As in many countries, labour law in Switzerland includes strict regulations to protect employees from various forms of harm. For example, employees in Switzerland have the right not to be discriminated against at work on the basis of protected characteristics like their sex, age, or race. There are also laws in place to protect employees’ privacy, including the Federal Data Protection Act.
Switzerland is in an unusual position in Europe in that it is in the Schengen area but not in the EU. Unlike most of its neighbours, EU legislation and directives such as the Whistleblowing Directive do not apply in Switzerland. That means that even employees who are accustomed to hiring norms and labour laws in EU countries should carefully study the rules in Switzerland to ensure their Swiss operations are compliant. This not only protects your employees, but also safeguards your business from legal, financial, and reputational risks.
There is currently no law in Switzerland protecting whistleblowers or requiring employers to put in place reporting channels. There have been several efforts to introduce such measures over the last two decades, but these have been rejected by either the Federal Council (Bundesrat) or the National Council (Nationalrat).
Courts in Switzerland therefore continue to assess each case separately with only case law to guide their decisions. Switzerland is under significant pressure to introduce measures to facilitate whistleblowing and safeguard those who make reports, including by the OECD.
Though there is no legislation governing the actions of whistleblowers in Switzerland, case law does provide some guidance on how employees should report irregularities in the workplace. Employees must first report misconduct internally to the employer and only disclose the issue to the relevant authorities if no action is taken. Employees may report publicly only if no action is taken by the authorities and the misconduct is serious enough to constitute a threat to the public interest.
Employers in Switzerland have no obligation to set up reporting channels for whistleblowers. However, they can do so on a voluntary basis. This is generally considered best practice, especially for large organisations. Not doing so can mean that reports of legal violations or violations of internal rules and values do not reach the necessary people, or only reach them after significant delays.
Generally speaking, the culture in Switzerland is one that values privacy and the protection of personal information. For this reason, there are strict rules about data protection in Switzerland that you need to be aware of as an employer.
As Switzerland is a non-EU country, the General Data Protection Regulation (GDPR) does not apply. However, the country’s main piece of data protection legislation, the Federal Data Protection Act (DPA) contains similar provisions. Other data protection legislation in Switzerland includes the Swiss Unfair Competition Act (UCA), the Swiss Telecommunications Act and the Swiss Penal Code. The national supervisory authority is the Swiss Federal Data Protection and Information Commissioner (FDPIC).
Employers in Switzerland must have the consent of employees or job candidates to process their personal data. They should only process data if it is necessary for the performance of the employment contract or to assess a candidate’s suitability for a role. Employers should also keep in mind that, while employees can consent to having their data processed, it can be difficult to prove consent was given voluntarily in case of a dispute.
Employers in Switzerland can implement surveillance systems in the workplace. However, these must comply with the country’s data protection regulations. First, surveillance systems must meet an objective need, such as safety or accident prevention. Installing surveillance systems to monitor employees at their workstations is not permitted. Surveillance should also be proportional and fair.
When an employer needs additional labour to cover temporary needs, they may engage workers through a temporary work agency. While this arrangement exists in Switzerland, labour leasing is heavily regulated and subject to certain requirements.
Employers who hire out workers to third parties on a commercial basis in Switzerland must obtain a permit from the competent cantonal (state) office for economic affairs and labour. They must also pay a security deposit of at least CHF 50,000 to pay wage claims. All licenced labour leasing companies in Switzerland are subject to a generally binding collective agreement.
Temporary work agencies in Switzerland hire workers under an employment contract. They then offer the employee work with third-party user companies. When an employee accepts an assignment, the agency concludes an agreement with the user company, which will be responsible for supervising and directing the work.
In Switzerland, temporary agency workers have been entitled to the same pay as permanent employees performing the same role since March 2012. This is due to the implementation of the Federal Act on the Hiring of Services (Entsendegesetz), which was brought in to protect temporary agency workers and ensure equal pay for equal work.
Switzerland has a strong legal framework to protect employees from discrimination, including the Swiss Constitution, the Gender Equality Act, and the Federal Act on Equal Treatment of Women and Men.
Employers in Switzerland are prohibited from discriminating against employees based on their ‘personality traits’. This is generally understood to mean their:
In addition to Switzerland’s anti-discrimination laws, international agreements between Switzerland and the EU expressly prohibit discrimination on the basis of an employee’s nationality. Employers are not allowed to treat employees differently based on any of these characteristics with respect to hiring, compensation, working conditions, promotion, demotion, benefits, and termination.
Both the Swiss Gender Equality Act and the Federal Act on Equal Treatment of Women and Men expressly prohibit sexual harassment of employees. This is defined as including threats, the promising of job-related advantages to obtain favours of a sexual nature. Employers in Switzerland must take all reasonable steps to prevent sexual harassment in the workplace. Employees who have been sexually harassed may suspend their work and continue to receive pay. They may also terminate their employment contract with immediate effect and are entitled to damages equivalent to the amount they would have been paid during the notice period.
Equal pay has been enshrined in the Swiss Constitution since 1981. The Gender Equality Act, which came into force in 1996, also prohibits discrimination based on gender in various aspects of employment, including compensation. Despite this, Switzerland still has a pay gap of around 18%. The Swiss government has put in place various measures to combat the issue of pay inequity and reduce or eliminate the pay gap.
In 2020, the Swiss government passed a revision to the Gender Equality Act that will be in place for 12 years (until 2032). Under this law, employers with more than 100 employees are required to conduct an analysis of equal pay within their organisations, in line with a recognised method. The analysis must be verified by an authorised external body and then communicated to employees (and shareholders for public companies). Companies must repeat this analysis every four years until an analysis shows that the company has achieved equal pay.
In 2023, the EU approved a new directive on pay transparency, which will introduce changes to the way companies across the EU handle compensation. Although Switzerland is not an EU country, many Swiss companies hire employees from the EU. These employers will need to ensure their operations comply with the rules set out in the directive.
Understanding what you can and can’t do as an employer is one of the biggest challenges of hiring in Switzerland. Get it wrong, and you could face legal action and damage to your reputation.
Our solutions protect both you and your workers, thanks to our team’s in-depth knowledge of local and international labour laws. That means you can stop worrying about compliance issues and focus on getting the job done.
The main employee protection laws in Switzerland are the Swiss Code of Obligations, Employment Act, Gender Equality Act, Federal Act on Data Protection and Accident Insurance Act.
The Code of Obligations covers the employment relationship and requires employers to protect employees’ health, dignity and personality rights. The Employment Act regulates areas including working and rest time, health protection and protections for young workers and pregnant or nursing employees. The Accident Insurance Act covers mandatory accident insurance and, together with its implementing ordinances, occupational accident and illness prevention.
The Gender Equality Act (GlG/GEA) prohibits discrimination based on sex throughout employment, including recruitment, pay, promotion, working conditions, training and dismissal. It also protects employees from sexual harassment.
Employee personal data is protected by the Federal Act on Data Protection (FADP) together with specific employment protections in the Code of Obligations. There is no single Employee Protection Act in Switzerland. Employers need to comply with the specific laws covering each area of the employment relationship.
Switzerland does not currently have a general Whistleblower Act protecting private-sector employees who report wrongdoing.
Instead, whistleblowing is mainly governed by an employee’s duties under the Swiss Code of Obligations and Swiss court decisions. Employees have duties of loyalty and confidentiality, which affect when and how information about suspected wrongdoing can be disclosed.
As a general principle, employees should normally raise concerns internally first and give the employer an opportunity to address them. External reporting can be protected in certain circumstances, particularly where there is an overriding public or third-party interest and internal reporting has not resolved the issue. Whether a disclosure is protected can require an assessment of the individual circumstances.
Some regulated industries have separate reporting requirements and protections.
Swiss employers can monitor employees for legitimate purposes such as security, work organisation or performance, but they cannot use monitoring systems primarily to watch employee behaviour.
Under Article 328b of the Code of Obligations, employers can process employee data only where it relates to the employee’s suitability for the job or is necessary for the employment relationship. The Federal Act on Data Protection also requires employee data to be handled lawfully, transparently and proportionately.
This has practical implications for CCTV, email monitoring, GPS tracking and employee-monitoring software. For example, continuous tracking of keystrokes, mouse activity or computer use for the purpose of monitoring behaviour can breach Swiss employment rules.
Where monitoring is justified, employers should use the least intrusive method suitable for the purpose and inform employees in advance.
Employees in Switzerland have a legal right to equal pay for work of equal value regardless of gender. This right is protected by the Federal Constitution and the Gender Equality Act (GlG/GEA).
The Gender Equality Act prohibits direct and indirect gender discrimination in pay. Employees who believe they are being paid unfairly because of gender can bring a claim under the Act. The comparison is not limited to employees with identical job titles. Work of equal value may be assessed by reference to factors such as responsibilities, qualifications, effort, working conditions and the value of the role to the organisation. A pay difference must be supported by objective, consistently applied and non-discriminatory factors.
Employers with 100 or more employees are also subject to Switzerland’s equal pay analysis requirements. Employers reaching the 100-employee threshold must conduct an internal equal pay analysis and have it independently reviewed. Employees must be informed in writing of the results.
Where an analysis demonstrates compliance with equal pay requirements, the statutory rules determine whether another analysis is required. Where the requirements are not met, the analysis must be repeated after four years.
The main anti-discrimination protections for employees in Switzerland come from the Gender Equality Act, the Swiss Code of Obligations and the Federal Constitution. Switzerland does not have one comprehensive employment discrimination law covering every protected characteristic in the private sector.
The Gender Equality Act is the main workplace anti-discrimination law. It prohibits direct and indirect discrimination based on sex and applies to recruitment, pay, working conditions, training, promotion and dismissal. It also covers discrimination related to pregnancy, marital status and family situation, as well as sexual harassment. The Act applies to both private and public employment relationships. The protection also covers discrimination based on gender identity or sexual orientation where the unequal treatment constitutes discrimination based on sex under the interpretation of the Act. The exact legal basis and available remedies depend on the circumstances.
The Swiss Code of Obligations requires employers to protect employees’ personality rights, health and personal integrity in the workplace, including protection against sexual harassment.
The Federal Constitution also prohibits discrimination on grounds including origin, race, sex, age, language, social position, way of life, religious or political beliefs and disability. However, these constitutional protections do not operate as a single comprehensive anti-discrimination law for private employment.
Temporary agency workers in Switzerland are protected by the Federal Recruitment Act (AVG), which regulates staff leasing and requires commercial staffing providers to hold the appropriate licence.
The staffing agency is the worker’s employer and is responsible for the employment contract, salary and applicable employer obligations. The company where the employee performs the assignment directs the employee’s day-to-day work within the agreed arrangement.
Switzerland also has a generally binding Collective Employment Agreement for the Staff Leasing Sector (GAV Personalverleih). Where it applies, it sets employment conditions covering areas such as minimum wages, working time, holidays and other employment benefits.
If the client company operates under another generally binding collective agreement, additional pay and working-condition requirements can apply to the temporary worker.
Staff leasing is regulated rather than simply treated as ordinary contracting. Providers operating within Switzerland require the relevant cantonal licence, with additional federal authorisation required for cross-border staff leasing.
The Swiss Gender Equality Act (GlG/GEA) prohibits gender discrimination at work and requires employers to provide equal treatment in hiring, pay, working conditions, training, promotion and dismissal.
The Act also treats sexual harassment as discrimination. Employers must take reasonable preventive measures and respond when harassment occurs. An employer can face compensation claims if it cannot show that appropriate measures were taken to prevent sexual harassment. Preventive measures can include a clear anti-harassment policy, confidential reporting channels, designated contact persons, training, prompt impartial investigations and proportionate corrective action. A policy alone will not be sufficient if it is not communicated or implemented.
Employees who make discrimination complaints also receive protection against retaliatory dismissal during the proceedings and for up to six months after they end.
Employers with 100 or more employees have additional equal-pay obligations, including conducting an internal pay analysis, having the analysis independently reviewed and informing employees of the result.
In summary, employers need to prevent gender discrimination and sexual harassment, provide equal pay and, where the 100-employee threshold applies, complete Switzerland’s formal equal-pay analysis process.
Swiss employers must protect employees’ physical and mental health, prevent workplace accidents and occupational illnesses, and provide a safe working environment.
The main requirements come from the Employment Act, its ordinances and the Accident Insurance Act. Employers must identify workplace hazards and put appropriate measures in place to prevent employees from being injured or becoming ill because of their work.
Requirements cover areas such as workplace design, equipment, working conditions, working and rest periods and protections for employees who face additional risks. Specific rules apply to young employees and pregnant or nursing employees.
Employers must also arrange mandatory accident insurance for employees under the applicable Swiss rules. Occupational-accident insurance is mandatory for employees. Employees who work at least eight hours per week for the same employer must also be insured against non-occupational accidents. Insurance does not replace the employer’s duty to prevent accidents.
The cantonal labour inspectorates and, in certain areas, SECO enforce Employment Act requirements.
To summarise, health and safety under labour law in Switzerland covers both accident prevention and the wider protection of employees’ health at work.
Employees with disabilities have some legal protection in Switzerland, but private-sector employment is not yet covered by a comprehensive disability discrimination law equivalent to the Gender Equality Act.
Article 8 of the Federal Constitution prohibits discrimination because of a physical, mental or psychological disability. Switzerland also has the Disability Discrimination Act (BehiG), which aims to remove disadvantages faced by people with disabilities.
However, the current Act does not provide the same broad employment protections across all private-sector employment relationships. Its employment provisions are principally relevant to employment relationships governed by the Federal Personnel Act. The Act does not currently establish a comprehensive private sector right to reasonable accommodation comparable to frameworks in some other jurisdictions. The Federal Council has proposed extending the law to expressly protect employees with disabilities in private employment and require employers to make reasonable adjustments, but that reform has not yet taken effect.
Private employers still need to consider other protections, including their duty under the Code of Obligations to protect employees’ personality and health.
CXC helps businesses manage employee protection requirements in Switzerland by combining local employment expertise with compliant payroll, HR administration and employee support.
Through our Employer of Record service in Switzerland, CXC manages locally compliant employment contracts, statutory benefits, payroll, social insurance, leave and employee records. We also support the local HR processes that sit around employee relations, including workplace concerns, performance issues and employee exits.
This is particularly important in Switzerland, where employers need to account for federal employment law alongside cantonal requirements, collective labour agreements and the regulated staff-leasing model used for EOR arrangements.
With more than 30 years of workforce management experience, CXC supports global and enterprise businesses managing workforces across Switzerland and multiple international markets.
Speak to our team to learn more about managing employee protection and employment compliance in Switzerland with CXC.
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