Hire in Switzerland

Throughout a probationary period, either the employer or the employee retains the right to terminate the contract with a notice period of seven days. Exceptions to this standard can be established through a written agreement, a standard contract, or a Collective Labor Agreement (CLA). Nevertheless, the probationary period cannot surpass the legal maximum of three months.

As per Swiss legislation, the maximum weekly working hours for industrial workers, office personnel, technicians, and other staff members are restricted to 45 hours. For all other employees, the limit is set at 50 hours per week. Typically, most employees work between 40 and 42 hours weekly.

Under specific regulations, the maximum weekly working time may be temporarily extended by up to four hours, provided it does not exceed the annual average. Such extensions may be authorized by the State Secretariat for Economic Affairs (SECO) for certain categories of companies or employees or specific establishments, given there are valid justifications.

Employers are obliged to grant employees one day off each week, usually on Sunday, or a full weekday if circumstances don’t permit Sunday rest. Alternatively, employers may offer several consecutive days off or two half-days instead of a full day, provided the employee agrees to the alteration.

In Switzerland, there is no specified maximum work duration for top-level managers.

The determination of working hours is outlined in Article 12 of the Swiss Collective Bargaining Agreement on the Hiring of Services (GAV Personalverleih).

Overtime exceeding the maximum weekly working hours of 45 or 50 is governed by the provisions of the Employment Act. Overtime is defined as hours worked beyond the agreed-upon working hours but within the statutory maximum. It must be compensated at a premium rate of 25% above the normal hourly wage. However, for office workers, this rate applies only to overtime exceeding 60 hours per calendar year. Alternatively, both parties may agree to compensate overtime with equivalent time off.

Within the legal constraints of maximum working hours, alternative arrangements can be mutually agreed upon in writing, specifying different compensation terms (e.g., at 100% instead of 125%). Additional compensation can also be agreed upon, especially if the agreed salary is deemed to cover overtime adequately and the overtime hours are within reasonable expectations set forth in the contract. Employees with family responsibilities may be required to work overtime only with their consent.

The daily limit for overtime is typically two hours, while the annual limit is 170 hours for workers with a regular 45-hour workweek and 140 hours for those with a regular 50-hour workweek.

Exceptions to the maximum weekly working hours may occur in the following circumstances:

• – Urgency of work or extraordinary work orders
• – Inventory-taking, clearance, and liquidation tasks
• – Preventing or mitigating failures, provided the employer cannot reasonably resolve such issues otherwise.

There are two main laws regulating Occupational Health and Safety (OSH) in Switzerland:

• The Labor Law regulates work hours, health protection, workplace building standards and the protection of personal integrity.
• The Accident Insurance Law regulates the prevention of occupational accidents and diseases which are linked to work.

The cantonal labor inspectorates (SUVA) serve as the main accident insurance authority and the State Secretariat of Economic Affairs (SECO) enforce the laws. A coordination commission (EKAS) manages the inspection system aimed at accident prevention. Companies must consult OSH services if they have higher accident risks and employ more than 10 workers.

Industrial companies (e.g. factories manufacturing and processing goods and enterprises deploying machines or automatic processes) in Switzerland are required to furnish a written health and safety policy. This document is subject to review by the Cantonal Labor Authority.

The wage categories, allocations, and recorded wages within tempdata by the contracting parties form integral components of the CBA Staff Leasing. Employees are entitled to a 13th monthly wage, payable in November.

Swiss law lacks specific provisions delineating bonuses. Depending on its nature, a bonus is categorized either as a gratuity or as part of the employee’s salary. This distinction holds significance in Swiss employment law, as regulations governing gratuities offer greater flexibility compared to those governing salary payments.

The issuance of a gratuity is partly contingent on the goodwill of the employer. If the payment of a gratuity hasn’t been explicitly agreed upon, it is considered entirely discretionary. However, if agreed upon, it becomes obligatory, though the employer retains a degree of freedom in determining the amount.

Swiss Courts base their definition of a bonus on established principles derived from case law. According to decisions by the Swiss Supreme Court, if an employer consistently pays a “gratuity” for three consecutive years without explicit agreement, it becomes obligatory. An exception exists if the employer explicitly reserves the right to refrain from payment in writing. Nevertheless, even if such reservation is expressed, the payment remains mandatory if it’s considered merely a standard formula not reflective of the parties’ agreement.

Employment contracts often link bonus payment to specific objectives. Courts tend to categorize the bonus as part of the salary if the objectives are easily measurable. Conversely, if the objectives are vague or if the employer possesses considerable discretion in assessing their achievement, the bonus is more likely classified as a gratuity.

Both parties have the liberty to terminate indefinite contracts, allowing the employment relationship to conclude without a specific cause or justification, provided the required notice period is adhered to (“Kündigungsfreiheit”).

Terminating an indefinite-duration contract is permissible for any reason, yet it must not be wrongful or unlawful. Certain grounds cannot justify termination, such as factors related to individual characteristics, employee complaints regarding working conditions or contract breaches, union affiliation, or employer-initiated mass layoffs without proper consultation. In all cases, a fair procedure must be followed.

Employers in Switzerland are prohibited from terminating employment during the following periods, and any notice given during these periods is considered invalid:

• – During the other party’s compulsory Swiss military service, as well as during the four weeks preceding and following the service if it extends beyond 11 days.
• – When the employee, through no fault of their own, is unable to work or partially unable to work due to illness or accident. This provision applies for up to 30 days in the first year of service, 90 days between the second and fifth years of service, or 180 days thereafter.
• – Throughout the duration of an employee’s pregnancy and for 16 weeks following childbirth.

Unfair Dismissal / Remedies:

In the event of an unjust dismissal, the notice period remains in effect. However, the party found to have wrongfully terminated the contract may be required by the court to provide compensation of up to six months’ salary.

Collective Redundancies / Mass Layoff Rules:

Statutory regulations concerning mass layoffs are triggered when, within a 30-day period, the employer issues notices affecting:

• – At least ten employees in a company that typically employs between 21 and 99 workers.
• – At least 10% of the employees in a company that typically employs between 100 and 300 workers.
• – At least 30 employees in a company that usually employs more than 300 workers.

The regulations governing mass redundancies do not apply if business operations have been halted by a court order or if mass layoffs have occurred due to bankruptcy or an asset assignment through a composition agreement.

Prior to issuing notices, the employer must engage in consultations with either the employee representative body or directly with the employees. Simultaneously, the employer is obligated to inform the cantonal labor office in writing about the proposed mass layoffs. However, these entities hold advisory roles only, without the authority to prevent mass redundancies. Notices issued over an extended period but stemming from the same operational decision must be aggregated.

If the company typically employs at least 250 workers and intends to terminate at least 30 employees within a 30-day timeframe for reasons unrelated to individual employees, the employer must engage in social-plan negotiations with either the employee associations under the collective employment contract or with an organization representing the affected employees. Should these negotiations prove unsuccessful, an arbitral tribunal will establish a social plan through an arbitral award.

In general, fixed-term employment contracts conclude upon the agreed-upon end date, yet they can also be terminated with the same notice periods as permanent contracts:

• – During the initial three-month trial period: 2 working days’ notice at any time.
• – From the fourth to the sixth month: At least 7 days’ notice at any time.
• – From the seventh month onwards: One month’s notice at any time.

An assignment contracted for a specific duration (fixed-term employment) automatically concludes, except during the trial period.

Under all circumstances, the employment contract concludes upon the expiration of a valid work permit. Temporary employees (TEs) must inform the Employer promptly of a work permit’s impending expiry to facilitate necessary measures for renewal or extension.

If TEs seek to terminate their work contract, they must notify both the Employer and the assigned business. The assigned business has the authority to terminate the assignment and consequently the employment contract on behalf of the Employer.

The Employer retains the right to terminate the employment contract with TEs during periods of incapacity (due to illness or accident) according to the following notice periods:

• – 30 calendar days in the first year of service.
• – 90 days from the second to the fifth year of service.
• – 180 days from the sixth year of service.

Employees aged 50 and above, with a service tenure of 20 years or more, are entitled to a severance payment. In cases where the employment contract does not outline a severance provision, the court may grant an amount ranging from two to eight months’ salary. However, any employer contributions made to the employee’s pension fund throughout their employment can be deducted from the severance payment. Consequently, mandated severance payments are uncommon in Switzerland.

In accordance with Swiss legislation, non-competition clauses are permissible. However, due to their potential to restrict an employee’s economic freedom, they are subject to several constraints. These clauses must be established in writing.

The restriction on non-competition must be reasonably limited concerning location, duration, and scope to ensure that it does not unduly impede the employee’s future economic endeavors. Nevertheless, any non-competition clause that would compel the employee to entirely alter their professional activities will be rendered invalid as it would contravene public policy.

• A post-employment constraint on competitive activities holds validity and enforceability only if it is confined to a specific scope of work, a reasonable geographic region, and a sensible timeframe. Typically, the duration should not exceed one year (if based on the employer’s client knowledge) or three years (if reliant on manufacturing or trade secrets).
• Furthermore, a non-competition restriction is enforceable solely if the employee had access to the employer’s clientele or proprietary information during their employment, and the utilization of such knowledge could significantly detriment the employer.
• This restriction does not apply if the employer terminates the employment without just cause or if the employee terminates due to a justifiable cause attributable to the employer.
• If an employee breaches the restriction and is subject to a contractual penalty, they may lift the prohibition by paying the penalty, though they remain liable for any additional damages incurred. Moreover, with written agreement, the employer may insist that the employee continues to adhere to the non-competition restriction while seeking the agreed contractual penalty and further damages.

While non-competition clauses are prevalent in practice, they are not obligatory to be accompanied by financial compensation. Therefore, consideration is not mandatory for the validity of such clauses under Swiss law.

Regarding customer non-solicitation clauses, they are permissible, subject to comparable restrictions as non-competition agreements.

Similarly, employee non-solicitation clauses are permissible, also subject to similar restrictions as non-competition agreements.

Employers are obligated to record employees’ working hours according to Article 46 of the Employment Law (LTr) and Article 73 of Order 1 on the Employment Law. Hence, employers must establish a system for documenting both daily and weekly working hours of their employees, including compensatory work and overtime. Additionally, the employer must calculate the employees’ days off, whether weekly or compensatory, and any breaks exceeding half an hour.

The breakdown of employees’ work hours must be maintained by the company for a period of five years. Failure to adhere to this requirement may lead to various penalties, ranging from a warning to fines. In severe cases of employers violating employment regulations, especially those endangering employees’ lives or health, the law permits the possibility of shutting down the company.

Exceptions:

• Certain professions and businesses are exempt from regulations concerning working hours and time off. For instance, employees of international organizations or agricultural enterprises may be excluded.
• Provisions regarding the recording of working hours do not apply to employees in high managerial positions. This category encompasses individuals with substantial decision-making authority or the capacity to significantly influence critical decisions for the company.
• The responsibility for recording working hours is entirely waived for employees earning a salary subject to AVS of over CHF 120,000 (including bonuses) and enjoying flexibility in their work hours. This exemption must be stipulated in a collective bargaining agreement (either for the company or the sector) and must be formalized through a specific written agreement with each employee.

A partial or simplified recording, indicating only the total daily working hours, is permissible under the following circumstances:

• – A collective agreement negotiated between the employer and workers’ representatives (internal or external).
• – In the absence of such representation, by the consent of the majority of employees.
• – In companies with fewer than 50 employees, through an individual written agreement with the concerned employees.

Trade unions wield influence in specific sectors, with industry-level Collective Bargaining Agreements (CBAs) being commonplace. In collective labor disputes, trade-union arbitrators often serve as mediators.

Approximately one-quarter of Switzerland’s workforce is affiliated with a trade union or a similar association. Most unions and professional bodies are affiliated with either the Swiss Federation of Trade Unions (SGB/USS) or Travail.Suisse. Union fees vary significantly based on members’ occupations and incomes.

Furthermore, numerous national, cantonal, and municipal organizations safeguard workers’ rights, including cantonal labor inspectorates. In companies with 50 or more employees, workers have the right to elect one or more representatives to advocate for workers’ participation rights.

• Fixed-term employment contracts have no mandated minimum or maximum duration.
• Upon reaching the agreed-upon end date, a fixed-term contract concludes without the need for notice.
• Should a fixed-term employment arrangement persist beyond the initially specified duration without explicit renewal, it is regarded as transitioning into an open-ended employment relationship.

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As per employment regulations, employers are obligated to furnish employees with a written salary payslip for each salary disbursement, encompassing comprehensive details on gross and net earnings, deductions, and additional payments. These payslips can be transmitted to employees either via mail or email, ensuring compliance with data security protocols.

Moreover, all employers are mandated to provide their employees with a salary statement, encompassing all remuneration dispensed. Typically, salary statements are distributed at the onset of the year and are primarily intended for employees’ reference. However, certain cantons impose a salary reporting mandate, necessitating employers to directly submit salary statements to the cantonal tax administration.

Employees are granted four weeks of paid annual leave per year, with a requirement of at least two weeks to be taken consecutively. However, employees under the age of 20 are entitled to five weeks of paid vacation. For employees who have not completed one year of service, their holiday entitlement is calculated proportionally.

The employer has the authority to schedule holidays, considering employees’ preferred dates to the extent they align with the organization’s operational requirements.

Carryover Regulations

Employers are prohibited from compensating employees in lieu of granting them annual leave. Typically, unused leave cannot be carried over to the following year.

All individuals residing or employed in Switzerland are entitled to sickness benefits.

Employers must be promptly notified of any work incapacity due to illness. If the incapacity extends beyond 2 days, employees are required to furnish the original medical certificate issued by a Swiss physician to the employer within five calendar days without prompting. The insurance benefit serves as a substitute for the employer’s obligation to maintain salary payments, as per Article 324a of the Swiss Code of Obligations (OR). This insurance coverage commences upon employment commencement and ceases on the final working day under all circumstances.

Swiss legislation mandates employers to continue paying employees their full wages during illness for a specific duration, with the timeframe increasing in line with tenure. The minimum duration is set at three weeks in the initial year of service, thereafter lengthening accordingly. The specific duration is contingent upon the tenure of the employment and individual circumstances.

Case law within each canton has delineated the interpretation of “appropriately longer periods.” The “Bernese scale,” established by the superior court of Canton Berne, provides guidance:

• First year of employment: Three weeks of full salary
• Second year: One month of full salary
  Three to four years: Two months of full salary
• Five to nine years: Three months of full salary
• Ten to 14 years: Four months of full salary
• 15 to 19 years: Five months of full salary
• 20 to 25 years: Six months of full salary
  Alternative agreements are permissible but must be explicitly outlined and documented for each employee, either within their employment contract, the standard employment agreement, or a Collective Labor Agreement (CLA). Consequently, many employers opt for insurance coverage for daily allowances to cover 80% of employees’ wages during extended illness absences. Wage continuation is applicable for the duration of the employee’s incapacity to work, up to a maximum of 720 days within a 900-day consecutive period.

Leave is provided for the following circumstances, although specific durations are not legally mandated. Employees should consult applicable employment regulations to ascertain the company’s policies. Typically, leave granted ranges between one and three days, and there is no requirement to compensate for lost work hours.

Reasons outlined in the law:

1. Accident
2. Legal obligations (e.g., military service)
3. Public office

Additional reasons may include:

1. Marriage
2. Death of a close relative
3. Relocation, etc.

Volunteer Work Leave

• Employees below the age of 30 have the right to take one week of unpaid leave annually to engage in volunteer work for social or cultural organizations. During this leave, employees do not receive statutory salary compensation. However, more advantageous provisions may be stipulated through individual agreements or Collective Labor Agreements (CLA).

Additionally, employers are required to grant leave to employees for the fulfillment of their mandatory military obligations.

Maternity Leave

• Employees are eligible for a minimum of 14 weeks of maternity leave following childbirth, which must be taken as a continuous period without breaks.
• Under Switzerland’s mandatory loss of earnings insurance program, female employees who have worked for at least five out of the nine months preceding childbirth are entitled to receive 80% of their regular pay as a daily allowance, capped at a maximum of 220 Swiss francs per day.
• If the employee does not meet the requirements for this program, she has the right to take leave under the sick leave provisions outlined in the Code of Obligations.
• While there are no specific regulations for maternity leave before childbirth, pregnant employees who are unable to work during this period can take sick leave.
• Employers are prohibited from reducing the holiday entitlement of female employees unable to work due to pregnancy for up to two months or after receiving maternity benefits.
• Furthermore, women are not permitted to return to work for the first eight weeks following the birth of a child.

Throughout an employee’s pregnancy, an employer:

• The employer is obligated to ensure that the employee’s job does not jeopardize her health and must offer alternative tasks if necessary.
• Additionally, the employer must permit unpaid leave upon the employee’s request, refrain from mandating overtime work, and restrict work hours between 8 p.m. and 6 a.m.
• starting from the eighth week prior to the expected birth date.

Employers are prohibited from terminating pregnant workers or new mothers for the initial 16 weeks following childbirth.

Breastfeeding Break:

During the child’s first year, time spent breastfeeding is considered working time and compensated for a duration ranging from 30 to 90 minutes, depending on the employee’s daily work hours. This break can be taken at once or divided as per the child’s needs.

Paternity Leave:

Fathers are entitled to two weeks of leave within the first six months after the child’s birth, comprising 10 working days. This period can be taken consecutively or as individual days off. During paternity leave, fathers do not receive their regular salary but can claim a daily allowance equivalent to 80% of their daily wage, capped at 196 Swiss francs, from the government’s social insurance.

Adoption Leave:

Parents who adopt a child under four years old are eligible for two weeks of paid leave.

Childcare Leave:

Employers must grant up to three days of leave for employees to care for a sick child, upon presentation of a medical certificate.

Switzerland observes several statutory public holidays, including New Year’s Day (January 1), Ascension Day, Swiss National Day (August 1), and Christmas Day (December 25). Additional public holidays like Easter, Whitsun, and Corpus Christi vary by canton, with each canton deciding whether to observe these days. Typically, cantons grant around nine public holidays.

If a public holiday falls on a Saturday or Sunday, it remains on that day and is not moved to a weekday.

Employees working on public holidays are entitled to a 50% premium on top of their regular pay rate. Employers must obtain consent from employees before assigning them to work on a holiday.

Some types of leave, such as study leave, bereavement leave, and leave for voting, may vary depending on the industry or state of employment. These leaves can be paid, unpaid, or half-paid, and their availability is typically determined by the organization’s policies and practices.