Employment contracts Switzerland

Business owners getting ready to hire fresh team members in Switzerland or freelancers looking to establish their employment status can find significant advantages by using Native Teams services. We furnish a thorough manual to the most efficient strategies and legal obligations for initiating and upholding a legitimate employment agreement in Switzerland!

What should an employment contract in Switzerland include?

Employment contracts in Switzerland typically entail the following information:

• The names and contact details of both the employer and employee.
• The duties and assignments entrusted to the employee.
• Designated workdays and hours for the employee’s involvement.
• The agreed-upon salary or wage, as well as extra benefits or bonuses.
• Conditions for contract termination, including the expected notice period from both sides.
• Commitment to confidentiality and non-disclosure.

Before signing, both the employer and the employee should carefully examine the provisions outlined in the employment agreement.

What types of employment contracts exist in Switzerland?

Employment contracts in Switzerland can be split into several categories:

1. Employee contract

The employee contracts are further divided into two types of contracts:

• Open-ended (unlimited) contract: This is the standard type of employment contract where there is no fixed end date. The employment relationship continues until either the employer or the employee gives notice to terminate the contract.

• Fixed-term contract: This type of contract has a specific start and end date. It’s typically used for temporary work or projects with a defined duration. Once the contract reaches its end date, it automatically terminates.

2. Part-time employment contracts 

These contracts in Switzerland are widely used to accommodate individuals who work fewer hours than what is considered full-time employment. Part-time arrangements can provide greater flexibility for both employees and employers and are commonly found in various industries and sectors.

3. Temporary (Agency) work contract

Temporary work agencies employ individuals who are then assigned to work for different client companies on a short-term basis. The agency remains the legal employer, and the employee is “leased” to other companies.

How to hire employees in Switzerland?

In order to employ personnel in Switzerland, it’s crucial to establish a formally acknowledged corporate entity. This involves fulfilling the business registration process as required by Switzerland authorities and obtaining an assigned business registration code.

Alternatively, another method involves engaging a specialised international employer service provider that specialises in recruitment solutions. Native Teams offers extensive Employer of Record services, adeptly managing a range of responsibilities such as payroll administration, human resources functions, and taxation affairs. We are ready to aid you in surmounting the challenges of acquiring precise and current employment-related insights across diverse nations.