Practical Information

Employment Law & Contracts

The Swiss Federal Department of Economic Affairs sets the guidelines for all employment contracts:

Employment contracts must at least indicate the names of the parties (employer and employee), the date of the start of the contract, the work to be done and the salary to be paid in remuneration. Whatever is not stipulated in the contract between the parties is often regulated by other laws and regulations, and in particular the Swiss Code of Obligations and collective labour agreements.

Employees are entitled to four weeks of holidays per year (five if you are under 20). Employment contracts or collective labour agreements may make provision for more but not less. The reason for holidays is to allow rest and they should not, therefore, be replaced by monetary compensation. However, if the contract is for a very short duration or if the work is irregular, it is possible for holidays to be paid in lieu at the end of each month. However, the payment in lieu must then be indicated clearly on the payslip and clearly separated from normal pay.

Swiss law does not stipulate a minimum wage. The salary is agreed between employer and employee when the employee is hired. If an employee is unable to work for reasons beyond the employee's control such as illness, accident, military service, etc., the law stipulates that the salary must continue to be paid for a limited time by the employer. This period depends on the length of the employment contract but the contract must be for a period of at least three months for this obligation to apply. As an employee, you have a duty to justify your absence, usually by submitting a medical certificate to the employer.

If you do not have a fixed-term employment contract, the contract may be terminated at any time, by either the employer or employee, with notice of termination being anywhere from one to three months. Should the employer choose to make it effective immediately, they are still obligated to pay the employee’s salary for the length of the notice period. For a fixed-term contract, notice may not be given prior to expiry of the period stipulated in the contract except for good cause or by mutual agreement.