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The Swiss employment contract

The Swiss employment contract

Understand everything about the clauses, negotiation and your rights before signing your contract in Switzerland

The Swiss employment contract is governed by articles 319 to 362 of the Code of Obligations (CO). Although Swiss law allows for an oral contract, almost all employers provide a written contract. As an expat, it is essential to understand each clause before signing, as some practices differ significantly from those you may be familiar with in your home country.

Types of contracts

Permanent contract (CDI)

The CDI is the standard in Switzerland. It has no end date and offers the greatest stability. It can be terminated by either party while respecting the legal or contractual notice periods.

Fixed-term contract (CDD)

The fixed-term contract ends automatically on the agreed date. It does not require termination and does not provide for a notice period, unless otherwise stipulated. Please note: a fixed-term contract cannot be terminated before its end except for good reason.

Temporary work (temp)

You are employed by a placement agency (Adecco, Randstad, etc.) and made available to a client company. The duration is variable and you benefit from the same minimum conditions as the company's permanent employees.

Internship

The internship is a full-fledged employment contract with a training objective. It is paid (generally CHF 2,000 to CHF 3,500 per month) and typically lasts 6 to 12 months.

Essential clauses of the contract

Your contract must mention at least the following elements. Check each point carefully before signing.

  • Identity of the parties (employer and employee)
  • Start date and duration (CDI or CDD)
  • Function and job description
  • Workplace (important for cross-border workers and teleworking)
  • Activity rate (full time = 100%, part time in %)
  • Annual or monthly gross salary, paid in 12 or 13 monthly installments
  • Length of trial period
  • Weekly working hours
  • Number of vacation days
  • Pension fund (LPP) and loss of earnings sickness insurance
  • Collective labor agreement (CCT) applicable, if applicable

The 13th month and bonuses

The 13th month is not obligatory in Switzerland, unless a CCT provides for it. However, it is extremely common — about 80% of employers pay it. Check if the announced salary is expressed over 12 or 13 months.

Bonuses and bonuses are in principle discretionary (the employer can eliminate them from one year to the next), unless they are contractually guaranteed or paid in a regular and significant manner, in which case they can become an acquired right.

Trial period

The legal trial period is one month. It can be extended to a maximum of 3 months by written agreement, which is the norm in most contracts. During this period, the cancellation period is 7 days. The trial period is suspended in the event of illness, accident or pregnancy.

Non-competition clause

A non-competition clause must be written, limited geographically and in time (maximum 3 years), and can only cover the specific activity of the employer. It is only valid if the employee has access to customers or business secrets. Important: in Switzerland, unlike France, there is no legal obligation for financial compensation for the non-competition clause.

Negotiation points for expats

As an expat, several elements of your contract can and should be negotiated beyond the base salary.

ItemStandardNegotiable
Annual gross salaryDepending on position and experienceBenchmark on lohnrechner.ch
Vacation days20-25 daysUp to 30 days for executives
Telework0-2 days/weekUp to 3-4 days, include in contract
Relocation packageRarely offered spontaneouslyMoving, temporary housing, scouting trip
Language trainingNon-standardEmployer-funded language courses
13th monthYes in 80% of casesCheck if included in the advertised salary
BonusesVaries depending on the sectorClarify the criteria and target amount

Frequently Asked Questions

Is an oral employment contract valid in Switzerland?
Yes, an oral contract is legally valid in Switzerland. However, it is very strongly recommended to require a written contract. In the absence of a document, the minimum legal provisions of the CO apply. In the event of a dispute, the burden of proof will be more difficult without a written contract.
Is the 13th month obligatory?
No, the 13th month is not a legal obligation in Switzerland. However, it is provided for by numerous collective labor agreements (CCT) and practiced by the vast majority of employers. Always check whether the salary you are being offered is for 12 or 13 months — this represents a difference of 8.3% of your annual salary.
Can the employer fire me during the trial period?
Yes, during the trial period, either party can terminate the contract with 7 days' notice, without having to justify their decision. However, even during the trial, unfair dismissal (discriminatory or retaliatory) remains prohibited. Termination is void if it occurs during incapacity for work due to illness.

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