A Swiss company wants to be more active on "Social Media" and, therefore, advertised the position of "Social Media Responsible". A suitable candidate was quickly found.

During the interviews, it turns out that the employee not only has the required skills but is also a perfect personal match for the company. However, she does not want to move to Switzerland but would like to work almost exclusively from her Polish home office.

The Swiss company is open to this request.

Question

What does the Swiss company have to consider if they hire an employee who wants to work from her Polish home office?

Challenges & Solutions

Labor law

The future employee will be subject to Polish labor law since she will mainly work in Poland. For this purpose, a Polish employment contract must be drawn up. In this context, the integration of the Swiss employer's regulations must also be considered.

If Polish regulations are more advantageous than Swiss regulations (e.g., vacations, working hours), the more advantageous Polish regulations are generally decisive.

Social insurances

With the considerable Polish working days, the employee will be subject to Polish social security. There are different possibilities for the settlement. On the one hand, the company can be registered, on the other hand, there is also the possibility that the employee takes over the payments to the social security authorities directly.

For the occasional Swiss working days, the A1 certificate for social security subordination must be obtained.

Income Taxes

The employee is responsible for paying the monthly income taxes herself. This cannot be taken over by the Swiss employer.

For any Swiss working days, Swiss withholding taxes are owed, which must be calculated, paid, and deducted from the employee's salary.

Permanent establishment

The Swiss company does not want to create a permanent establishment in Poland. It is therefore advantageous to exercise appropriate caution when drawing up the employment contract and to prohibit the employee from negotiating and/or signing contracts on behalf of the company. In addition, she should not be given power of attorney.

Payroll

The involvement of a Polish payroll provider will be essential. The payroll provider will prepare the monthly payroll and instruct the employee on how to make payments to the Polish social security agency and the Polish tax office. In addition, the payroll provider will monitor the payments received by the authorities.

Work permit

For Poland, the Polish employee does not need a work permit. For the occasional Swiss working days, however, a permit is mandatory. The best (and only) option here is the registration procedure.

Conclusion

"Remote work" is becoming more and more the norm. Companies that are open to "remote work" and do not shy away from the initial effort involved in drawing up the employment contract and setting up the foreign payroll open up much greater access to qualified workers than companies that concentrate solely on the domestic market for skilled workers.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.