Invoicing for seasonal and temporary workers
Introduction
The use of seasonal and temporary workers is a daily reality for many sectors in Switzerland: hospitality and catering, agriculture, construction, events and retail. These temporary collaborations raise complex practical questions regarding invoicing.
Who should invoice: the placement agency, the direct employer or the self-employed worker? What mandatory information must appear on invoices for short assignments? How should you manage VAT on temporary services, withholding tax for foreign workers and social security contributions?
These questions are legitimate. The rules differ depending on the worker's status and the type of contract. An error in invoicing can lead to administrative complications, tax adjustments or disputes with the authorities.
This practical guide clarifies the legal obligations and concrete procedures for correctly invoicing seasonal and temporary services. You will find invoice examples, the mandatory information for each situation, and the applicable rules regarding VAT and withholding tax. Whether you are a placement agency, an SME employing seasonal workers or a self-employed worker, you will know how to invoice in full compliance.
📌 Summary (TL;DR)
Invoicing for seasonal and temporary workers depends on status: placement agencies invoice the employer for provision of workers, self-employed workers invoice their services directly, and direct employers do not invoice but issue payslips. Mandatory information includes the assignment period and detailed hourly breakdown. VAT applies according to the usual rules, and withholding tax concerns foreign workers without a C permit.
📚 Table of contents
- Seasonal and temporary work in Switzerland: legal framework
- Who invoices: the company, the agency or the worker?
- Mandatory information on invoices for temporary workers
- VAT on temporary and seasonal services
- Withholding tax for foreign workers
- Social security contributions and insurance for temporary workers
- Templates and invoice examples for temporary workers
- Step-by-step invoicing procedure
- Payment management and reminders for short assignments
- Common errors to avoid
Seasonal and temporary work in Switzerland: legal framework
Seasonal work refers to an activity linked to a recurring natural or commercial cycle (tourist season, grape harvest, festivals). Temporary contracts cover a one-off assignment of fixed duration, often through a placement agency.
The sectors concerned include tourism (ski resorts, hospitality), agriculture, catering and events. These contracts are governed by the Swiss Code of Obligations.
The maximum duration varies according to collective agreements. Workers benefit from the same fundamental rights as permanent employees: minimum wage, social insurance, accident protection.
Who invoices: the company, the agency or the worker?
Three models of temporary invoicing coexist in Switzerland, each with its distinct administrative and legal implications.
Model 1: The self-employed worker invoices the client company directly. They manage their own social security contributions and VAT.
Model 2: The temporary placement agency invoices the user company and employs the worker under a seasonal contract.
Model 3: The direct employer hires the seasonal worker with an employment contract. No invoicing, but payslips.
Self-employed seasonal workers
A seasonal worker can invoice as self-employed if they meet the criteria of the AVS compensation funds: freedom of organisation, own economic risk, several clients, personal infrastructure.
Registration in the Commercial Register is mandatory for certain activities. Self-employed AVS status must be confirmed by the competent compensation fund.
The invoice must mention: full identity, AVS or IDE number, description of the service, period, rate, and a QR-invoice compliant with Swiss standards.
Temporary placement agencies
The placement agency operates in a tripartite model: it employs the temporary worker and makes them available to the user company.
The agency invoices the client company with a margin on the worker's hourly rate. It assumes all social security contributions, mandatory insurance and legal compliance.
BePaid simplifies this temporary invoicing with adapted templates, automatic VAT calculation and payment tracking for each assignment.
Direct employers of seasonal workers
When a company directly hires a seasonal worker, it establishes a fixed-term employment contract. There is no invoicing in this case.
The employer must issue monthly payslips, declare employer contributions (AVS, LAA, LPP according to the threshold) and comply with all employment law obligations.
This distinction is important: an employee cannot invoice their own employer. Confusion between statuses can lead to administrative and tax penalties.
Mandatory information on invoices for temporary workers
An invoice for a temporary assignment must contain all Swiss legal information: full identification of the parties (name, address, IDE or AVS number), date of issue, unique invoice number.
The description of the service must be precise: nature of the work, period covered (start and end dates), hourly or flat rate applied.
The compliant QR-invoice has been mandatory since 2020. It facilitates payment and bank reconciliation. For seasonal contracts, mention the reference to the framework contract if applicable.
Period and duration of the assignment
Clearly indicate the start and end dates of the assignment on each invoice. This precision is essential for tax and social security audits.
For partial or interrupted assignments, invoice pro rata for the days actually worked. Document any change in duration.
In case of extension, issue an amendment to the initial contract and mention it on the new invoice. This traceability protects both parties in case of dispute.
Detailed hourly breakdown
A precise timesheet is essential for temporary invoicing. Create a table with: date, start and end times, break, daily total.
Distinguish normal hours from overtime if different rates apply. Mention the hourly rate for each category.
Presentation example: "40 normal hours at 45 CHF/h = 1,800 CHF / 5 overtime hours at 56.25 CHF/h = 281.25 CHF". Keep signed timesheets as supporting documents.
VAT on temporary and seasonal services
VAT liability occurs as soon as annual turnover exceeds 100,000 CHF. Below this, registration remains voluntary.
Placement services and work services are subject to the standard rate of 8.1%. Certain exceptions exist for cross-border workers according to bilateral agreements.
BePaid automatically calculates VAT on your invoices and facilitates your quarterly statements. Consult our guide on VAT in Switzerland for more details.
VAT for placement agencies
Placement agencies must determine their VAT calculation base: either the margin (difference between selling price and personnel cost), or the total amount invoiced.
The margin method is often more advantageous but requires rigorous accounting. The choice between effective method and flat rate depends on your cost structure.
Declare VAT quarterly or half-yearly depending on your turnover. Keep all expense receipts for input tax deduction.
VAT for self-employed seasonal workers
If your annual turnover exceeds 100,000 CHF, VAT registration becomes mandatory. Below this, you can choose voluntary liability.
VAT registration increases your prices by 8.1% but allows you to recover VAT on your business purchases. Assess the impact on your competitiveness.
Choose between statements based on the invoice or based on payment according to your cash flow. The frequency (quarterly or half-yearly) depends on your business volume.
Withholding tax for foreign workers
Foreign workers without a C permit (permanent residence) are subject to withholding tax. Withholding applies to holders of B and L permits and to cross-border workers.
Rates vary according to canton, family status and income level. They are deducted directly from the salary or invoice.
The employer or placement agency is responsible for withholding and paying to the cantonal tax authorities. This information must appear on the invoice or payslip to ensure transparency.
Who makes the withholding?
For a salaried employee, the direct employer withholds tax at source on each salary and pays it monthly to the cantonal tax authorities.
For a self-employed foreign worker, the situation is more complex: depending on the canton, they may be subject to self-assessment or to withholding by the client.
Placement agencies assume this responsibility for their temporary workers. Use the official cantonal scales and declaration forms specific to your canton of residence.
Mention on the invoice
When withholding tax applies, clearly present the calculation on the invoice: gross amount of the service, rate and amount of withholding, net amount payable.
Example: "Service: 5,000 CHF / Withholding tax (4.5%): -225 CHF / Net payable: 4,775 CHF".
Keep a copy of each invoice and tax payment certificates for 10 years. These documents are essential during tax audits or for annual regularisation.
Social security contributions and insurance for temporary workers
Mandatory social security contributions include AVS/AI/APG (10.6% shared), unemployment insurance (2.2% up to 148,200 CHF), occupational pension LPP (from 22,050 CHF annual salary) and accident insurance LAA.
For a self-employed person, only AVS is mandatory (approximately 10% of net income). They must insure themselves against accidents and can contribute voluntarily to the second pillar.
For a temporary employee, the employer or agency assumes all these contributions. These costs represent approximately 15-20% of gross salary and directly impact the invoicing rate.
Templates and invoice examples for temporary workers
Example 1 - Self-employed mountain guide: "Service: Glacier hiking accompaniment, 15-17.08.2024 / 16 hours at 85 CHF/h = 1,360 CHF / VAT 8.1%: 110.16 CHF / Total: 1,470.16 CHF".
Example 2 - Agency to restaurant: "Provision of waiter, week 32/2024 / 42 hours at 65 CHF/h = 2,730 CHF / VAT 8.1%: 221.13 CHF / Total: 2,951.13 CHF".
BePaid automatically generates compliant invoices with Swiss QR-code, VAT calculation and mandatory information. Adapt the templates according to your sector of activity.
Step-by-step invoicing procedure
1. Contract: Establish a written mandate or contract specifying rate, duration and conditions.
2. Tracking: Document hours worked daily with a signed timesheet.
3. Creation: Generate the invoice with all mandatory information and detailed breakdown.
4. QR-invoice: Add the compliant QR-code to facilitate payment.
5. Sending: Transmit the invoice and activate automatic payment tracking.
6. Reminders: BePaid sends automatic reminders in case of delay, essential for short assignments.
Payment management and reminders for short assignments
Temporary assignments require short payment terms, generally between 10 and 30 days. Rigorous monitoring is crucial to maintain healthy cash flow.
Set up an automatic reminder system: first reminder at D+5 of delay, second at D+15, formal notice at D+30. BePaid automates this process.
Bank reconciliation allows you to instantly validate payments received via QR-invoice. You immediately identify unpaid invoices and can react quickly. This responsiveness is essential for short-term seasonal contracts.
Common errors to avoid
Status confusion: An employee cannot invoice their employer. Verify the independence criteria before choosing the status.
Forgotten withholding: Foreign workers without a C permit must be subject to withholding tax. Forgetting this exposes you to penalties.
Incorrect VAT: Wrong rate, missing mention or incorrect calculation. BePaid automatically calculates VAT at the rate of 8.1%.
Missing information: Period, hourly breakdown, IDE number. Use compliant templates to avoid these omissions.
Missing QR-invoice: Mandatory since 2020. BePaid automatically generates QR-invoices compliant with Swiss standards.
Invoicing for seasonal and temporary workers requires particular attention to Swiss legal specificities. Whether you are a self-employed seasonal worker, placement agency or direct employer, the rules vary according to your status: detailed mandatory information, precise hourly breakdown, correct application of VAT and management of withholding tax for foreign workers.
Short assignments require rigorous invoicing and efficient payment tracking to avoid delays that weigh on your cash flow. The most frequent errors concern the omission of information specific to temporary workers, incorrect application of VAT or incorrect calculation of tax withholding.
BePaid simplifies this complexity by allowing you to create invoices compliant with Swiss standards in a few clicks, with automatic VAT management, payment tracking and automated reminders adapted to short assignments. Test the platform free of charge to manage your temporary invoices without administrative complications.
