Understanding Your Employment Contract in Switzerland

What Swiss law requires, what it leaves open, and what to check before you sign.

Short Answer

A Swiss employment contract can be oral or written, but a written document is standard practice and strongly advisable. Swiss law (Code of Obligations, Articles 319 to 362) sets minimum protections but leaves many points, such as bonuses, vacation above the legal minimum and the 13th month, to the contract itself. Read every clause carefully, since practices in Switzerland often differ from those in your home country.

The Swiss employment contract is governed by the Code of Obligations (CO), Articles 319 to 362. Swiss law does not require a written contract for it to be valid, but almost every employer provides one in practice, and a written document makes your rights far easier to prove if a dispute arises later.

As an expat, you are moving into a legal framework that can look familiar on the surface, since it uses terms like trial period, notice and non-competition clause, but applies different rules and defaults from what you may know elsewhere. Before you sign, it is worth understanding what the law imposes, what is left to negotiation, and where your contract terms may also affect your residence permit.

Types of employment contracts in Switzerland

Open-ended contract

The open-ended contract, sometimes referred to by the French term CDI, is the standard form of employment in Switzerland. It has no end date and can be terminated by either party, subject to the legal or contractual notice period.

Fixed-term contract

A fixed-term contract ends automatically on the agreed date, without notice, unless the contract states otherwise. It cannot generally be terminated early except for good cause, so review the end date and any renewal clause carefully before signing.

Temporary work through a placement agency

Under temporary work arrangements, you are employed by a staffing agency and assigned to a client company. The assignment length varies, and Swiss law entitles you to comparable minimum conditions to permanent staff at the company where you work.

Internships and trainee contracts

An internship in Switzerland is a genuine employment contract with a training component, and the same core protections of the Code of Obligations apply to it. Pay and duration vary widely by canton, sector and the intern's qualifications, so treat any figure you see elsewhere as indicative only and confirm the terms directly with the employer.

Essential clauses your contract should include

Swiss law does not impose a single mandatory template, but a well-drafted contract covers the following points. Check each one before you sign, and ask for clarification in writing on anything left vague.

Identity of the employer and the employee
Start date, and end date if the contract is fixed-term
Job title and a description of your duties
Place of work, which matters if you are a cross-border commuter or expect to work remotely
Activity rate (100% for full time, or a percentage for part time)
Gross salary, and whether it is paid over 12 or 13 instalments
Length of the trial period
Weekly working hours
Number of paid vacation days
Pension fund (LPP/BVG) affiliation and salary continuation insurance in case of illness
Any collective labour agreement (CCT/GAV) that applies to your role

Ask for the collective labour agreement, if one applies, before you sign. It can set minimum salaries, vacation days and notice periods above what the Code of Obligations requires on its own.

Trial period and notice

The default trial period under the Code of Obligations is one month, and contracts commonly extend it in writing up to a maximum of three months. During the trial period, either party may end the contract with seven days' notice, without giving a reason.

The trial period is suspended, not shortened, by illness, accident or pregnancy that prevents you from working, which extends the effective trial accordingly. After the trial period, statutory notice periods lengthen with seniority, and your contract may set longer periods than the legal minimum.

The 13th month and bonuses

A 13th monthly salary is not required by the Code of Obligations, but it is common practice in Switzerland and is often made mandatory by a collective labour agreement in a given sector. When you compare a salary offer to your current pay, always check whether the figure quoted is spread over 12 or 13 months, since this changes your effective monthly income noticeably.

Bonuses are, in principle, discretionary: an employer can reduce or withdraw them from one year to the next unless the contract guarantees them. A bonus paid regularly, in a similar amount, over several consecutive years can nonetheless become an acquired right that the employer can no longer withdraw unilaterally, depending on the circumstances.

Non-competition clauses

A non-competition clause restricting your activity after you leave the company must be in writing, and is only valid if you had access to clients or manufacturing and business secrets in a way that could cause the employer real harm. It must also be reasonably limited in place, time and the type of activity it restricts, and, absent special circumstances, the Code of Obligations caps its duration at three years.

Unlike in some other countries, Swiss law does not require the employer to pay you financial compensation in exchange for a non-competition clause. If your contract includes one, read its scope closely, since an overly broad clause can limit your next job search in Switzerland more than you expect.

A non-competition clause that is too broad in scope is not automatically void: a Swiss court can reduce it to a reasonable scope rather than cancel it outright. Do not assume an unreasonable clause simply will not apply.

How your contract connects to your residence and work permit

If you are not a Swiss or EU/EFTA national, your employer generally needs authorisation before you can start work, and your permit is usually tied to the employer and the role described in your contract. A change of employer, or a significant change in your duties, can require a new permit application rather than a simple contract amendment.

For EU/EFTA nationals, the process is generally more straightforward, but you still need to register your residence and, in most cases, hold a valid contract before or shortly after your arrival. In both cases, the contract terms your employer submits with the permit request, such as salary and activity rate, need to match what you actually sign.

Aligning a job offer with the right permit category, and coordinating the timing between your contract and your application, is where many international hires run into delays. Our consultants handle this coordination alongside your employer, across both EU/EFTA and non-EU permit routes.

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Negotiation points for expats

Beyond the base salary, several elements of a Swiss employment contract are commonly negotiated, particularly for an international hire relocating with a family.

Item	What is typical	What can be negotiated
Gross salary	Set by role, sector and canton	Benchmark against comparable roles before you negotiate
Vacation days	Legal minimum is four weeks a year, five for younger employees	Additional days, particularly for senior or executive roles
Remote work	Varies widely by employer and role	A fixed number of remote days written into the contract
Relocation support	Not offered automatically in most cases	Moving costs, temporary housing, a scouting trip before the move
Language training	Not standard	Employer-funded local language courses
13th month	Common in practice, not legally required	Confirm whether the advertised salary already includes it
Bonus structure	Varies by sector and seniority	Ask for the criteria and target amount in writing

Also Worth Reading

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Frequently Asked Questions

Is an oral employment contract valid in Switzerland?

Yes, an oral employment contract is legally valid in Switzerland, and the minimum protections of the Code of Obligations apply even without a written document. In practice, almost every employer provides a written contract, and having one in writing makes it far easier to prove your agreed terms if a disagreement arises later.

Is the 13th month salary mandatory in Switzerland?

No, a 13th month is not required by the Code of Obligations on its own, though it is common practice and is often made mandatory by a collective labour agreement in a given sector. Always check whether a salary figure you are offered is expressed over 12 or 13 months before comparing it to another offer.

Can my employer dismiss me during the trial period?

Yes, during the trial period either party can end the contract with seven days' notice, without needing to give a reason. Dismissal remains prohibited if it is discriminatory or retaliatory, and it is void if it occurs while you are unable to work due to illness or accident, which also suspends the trial period itself.

Does changing employer affect my Swiss work permit?

For most non-EU/EFTA permit holders, yes: your permit is generally linked to a specific employer and role, so a change usually requires a new authorisation rather than a simple update to your existing contract. EU/EFTA nationals generally have more flexibility, but should still confirm their situation before accepting a new role.

Do I need financial compensation to accept a non-competition clause?

No. Unlike some other countries, Swiss law does not require your employer to pay you compensation in exchange for a non-competition clause. The clause is still only valid if it is in writing, reasonably limited in place, time and scope, and justified by your access to clients or business secrets.

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