordinary taxation. At the same time, legal certainty for employers and employees will be increased.

Withholding taxpayer’s resident in Switzerland with an annual gross income of CHF 120,000 or more are still subject to a mandatory retrospective ordinary assessment (NOV). Employees liable to withholding tax with an annual gross income below this threshold can now also apply for a NOV. In addition, it is also possible to apply for a recalculation or a NOV if you do not agree with the withholding tax deduction made in your case. To do this, you must contact the competent tax authority (tax authority in your canton of residence) by 31 March.

Note on subsequent ordinary assessment: If the NOV is applied for by Swiss resident withholding taxpayers with an annual gross income below the threshold, this also has a legally binding effect for all future years. However, this does not apply to withholding taxpayers who are not resident in Switzerland (so-called quasi-resident = tax domicile abroad, place of work in Switzerland). The requirements for filing the NOV are met if at least 90% of the worldwide gross earned income was taxable in Switzerland in the corresponding tax year.

What do these changes entail and what does it mean for you in concrete terms?

• Discontinuation of the “D” supplementary income tariff
• Settlement according to monthly model – valid for cantons AG, AI, AR, BE, BL, BS, GL, GR, JU, LU, NE, NW, OW, SG, SH, SO, SZ, TG, UR, ZG, ZH
• The month is considered the tax period

• The rate-determining income is calculated from the total monthly gross income (hourly wage based on 180 hours per month / daily wage based on 21.667 days per month).
  Calculation according to annual model – valid for cantons FR, GE, TI, VD, VD

• The year is considered the tax period
  • The rate-determining income is calculated from the total gross income subject to tax in the year in question (hourly wage on 2,160 hours per year / daily wage on 260 days per year).

Important note for withholding taxpayers with several employers and part-time employees

If the employer knows the total employment level of the employee, the salary for the rate-determining income is converted to the effective total employment level of all gainful activities.

If the employer does not know the employee’s total degree of employment, the wage for the rate-determining income is calculated on the basis of a degree of employment of 100%.

If the employer knows the total income of the employee, the wage for the rate-determining income is applied to the actual total gross income.

For a correct calculation of the rate-determining income, withholding taxpayers with several employment relationships and/or part-time employment must therefore disclose the total degree of employment. This applies to all income from employment and/or self-employment.

If neither the workload nor the salary earned from another activity is disclosed to SPTS Portage, each employment relationship must be offset against a 100% workload for the rate-determining income.

CAN PROFESSIONAL EXPENSES BE CLAIMED VIA SPTS PORTAGE?

Expenses must always be legitimate business expenditure. Only the customer can determine at any time whether the expenses are legitimate business expenses.

For this reason, we strongly recommend that the Employee invoice the customer directly for expenses. Another option is for the creditor itself (e.g. hotel, airline, car rental company etc.) to invoice the customer directly. The benefit to the Employee in the case of direct payment by the customer is that there is no salary component involved since the customer is not paying any salary and therefore does not need to issue a salary statement.

The advantage for the Employee with the client paying the expenses directly is that the SPTS Portage costs will not be charged as it is not within the invoice to the client. Furthermore, he will be able to close the topic of expenses as he does not have to answer further questions of SPTS Portage and does not have to file a detailed expense report with SPTS Portage.

If SPTS Portage pays the salary plus expenses to the Employee, there is always the possibility that they will be a salary component subject to OASI, and the corresponding note will always be made on the salary statement (cf. Guidelines on filling out salary statements or pension statements, Form 11). If SPTS Portage is subjected to a OASI/SUVA audit, SPTS Portage requests the employee to answer the questions of the auditor in case there are any related to the expense reports.

Claim expenses through SPTS PORTAGE:

If the customer does not wish to make any direct payment to the Employee, he can claim the expenses through SPTS Portage as SPTS Portage adheres to the art. 327a of the code of obligations in Switzerland. As per art. 327a para. 1, the employer has to reimburse the employee for expenses that are necessary to fulfil his work at places beside the normal workplace and maintenance of such a place. If the employer does not offer a suitable workplace, then the use of the home office is necessary and has also to be reimbursed. The Employee is required to read and comply with the rules governing expenses (Expense policy).

In the event that the Employee acts with fraudulent intention when claiming expenses, he will be liable for prosecution.

Expense amounts in a foreign currency must be converted into Swiss francs by the Employee.

WHY DO THE INVOICES OF SPTS PORTAGE HAVE VAT?

SPTS Portage as a PLC has more than CHF 100’000.- turnover per year and therefore legally has to add 7.7% VAT.

For staff leasing, the VAT law requires us to add 7.7% to the full salary costs and not only to the service fee (Art. 21 para. 2 fig. 12 VAT law).

If work is done for legal entities abroad, SPTS Portage can invoice without VAT in line with the VAT law.

DO I HAVE TO FILE A TAX REPORT EVEN THOUGH I AM TAXED AT SOURCE?

If your salary is above CHF 120’000.- per year you will automatically receive a tax report to file by the cantonal tax office.

Otherwise, the deduction of your employer is sufficient. Based on your request, the tax authorities can send you a tax report to file.

ARE COMMUTE TO WORK PAID BY THE EMPLOYER AS EXPENSE OR DEDUCTIBLE FROM TAXES?

The commute to work cannot be claimed as expenses and needs to be part of the salary if paid by the employer.

Social security, pensions and insurances 

---

HOW DOES HEALTH INSURANCE WORK?

Health insurance for medical expenses is required under Swiss law. This private insurance, which must be taken out within 3 months of your arrival in the country, is the responsibility of the employee. The amount varies depending on the level of cover you require.

WHAT ABOUT MY PENSION?

The Swiss pension system is based on 3 “pillars”:

• Pillar 1 (AVS) is compulsory and is deducted directly at source.
• Pillar 2 (LPP) is also compulsory and is deducted directly at source.
  The money becomes available upon retirement or upon your departure from Switzerland (outside the EU). You may also release this capital if you are creating a company or purchasing your primary residence. Additional contributions are tax deductible.
• Pillar 3 is optional and available from banks or insurance companies. This pillar offers tax benefits.

MORE ON THE SOCIAL SYSTEM IN SWITZERLAND:

The Swiss retirement provision is based on three pillars and has proven itself of value in international comparisons.

• First Pillar (AVS, DI, EL)

The first pillar is based on the principle of solidarity, which means that every employee as well as every employer is obligated to pay monthly contributions. These contributions are used to pay out retirement pensions to senior citizen.

Retirement age for men is set at the age of 65 years and for women at the age of 64 years.

The purpose of the first pillar is to provide financial security for the livelihood of retired people (AVS), disabled people (DI) and people with a loss of income (EL). The main goal of this pillar is to secure livelihood.

•  Second Pillar (LPP BVG), (LAA, UVG)

The second pillar consist of mandatory occupational benefit insurance/ pension fund (LPP, BVG). In sum BVG and AVS are intended to cover 60% of one’s previous salary. Compared to pillar one this pillar is not based on the principle of solidarity. Even though all employees are obligated to pay contributions, these contributions are saved for personal use later in life. This pillar is intended to ensure personal saving to guarantee maintenance of the standard of living for people in gainful employment.

Contributions to the pension fund are mandatory by law and the employer is obligated to pay at least 50%.

• Third Pillar

This pillar is a private, voluntary, and flexible addition to mandatory provision. Its aim is to close any pension gaps that are not covered by the AVS, DI and BVG pensions. It should also enable one to meet one’s individual wishes for a fulfilling life after retirement.

Pillar three is divided into tied pension provision (Pillar 3a) and flexible pension provision (Pillar 3b). Payments into 3a pension provision can be deducted from taxable income, whereas 3b flexible pension provisions is only tax-privileged subject to certain conditions. Pillar 3a is tied to certain conditions concerning withdrawals and the contributions are limited by a specified maximum amount.

The third pillar aims to complete people’s income after retirement.

WHICH SOCIAL DEDUCTIONS ARE DONE BY SPTS PORTAGE?

SPTS Portage does deduct all social deduction as per Swiss law.  All the deductions are to be calculated based on the gross salary.

If an individual’s relevant pay does not exceed CHF 2300 per calendar year for a given employment relationship, contributions will only be collected on request.

Persons who are employed in private households must always pay contributions.

Persons under 26 years of age will be exempt from this rule until 31st December of the year in which they turn 25, provided that their income does not exceed 750 francs per year and per employer. However, insured persons may ask to pay contributions.

Persons who are paid by dance or theatre producers, orchestras, phono-graphic and audiovisual producers, radio and television and schools in the arts sector must pay contributions in all cases.

EMPLOYEES/FREELANCERS/CONTRACTORS FROM THE UK:

Following the UK’s exit from the EU and the end of the withdrawal period agreed between the two parties on 31 December 2020, the Agreement on the Free Movement of Persons (AFMP) between Switzerland and the EU no longer applies with the United Kingdom. From 1 January 2021, UK citizens are no longer citizens of the EU; instead, they have the status of third-country citizens.

From 1 January 2021, UK nationals will no longer be considered EU citizens but third-country nationals.

New employees/freelancers/contractors with UK nationality as of 1 January 2021

Due to the priority of nationals, an application for a permit for a UK citizen must now be processed in the same way as an application for a third-country national. This means that persons from Switzerland and the EU/EFTA states have priority.

As a result, SPTS Portage cannot hire employees without a residence permit in Switzerland with UK citizenship in the Staff Leasing.

You can find more information on this topic on the website of the State Secretariat.

AS OF WHEN DO I NEED TO PAY PENSION CONTRIBUTIONS?

You are liable to contributions if you meet the following requirements:

• unlimited assignment or
• limited assignment longer than 13 weeks
• being subjected to a CBA, if you have children

HOW CAN PENSION FUNDS BE TRANSFERRED TO SPTS PORTAGE?

Your pension funds accumulated at your former employer, or the collection funds association may be transferred to SPTS pension funds anytime.

Please be advised that you get registered with the pension fund the month following your first salary payment. Should your credit balance already be transferred before your first salary payment, the pension fund will keep it and match it with your account as soon as you are enlisted.

IS THERE A SUPPLEMENTARY PENSION SOLUTION?

Yes, we do offer a supplementary pension solution.

EARLY RETIREMENT – ARE CONTRIBUTIONS STILL TO BE PAID?

Your duty to pay contribution with the pension fund ends with your retirement. An early retirement does not stop your duty to pay pension contributions. You are also still obliged to pay AHV contributions until reaching the lawful pension age. It is irrelevant if retirement funds have already been obtained or not.

DOES SPTS PORTAGE ISSUE INTERIM EARNINGS STATEMENTS FOR THE UNEMPLOYMENT OFFICE?

Employees working within interim earnings receive the interim earnings statement for the unemployment fund department (RAV) at the till the 5th of every following month. In order to prevent fraud, it is not allowed to issue an interims earnings statement during the current month, it may only be issued once the month has ended.

If you have issued your invoice in foreign currency, the interim earnings statement may only be issued after we paid the salary. We are unable to take over the currency risk since your salary is depending on the current exchange rate. If you work within the interim earning, we suggest to always invoice in CHF in order to avoid waiting periods for your unemployment benefit.

The interim earnings statement will show following note:

The insured person has registered with us all working hours to date. Should working hours be registered after the interim earnings statement has been issued, the full responsibility is with the insured person to declare these with the unemployment department (RAV), neglect is liable to prosecution. SPTS Portage waives all liability for any incorrect information submitted.

UNEMPLOYMENT INSURANCE FOR PLC/LLC OWNERS:

You may apply for unemployment benefits at the responsible RAV/unemployment office because you are not within an employer similar position at SPTS Portage. However, it is required that you have received at least 6 months of salary payments by SPTS Portage.

With a longer employment for a third party (company) the entitlement for unemployment insurance cannot be denied with the reason of employer similar position of another company.

If the insured person was employed for at least 12 months within the last 24 month the entitlement for unemployment support is generally given. If of these 12 months at least 6 months before unemployment have been with a Payroller, the entitlement is possible also without the insolvency of the own PLC/LLC. Maybe there is the need of treating it as a partly self-employment because of the own company. If you are getting unemployed with your own PLC/LLC, the own company as to be forfeited. With a payroller, this problem can be bypassed as the employment was not with the own PLC/LLC but the Payroller as employer.

HOW DO I CONVERT A MONTHLY SALARY INTO AN HOURLY SALARY?

You only know the monthly salary, but you need to have an hourly salary?  You need to know the daily work hours of the company, the total amount of holidays and bank holidays per year that are paid by the company.

Assumption:

Daily work hours 8h, 30 Holidays, 9 bank holidays

Gross salary per year CHF 66’950 incl. 13. month share

Which gives = 365 days – 104 weekends – 30 holidays – 9 bank holidays = 222 net working days per year

222 working days x 8h per day = 1’776 net working hours per year

CHF 66’950/1’776 hours = CHF 37.69 gross salary per hour

What is the holiday withholding for hourly and daily salaries?

The number of holidays varies depending on the company or age and can range from 20 to 30 days. Usually, temporary employees receive between 20 and 25 days of vacation per year. For each hour worked, a holiday reserve is calculated (8.33% for 20 holiday days and 10.64% for 25 holiday days), which is paid out when the employee obtains or leaves the company. This is not a deduction, but rather a temporary reserve to which the temporary employee is entitled.

How to calculate the holiday compensation within a monthly salary upon termination of the contract:

In order to be able to calculate the holiday compensation the following information is needed:

• Start date of contract if during the course of the year
• Termination date of contract
• Number of holidays according to contract

This example will use the following information:

• Start of contract: 11.02.2019, Termination of contract: 19.08.2019
• 25 days holiday entitlement per year
• First the total amount of working days is to be calculated, in this case from 11.02. – 19.08.2019 it is 190 days.
• A year has 365 days,
• 190 days / 365 days x 100 = 52.1% of the year the person has been employed
• 25 days holiday compensation per year: 100 x 52.1 = 13 days Holiday entitlement
• If someone works part time e.g. 80% the holiday entitlement may be reduced pro rata.
• 13 days / 100 x 80 = 10.5 days with 80% workload

SICKNESS INSURANCE OBLIGATION FOR CROSS BORDER COMMUTERS WORK IN SWITZERLAND:

In principle, persons domiciled abroad who work in Switzerland need to take out Swiss health-insurance cover. Some exceptions may apply depending on the employee’s country of domicile and nationality.

Insurance at place of work for cross-border commuters from EU/EFTA countries

Following the harmonization of social-security systems introduced in 2002 by the Agreement on the Free Movement of Persons (AFMP) and the EFTA Agreement, the obligation to take out health insurance is based on the place of employment. Anyone working in Switzerland is required to take out compulsory Swiss health insurance, as are all members of their family not in gainful employment.

This rule notably applies to cross-border commuters who are nationals of an EU or EFTA state.

Beginning and end of cover

Cross-border commuters who are EU/EFTA nationals and hold a G work permit must have Swiss health insurance from the date their employment contract commences. They have three months in which to enroll with a Swiss health-insurance fund. If they fail to do so, they may be automatically enrolled with a health insurance fund – with a premium surcharge for belated admission in the absence of an excuse for the delay – and are required to pay the costs of any medical treatment received prior to the date of admission themselves.

The obligation to have health-insurance cover ends when the employment contract ends.

Option right

Switzerland has however also concluded agreements with the neighboring countries (Germany, Austria, France, and Italy) granting persons domiciled there the option of taking out health insurance in their country of domicile. See table below “Requirements governing compulsory Swiss health insurance for EU/EFTA residents”.

Persons domiciled in those four countries who do not wish to take out Swiss health insurance must present an exemption request in the three months following the commencement of their contract to the relevant authority in the canton in which they work.

In March 2015 the Swiss Federal Supreme Court issued a ruling on the exercising of option rights in health insurance. According to this ruling, the “tacit exercising” of the option right does not have legal force. Cross-border commuters who have hitherto been insured abroad rather than in Switzerland without having submitted a formal request for exemption from the insurance obligation in Switzerland may take out insurance cover in accordance with the Health Insurance Act. They must obtain confirmation from the relevant office in the canton where they work that they have not yet exercised their option right with legal force. By presenting this confirmation, they will then be accepted by the Swiss health insurer.

Exercise of option right with France

Cross-border commuters insured in France and enjoying the Swiss health-insurance exemption right must complete the form below “Choice of health-insurance system” and return it, signed by the French Caisse primaire d’assurance-maladie (CPAM), to the relevant authority in the canton in which they work within 3 months. Persons insured in Switzerland who move to France and decide to take out health insurance there must rapidly send a copy of this form, signed by the CPAM, to their Swiss health insurer in order to terminate their cover in Switzerland.

The modalities for exercising the option right are set out in the agreement dated 7 July 2016 between Switzerland and France.

Can I join the voluntary AVS/OASI/DI after leaving Switzerland?:

Being no longer subject to the compulsory AVS/ OASI/DI/EO, Swiss nationals and EU or EFTA citizens who leave Switzerland, can, under certain conditions, join the voluntary OASI/DI.

Conditions

• To have Swiss nationality, or that of a European Union (EU) or European Free Trade Association (EFTA) member state;
• To reside outside the EU or EFTA;
• To have been insured under the compulsory AVS/OASI/DI/EO scheme for at least five consecutive years;
• To submit the membership application form within 12 months after leaving the compulsory OASI/DI/EO.

Membership is granted on an individual basis. Each member of the family must submit a separate application form.

If you are under 18 or have been exempt from paying contributions towards the compulsory OASI/DI/EO scheme, years of residence in Switzerland count as years of insurance. Click here for More information 

Family Allowance:

---

I HAVE CHILDREN, AM I ENTITLED TO FAMILY ALLOWANCES?

Employees working in Switzerland are entitled to apply for family allowances. You must, however, provide proof that you are not receiving family allowances from your country of origin.

The Federal Law on Family Allowances regulates child and education allowances.

For children up to 16 years you will receive a child allowance of at least 300 francs a month for each child. For children aged between 16 and 25 who have not yet finished their initial education, you are entitled to an education allowance of at least 400 a month for each child., in the canton of Geneva.

The allowance amount depends on the canton of your employer. SPTS Portage is based in the Geneva canton, therefore you will receive CHF 300.- child allowance and education allowance of CHF 400.-.

If the allowance for the same child can be claimed by more than one person, the order of priority in which one can claim is as follows:

1. the employed person
2. the primary caregiver
3. the person the child lives with the majority of time
4. the person who works in the same canton the child lives
5. the person who receives the higher income subject to AHV contributions from their employer
6. the person who receives the higher income subject to AHV contributions from being self-employed

You live in Switzerland

• Employees and self-employed people who live in Switzerland and are paid at least 592 francs per month are entitled to family allowances.
• Unemployed people are normally entitled to family allowances unless their annual taxable income exceeds CHF 42,660.
• Special rules apply to people working in agriculture under the Federal Act on Family Allowances for Agricultural Workers.

Seasonal workers and cross-border commuters

As a cross-border commuter from an EU/EFTA state, you are entitled to Swiss family allowances for your children even if they live in an EU or EFTA country. If your partner works in your and your children’s country of residence, you receive the family allowance from that country. You will be paid any difference between that and the family allowance payable in Switzerland.

Claiming family allowances

Family allowances are not paid out automatically, you have to apply for them. You may also claim up to five years of arrears.

• Employees must apply to their employers for family allowances. The employer will forward the application to the relevant family compensation fund for processing. If the application is approved by the compensation fund, the employer pays the allowance every month additionally to the salary.
• Self-employed people must contact the family compensation fund in order to apply for family allowances.

Unemployed people must apply to the cantonal family compensation fund, which is run by the cantonal AVS/OASI compensation funds.

SPTS Portage will ONLY pay the family allowance once we have received the money from the canton and not before. Monthly salaries will receive the family allowance together with their monthly salaries. 

Public Holidays:

---

The national holiday (1st of August) is the only federally regulated paid public holiday. It is equivalent to a Sunday, workfree and mandatory to be paid by the employer. Regulations for work on Sundays are applicable for work being conducted by employees on 1st of August.

Besides the 1st of August the cantons are entitled to define 8 public holidays being equivalent to Sundays (Geneva public holidays). Work is prohibited on these days same as on regular Sundays. The employer is legally not obliged to pay theses 8 Canton public holidays. It is permitted to include in the contract that this worktime must be performed before or after the public holidays. However, it is common practice that the payment of these Canton public holidays is contracted for employees with monthly salaries.

if one gets sick on a public holiday, there is no entitlement for reimbursement. But if a public holiday coincides with your annual holidays, there is no vacation day deducted from your quota. Although employees on an hourly basis are not entitled to receive payment on Canton public holidays often this is contracted individually. Either a full day is granted or 3.157% (based on a 5-day week and 8 public holidays) are added to the hourly wage.

Should work be provided nevertheless, it is necessary to obtain the corresponding permission by all employer implicit to work law regulations. Reserved are individual regulations valid for certain groups of business operations or employees regulated in ordinance 2 in work law.

Administrative procedures

---

WHO TAKES CARE OF ADMINISTRATIVE TASKS?

SPTS Portage will take care of all the administrative part of your activity. You are free from all the constraints of billing and accounting and can focus on adding real value to your work.

I AM NOT SWISS OR A EUROPEAN CITIZEN, HOW WILL YOU MANAGE MY WORK PERMIT?

It is extremely difficult for non-Europeans to obtain a work permit. In most cases, only the end company by whom you are directly employed will be able to make this application.

HOW DO I REGISTER MY ARRIVAL IN SWITZERLAND?

Non-Swiss citizens must register with the authorities within 8 days following their arrival in Switzerland.

SPTS Portage will take care of this and will guide you through this process which can differ from one canton to the other.

AND MY FAMILY?

When you have obtained your work permit, your family may join you in Switzerland. Each member of your family must register and obtain their own residence permit.

Work contract termination

---

WHAT ARE THE PERIODS OF NOTICE FOR MY WORK CONTRACT TERMINATION?

The periods of notice for termination are:

• two (2) working days during the three-month trial period (reduced as per Art. 335b (2) Code of Obligations (CO)
• thirty (30) days after the trial period (termination can take place during a month, not only at the end of a month)

For Employees’ protection, the legislator requires that the one-month period of notice be complied with as per Art. 335(c)(1) and (2) CO. The Employee is requested to bear the periods of notice in mind. As soon as it becomes apparent that no more orders can be fulfilled, the Employee must notify us of this fact so that SPTS Portage or the Employee can give notice as a result of the order ending. 

The Employee should also draw the customer’s attention to this fact, so that the customer can advise in good time if there is no more work available. Furthermore, the Employee should note that, in the event of registering at the regional employment centres (RAV), the wages for the notice period must be claimed from the employer.

ARE THERE OTHER CAUSES OF CONTRACT TERMINATION?

• If the Employee does not submit any invoices for more than one month, the contract is automatically deemed to have ended. However, as soon as the Employee invoices new orders using SPTS Portage, the contract enters into force again. 

• SPTS Portage reserves the right to cancel the contractual relationship immediately and without stating reasons in the following situations:

• • False or improper statements made by the Employee
  • Misuse of invoicing
  • Breach of statutory or CEA provisions concerning working hours and minimum wage
  • Fraud and forgery of documents

• Right to additional reasons reserved

DOES THE TERMINATION NEED TO BE AT THE END OF THE MONTH?

As per art. 335c Abs. 1 Code of Obligations

1. The employment relationship may be terminated at one month’s notice during the first year of service, at two months’ notice in the second to ninth years of service and at three months’ notice thereafter, all such notice to expire at the end of a calendar month.
2. These notice periods may be varied by written individual, standard or collective employment contract; however, they may be reduced to less than one month only by collective employment contract and only for the first year of service.

Special notice:

If a termination is delivered within the first year of service, the notice period of 1 month is applicable even if the notice period only ends within the second year of service.

SPTS Portage is a service providing company dedicated to consultants, contractors companies and organisations.

Do not hesitate to contact SPTS Portage should you have any questions. 

Choosing SPTS Portage is choosing a high quality and cost-efficient services with flexibility and responsiveness. Our services are tailored to your needs.