In parts 1-3 of our series "Strategic use of global employee mobility", we explained how companies can attract international specialists in a targeted manner, how remote work and workation can be used to attract talent and what needs to be considered when hiring from abroad and subsequently relocating to Switzerland. In this fourth part, we look at the basics of employment abroad with comprehensive onboarding in Switzerland and subsequent return to the home country - as a strategic instrument in talent management.
Nowadays, global companies are increasingly focusing on the targeted recruitment of international talent directly abroad, offering them a structured training and integration phase at the Swiss company location and then relocating the employees back abroad. This approach allows employees to be closely integrated into the company's processes and culture before they are permanently assigned to global locations.
Why does this model make strategic sense?
Employees who are hired directly in their home country undergo an intensive training phase at the Swiss headquarters, often lasting several months. They get to know the company, the internal processes and, above all, the corporate culture directly on site. This experience facilitates subsequent collaboration between different locations and sustainably increases the efficiency of international teams.
In addition to the close connection to company processes, this model has further strategic advantages: It enables effective knowledge transfer, increases employee motivation through international experience and helps to ensure that country-specific characteristics are better understood and taken into account. The company also offers international talent attractive prospects, which strengthens its competitiveness on the global talent market.
Practical examples
EU: A project manager employed in France receives a four-month introduction at the company's Swiss headquarters. After this training, he takes over the coordination of international projects from France, working closely with Swiss colleagues.
Third countries: A software developer from Mexico undergoes three months of training at the Zurich site and then returns to Mexico. From there, she supports IT projects and acts as an important interface to the Swiss head office.
Practical implementation
In order to keep the administrative effort and possible legal risks to a minimum, implementation should be as clearly structured and simple as possible. The following points in particular should be taken into account:
- Work permit: The first step is to ensure that the employee in question can obtain a work and residence permit for Switzerland. If possible, these clarifications should take place before the contract is signed so that further clarifications regarding the employment contract, income taxes and social insurance can be made on the basis of the essential work permit.
- Employment contract: In principle, the employment contract is with the foreign company and the employee is only working in Switzerland on a temporary basis. It should be noted that foreign employment law essentially applies, although the mandatory provisions of Swiss employment law and the local salary requirements for obtaining a Swiss work permit must also be taken into account.
- Social security: The aim is for the employee to have as continuous a "social security career" as possible in one country and not to trigger a temporary insurance obligation in other countries. In the case of countries with social security agreements, the relevant A1 or CoC certificates must be obtained, whereby any necessary previous insurance periods might need to be taken into account.
- Income taxes: Special attention is rightly paid to tax issues. It depends on the specific individual case whether a tax liability is triggered in Switzerland, whether it should be avoided or whether it should be deliberately triggered in order to benefit from the oftentimes lower income taxes in Switzerland compared to abroad. To this end, it is not only necessary to know the relevant provisions of the applicable double taxation agreements, but also to examine the local regulations (e.g. regarding the de facto employer in Switzerland) in detail.
Success factors for practical implementation
The successful implementation of this model undoubtedly requires clear structures and efficient planning.
Important points here include:
- Early clarification with regard to the necessary work permit in Switzerland and applying for it
- Comprehensive coordination of employment contracts, income taxes and social security to develop an optimal international assignment strategy
- Early and continuous communication between the locations involved
- Simple, transparent and easy-to-understand administrative processes
- Thorough preparation of employees for their role as a link between the locations
- Systematic handover and targeted integration into local teams upon return to the home country
Conclusion
The employment of employees abroad with temporary training assignments in Switzerland and subsequent return to their home country offers companies strategic advantages in the integration and qualification of international specialists that should not be underestimated.^The simplest and clearest possible structuring of the employment law, income tax and social security framework ensures that neither additional administrative obligations arise for the company nor unnecessary burdens for the employees. By planning ahead and clarifying the legal aspects at an early stage, possible risks can be effectively minimized and the advantages of this model can be optimally exploited.
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.
