Employment Law in Switzerland

How Swiss employment contracts work

An employment contract in Switzerland can be concluded orally and is still binding, but a written contract is strongly recommended so that salary, working time, notice periods and any special clauses are clear from the start. The law distinguishes mainly between an open-ended contract, which is the norm, and a fixed-term contract used for a defined project or period.

A fixed-term contract ends automatically on the agreed date, with no notice required. If both parties continue the relationship beyond that date without renewing it in writing, it is treated in practice as converted into an open-ended contract. Chaining several fixed-term contracts back to back is not automatically unlawful, but courts can reclassify the relationship as open-ended if the sole purpose was to avoid notice periods or dismissal protection.

The trial period at the start of employment law in Switzerland

The trial period is one month by default and can be shortened, waived, or extended up to a maximum of three months, provided this is agreed in writing before or at the start of employment. During the trial period, either party can end the relationship with seven days' notice and without giving a reason.

A trial period cannot be extended simply because the employer wants more time to assess performance. It is, however, automatically prolonged by any period during which the employee is unable to work — illness, accident, or a legal obligation such as compulsory military service — so that both sides get the full assessment period they agreed to.

Working hours, overtime and rest

The Employment Act sets a statutory maximum weekly working time, which is higher for industrial, technical, office and retail staff than for other categories of worker; in practice, most Swiss employment contracts specify a lower contractual working week, commonly in the low forties of hours. Night, Sunday and shift work are restricted and generally require a cantonal or federal authorisation, with limited exceptions for sectors such as healthcare, hospitality and continuous industrial processes.

Overtime worked beyond the contractual (not the statutory maximum) hours must, by default, be paid with a wage supplement or compensated with time off of at least equal length, unless your contract validly states otherwise in writing. A blanket clause stating that overtime is 'included in the salary' is only valid if the expected volume is limited and clearly foreseeable — an open-ended waiver of all overtime pay is not enforceable.

Holiday entitlement and family-related leave

The legal minimum is four weeks of paid holiday per year, rising to five weeks for employees under the age of twenty; many Swiss employers grant five weeks as standard, and more for senior staff. Public holidays are set at cantonal level, so the number of paid non-working days varies depending on where in Switzerland you work.

• •Maternity leave: 14 weeks, paid through the federal loss-of-earnings compensation scheme (APG/EO) as a percentage of prior income, subject to a legal maximum daily amount
• •Paternity leave: two weeks, to be taken as single days or as a block within six months of the birth, funded on the same basis
• •Leave to care for a sick family member: a limited number of days per event, capped per calendar year
• •Marriage and bereavement leave: typically one to a few days, based on established practice rather than a fixed legal entitlement

Termination and notice periods

Once the trial period has ended, either party can terminate an open-ended contract by respecting a statutory notice period that lengthens with seniority, unless a longer period has been agreed in the contract. Swiss law does not require the employer to state a reason for an ordinary dismissal — this is one of the more flexible aspects of the system compared with many neighbouring countries.

Protection against dismissal at the wrong moment

Swiss law blocks dismissal during certain protected periods, even though it does not generally require a reason for termination. An employer cannot validly give notice while you are performing compulsory military or civil service, during a period of incapacity due to illness or accident (the protected duration increases with seniority), during pregnancy and for a set number of weeks after childbirth, or while you are on an officially recognised humanitarian aid mission abroad. Notice given during one of these periods is void and must be repeated afterwards if the employer still wishes to terminate the contract.

Unfair dismissal and how to respond

A dismissal is considered abusive if it is based on a discriminatory ground such as sex, religion or sexual orientation, if it is a reprisal for the employee asserting a good-faith claim, or if it is used to prevent a right from arising under the contract. The dismissal itself remains valid — Swiss courts cannot order reinstatement — but the employee can claim compensation.

If you believe your dismissal is abusive, you must object in writing before the end of your notice period; if no agreement is reached, you then have a limited window after the end of the contract to bring a claim before the labour tribunal of your canton. Acting quickly and keeping written records of the circumstances noticeably strengthens your position.

Social insurance contributions deducted from your salary

Several contributions are deducted directly from your gross salary and matched, in whole or in part, by your employer: old-age, survivors' and disability insurance together with the loss-of-earnings scheme (1st pillar), unemployment insurance up to an annual salary threshold, and occupational pension contributions (2nd pillar, LPP) once your salary exceeds the legal entry threshold. Non-occupational accident insurance is usually deducted from the employee's salary if you work at least eight hours a week for the same employer, while professional accident insurance and family allowances are funded by the employer.

Exact percentages and thresholds are set at federal level and adjusted periodically, so your payslip is the most reliable place to check the current deductions applied to your contract; for the legal rules behind them, consult the official sources listed below.

Protection of your personality, harassment and mobbing

Employers in Switzerland have a legal duty to protect the personality and health of their employees. Mobbing and sexual harassment are prohibited, and an employer who fails to act on a credible complaint can be held liable. An employee subjected to sexual harassment can claim compensation within statutory limits, and in serious cases may be entitled to terminate the contract with immediate effect for just cause.