Hiring guide in Switzerland

What should I know about hiring in Switzerland?

Legal framework

Types of employment contracts

In Switzerland, employment contracts can be permanent, fixed-term, and temporary contracts.

Permanent contracts, the most common type, offer indefinite employment and include protections such as notice periods and paid leave. Fixed-term contracts are for a specified duration and automatically end unless otherwise stated. They are typically used for project-based or seasonal work and are subject to the same conditions, pay, and insurance requirements as permanent contracts. 

Temporary contracts, often arranged through staffing agencies, provide flexibility but must adhere to the Swiss Labour Leasing Act and applicable collective labour agreements. Swiss law also recognises specialised contracts, including apprenticeships and teleworking agreements, which must meet labour standards to ensure legal validity.

Content of an employment contract

The employment contract should outline details such as salary, overtime, bonuses, and contributions to social security, accident insurance, and pensions. The contract should also specify working hours, rules regarding overtime, and holiday entitlements, with a minimum of four weeks of paid leave per year. Plus, clauses addressing confidentiality and intellectual property may be included, provided they comply with Swiss legal requirements.

Download a free employment contract in Switzerland through Native Teams.

Oral, written or electronic employment contracts

Swiss labour law allows employment contracts to be concluded orally, in writing, or electronically, as long as both parties agree upon the essential terms. 

Oral contracts are legally binding if they meet the criteria outlined in the CO, including mutual agreement on the nature of work, salary, and the basic obligations of both parties. However, oral agreements can create difficulties in proving the agreed terms in case of disputes, making written or electronic contracts more preferable, particularly for long-term or complex employment relationships.

Written contracts are the most common in Switzerland, offering greater legal clarity and security. While Swiss law doesn’t generally mandate a written contract for all employment relationships, certain terms—such as non-compete clauses or probationary periods—must be documented in writing to be enforceable. 

Electronic contracts, which are recognised under the Swiss Federal Act on Electronic Signatures, are becoming more popular, especially for remote or international employment arrangements. To be legally valid, electronic contracts must include secure digital signatures that comply with Swiss eIDAS standards, ensuring the authenticity and integrity of the agreement.

Working hours

For office workers, technical staff, and retail employees, the Act limits working hours are set to a maximum of 45 hours per week. For other categories, such as manual labourers, the maximum is 50 hours per week.

Employers and employees may agree to flexible working hours as long as the total does not exceed the legal maximum. The contract should clearly outline the agreed-upon weekly schedule and account for any overtime. Overtime that exceeds the statutory working hours is subject to separate regulation. It requires either additional compensation of at least 25% or equivalent time off.

Swiss labour law also mandates daily and weekly rest periods to protect employee health. Employees are entitled to at least 11 consecutive hours of daily rest and 24 uninterrupted hours of rest each week. These rest periods are non-negotiable and must be included in the contract. Employers who fail to comply with these provisions may face administrative penalties and be held liable for any health issues employees may experience due to overwork.

Night work

Night work is defined as any work performed between 11:00 p.m. and 6:00 a.m. Employers wishing to schedule night work must first obtain prior authorisation from the cantonal labour authorities. The employment contract must clearly outline the scope, duration, and conditions of the night work. Without this authorisation, night work arrangements may be considered illegal, exposing employers to potential penalties.

Employment contracts for night workers must include essential details such as working hours, compensation, rest periods, and health and safety provisions. Swiss law requires that employees working more than 25 nights per year undergo a health assessment at the employer’s expense. Night work compensation includes a mandatory wage supplement of at least 25% or equivalent compensatory rest.

Moreover, contracts must ensure compliance with daily and weekly rest requirements, including a minimum of 11 hours of consecutive rest after a night shift. In some cases, night workers in physically demanding roles are entitled to reduced working hours to reduce health risks.

Breaks and types of leaves

Employees working more than 5.5 hours per day are entitled to a 15-minute break, which increases to 30 minutes for shifts exceeding 7 hours and 60 minutes for shifts over 9 hours. Breaks are considered part of working hours only if the employee is required to stay at the workplace.

Sick leave and maternity leave are also key components of Swiss labour protections. Employees who are unable to work due to illness or injury are entitled to continued salary payment for a specified period, which is determined by the length of service.

Annual leave

By law, employees are entitled to at least 4 weeks of paid leave per year, with an increase to 5 weeks for employees under 20 years of age. These statutory entitlements are non-negotiable and apply to both full-time and part-time employees, with leave pro-rated for those working fewer hours than the standard full-time schedule.

The minimum entitlement is calculated based on a 52-week work year, ensuring fairness across various employment arrangements.

Employment contracts must specify the terms of annual leave, including any additional leave provided by the employer as part of their benefits package. Employers often offer more than the statutory minimum, especially in industries where extended leave is seen as a competitive benefit to attract talent. The contract should also outline the process for requesting and approving leave, ensuring that both parties are clear about their rights and responsibilities.

The law prohibits cash compensation for unused leave, except when the employment relationship ends, underscoring the importance of employees taking their entitled rest periods. Employers are obligated to ensure that employees use their annual leave within the prescribed timeframe, typically by the end of the following year, to avoid potential legal disputes.

Public holidays

In Switzerland, public holidays are determined by cantons, with August 1 (Swiss National Day) being the only nationwide paid holiday. Other holidays, such as Christmas and New Year’s Day, vary depending on the canton, and employers must adhere to the regulations of the employee’s work location.

Employment contracts should clearly outline how public holidays affect working hours and compensation. Employees who aren’t scheduled to work on a holiday generally aren’t entitled to additional pay unless specified in the contract or a collective labour agreement (CLA). For employees working on public holidays, compensatory rest or additional pay must be provided as agreed upon.

Contracts for part-time or flexible workers should also specify how public holiday entitlements are prorated, and employers must ensure that public holidays occurring during annual leave don’t reduce the employee’s leave balance.

Salary

From January 1, 2024, the gross salary per hour is CHF 24.32, with an increase to CHF 24.48 from January 1, 2025. CLAs in specific sectors such as construction, hospitality, and healthcare may also establish mandatory minimum salary levels for employers and employees within those industries.

To calculate the salary and taxes in Switzerland, click here.

Sick leave

Employment contracts must outline the conditions for sick leave, including required documentation (e.g., medical certificates for absences longer than 3 days) and terms for salary continuation. Employers are obligated to meet the statutory minimums or adhere to relevant collective labour agreements (CLAs). 

Work-related injuries are covered separately by accident insurance, and contracts should clearly distinguish between illness and accident-related absences. For long-term illnesses, coordination with disability insurance may also be addressed.

Parental leave

Maternity leave grants mothers 14 weeks of paid leave at 80% of their average salary, up to a certain limit. This leave begins no earlier than the birth of the child, and mothers must refrain from working for at least the first 8 weeks after delivery to comply with health and safety regulations. Employment contracts should specify the terms of maternity leave, including payment procedures, eligibility criteria, and any potential extensions offered by the employer.

Paternity leave allows fathers 10 days of paid leave, which can be taken either consecutively or in increments within the first 6 months following the child’s birth. Similar to maternity leave, paternity leave is paid at 80% of the father’s average salary, up to a capped daily amount.

Methods of employment termination

In Switzerland, employment can end through mutual agreement, resignation by the employee, dismissal by the employer, or automatic termination due to events like the expiration of a fixed-term contract. 

For indefinite contracts, either the employer or employee may terminate the agreement by providing notice according to the statutory or agreed-upon period. The standard notice period is 2 months during the first year of employment, 2 months between the second and ninth years, and 3 months thereafter. Fixed-term contracts automatically end at the conclusion of the agreed period without the need for notice unless extended by mutual consent.

During a probationary period, which can’t exceed 3 months, the notice period is reduced to 7 days. Swiss labour law also prohibits dismissals during protected periods, such as maternity leave, military service, or illness, to protect employees during these vulnerable times.

Ordinary dismissal by employer

Ordinary dismissal refers to the termination of employment that follows the statutory or contractual notice periods. Swiss law sets notice periods at 1 month during the first year, 2 months from the second to the ninth year, and 3 months thereafter. 

Employers are required to act in good faith, ensuring no discrimination or unfair treatment. While a reason for dismissal isn’t mandatory unless requested, terminations are prohibited during protected periods such as maternity leave, military service, or illness.

Notice period and challenging the dismissal

During the first year of employment, the notice period is 1 month. This extends to 2 months between the second and ninth years and 3 months thereafter.

Notice periods are typically calculated to end on the last day of the calendar month unless otherwise stated in the employment contract. During this time, the employee is entitled to their full salary and benefits and is expected to continue performing their duties unless mutually agreed otherwise.

Employees can challenge dismissals they believe to be unfair, discriminatory, or in violation of legal protections. Swiss labour law emphasises the importance of good faith in termination procedures, and dismissals during protected periods, such as maternity leave or illness, are considered invalid.

Rights and obligations of unemployed persons

In Switzerland, unemployment rights are governed by the Federal Unemployment Insurance Act (ALV), which provides financial assistance and support for re-employment. To qualify, individuals must have contributed to the unemployment insurance system for at least 12 months within the past 2 years. Eligible individuals can receive benefits equal to 70% of their insured salary or 80% for those with lower incomes or dependent children. These benefits are subject to a cap and deductions for social security.

To receive benefits, individuals must register with a regional job centre (RAV), actively seek employment, and participate in RAV meetings and programs. Failure to comply with these requirements may result in suspension of benefits.

Severance pay

In Switzerland, severance pay isn’t generally required, except for employees over 50 years of age with at least 20 years of service, where it is capped at 2 months’ salary according to the Swiss Code of Obligations (CO). 

Severance is commonly used to ensure amicable separations, particularly in cases of redundancy or mutual agreements, with packages often exceeding the legal minimum by offering extended benefits or outplacement services. Employers must define clear severance terms in contracts, as disputes can be settled through cantonal labour courts. Employers must ensure adherence to legal requirements and agreements to avoid potential liabilities.

Probationary period

In Switzerland, the probationary period serves as a trial phase for both employer and employee to assess the suitability of the employment relationship. The standard probationary period is 1 month from the start of employment. However, it can be extended up to 3 months if agreed upon in writing before the employment begins.

During this period, either party can terminate the employment relationship with a shorter notice period of 7 days, offering flexibility while maintaining a level of security.

Despite its trial nature, the probationary period is subject to the same labour protections as regular employment. Employers must provide the agreed compensation and benefits, while employees retain rights such as social security contributions and protection against discrimination.

Intellectual property rights

Intellectual property (IP) rights during employment are regulated by the Swiss Code of Obligations (CO) and specialised IP legislation, such as the Federal Patent and Copyright Acts. As a general rule, employers own IP developed by employees during their job duties. However, any creations outside the scope of employment typically remain the employee’s property unless otherwise specified in the employment contract.

Employment contracts should explicitly outline the ownership and assignment of IP rights, clearly distinguishing between work-related creations and personal works. Swiss copyright law also provides employees with moral rights over their creations, even when economic rights are transferred to the employer.

Employee data privacy

Employment contracts should detail the types of data collected, the purposes of processing, and the security measures in place. Handling sensitive information, such as health data, requires explicit employee consent unless processing is legally mandated. Employers are obligated to implement robust protections, including encryption and access controls, to protect employee data.

Employees have the right to access, correct, or request the deletion of their personal data. Contracts should clearly define these rights and the procedures for exercising them, promoting transparency and compliance. Failure to adhere can result in penalties, legal actions, and reputational damage.

Prohibition of competition

The non-compete clauses restrict former employees from engaging in activities that directly compete with their employer’s business after the end of their employment.

To be valid, a non-compete clause must be included in a written employment contract and comply with legal requirements regarding its scope, duration, and geographic coverage. In addition, the employee must have had access to sensitive business information during their employment that could significantly harm the employer if misused or disclosed.

Non-compete clauses are enforceable only to the extent necessary to protect the employer’s legitimate business interests. They must not impose unreasonable restrictions on the employee’s professional freedom or career opportunities. Swiss law generally limits such clauses to a maximum duration of 1 year, though extensions up to 3 years may be allowed in exceptional cases, such as when the employee receives substantial compensation for agreeing to the clause.

Remote working policy

In Switzerland, remote work, or telework, is increasingly common. While no specific legislation exclusively addresses remote work, its terms must be defined through employment contracts or supplementary agreements. These agreements should cover key aspects such as working hours, equipment provision, data protection, and health and safety requirements.

Contracts should specify whether remote work is optional, mandatory, or flexible, as well as the conditions under which employees may work remotely. Employers remain responsible for ensuring compliance with legal limits on working hours, breaks, and rest periods, even in a remote setting. Agreements should outline expected availability, time-tracking mechanisms, and reporting procedures. Employers are also responsible for providing the necessary tools and resources, such as computers or internet access, unless otherwise agreed, and should address reimbursement of expenses incurred during remote work.

Responsibilities within a remote work arrangement

In Switzerland, responsibilities in a remote work arrangement are guided by labour laws and contractual agreements, ensuring a balanced approach that upholds compliance and fosters productivity for both employers and employees.

Health and safety at home

Employers are obligated to assess and mitigate physical risks, such as ergonomic injuries, and psychological risks, such as stress, regardless of the employee’s location. This responsibility extends to providing or covering the cost of ergonomic equipment if necessary to ensure safety. Employers must also monitor compliance with safety guidelines while respecting employee privacy under the Federal Act on Data Protection, with any workplace access for risk assessments requiring the employee’s consent.

Employees are required to adhere to safety guidelines and use the equipment provided to them. Employers can limit their liability if they have offered adequate training and implemented compliant safety measures, but the employee chooses not to follow them.

What are the advantages of hiring employees from Switzerland vs other countries?

With 4 official languages (German, French, Italian, and Romansh), Switzerland offers a highly multilingual workforce. This is a significant advantage for companies operating in multiple markets or requiring employees to engage in international business communication.

In addition, the Swiss labour market is flexible, with laws that allow employers and employees to negotiate terms more easily than in some other European countries. There is also a high level of work-life balance, which contributes to employee satisfaction and retention.

Finally, Switzerland offers a strong social security system with comprehensive healthcare, pensions, and unemployment benefits. This can provide peace of mind to employees and is an attractive benefit for potential hires.

Why use Native Teams for hiring in Switzerland?

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• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.

Local support: We can assist you in understanding and complying with the relevant local laws.