Employment contracts are essential documents that outline the rights and obligations of both employers and employees. If you want to hire employees in Switzerland, it’s important to understand the unique rules related to employment contracts to ensure you meet your obligations as an employer.
In this section, we’ll discuss some of the different types of employment contracts in Switzerland, including fixed-term contracts and the circumstances in which they can be used. We’ll also talk about the minimum terms that employers need to provide in writing to their employees. Finally, we’ll provide details on certain key employee rights, including the rules about working hours and remote work in Switzerland.
An employment contract is a document signed by an employer and employee that defines the key terms of the employment relationship. It sets out the rights and responsibilities of both parties, including the employee’s role and the compensation they’ll receive. In Switzerland, employment contracts must comply with the requirements of the Swiss Code of Obligations and the Labour Act, as well as any applicable collective bargaining agreements.
Collective bargaining agreements (or collective labour agreements) are agreements between trade unions and employers or employers’ associations. They sometimes include ‘standard’ employment contracts which lay out minimum provisions for things like wages, vacations, working hours, leave, and retirement age. If a collective agreement applies to an employer in Switzerland, they are not allowed to deviate from the standard employment contract.
In sectors where no collective agreement applies, government or cantonal (state) authorities can issue standard employment contracts for specific occupations, which again provide minimum standards for key employment conditions. These can only be modified by individual employment contracts if they are made more favourable towards the employee.
Probationary periods are permissible and common in Switzerland, up to a statutory limit of three months.
There are certain company policies that are mandatory for employers in Switzerland. For example, industrial companies must have a written health and safety policy. Other common (but not compulsory) policies include expense-reimbursement policies and grievance policies. Whistleblowing policies are not mandatory in Switzerland.
Industrial companies must have their mandatory health and safety policy reviewed by the Cantonal Labour Authority.
In Switzerland, employers are required to provide certain terms to their employees in writing and can also choose to include additional information.
As a minimum, employers in Switzerland are required to provide their employees with certain details in writing within one month of employment. This written statement must include:
Employers in Switzerland can also choose to include additional terms in their employment contracts. For example, many employers include a non-competition clause, which ensures employees don’t work for or set up competing businesses during their employment. These agreements can also be extended beyond the end of the employment relationship, subject to certain conditions.
In Switzerland, a fixed-term contract is a contract that ends automatically on the expiry of its term without notice. That means that if any type of notice is required to end the contract, it doesn’t qualify as a fixed-term contract in Switzerland. We’ll discuss some other types of employment contracts in Switzerland below.
Employers in Switzerland can employ workers on fixed-term contracts for any reason. For example, they’re commonly used to replace other employees who are temporarily out of work because of illness or maternity leave. Employers may also engage workers on fixed-term contracts to work on short-term, one-off projects. For some employment relationships, such as apprenticeship contracts, a fixed-term contract is obligatory.
A key characteristic of a fixed-term contract in Switzerland is that it ends automatically at the end of its term. Fixed-term contracts can’t be terminated by ordinary notice of termination by either the employer or the employee. If an employee and an employer tacitly agree to continue a fixed-term contract after its term, it becomes an indefinite contract.
Maximum-term contracts are another type of contract in Switzerland. Like a fixed-term contract, these have a set end date at which they are automatically terminated. However, they can also be terminated early by either party with the correct notice.
Similarly, minimum-term contracts have a minimum term that must be reached before ordinary notice of termination can be used. Instead of terminating on the end date, they become an indefinite term contract.
An employer in Switzerland can agree to renew an employee’s fixed-term contract if they still require their services. Unlike in some countries, there’s no specific limit on the number of times a fixed-term contract can be renewed or extended.
However, some employee rights, including protection from dismissal and the right to a salary in the case of inability to work, are only available to those on open-ended contracts. Because of this, case law has developed restrictions on employers’ ability to conclude multiple fixed-term contracts with the same employee for the same work.
This means employers can’t use ‘chain contracts’ to effectively deprive employees of their rights. If there is no objective reason for using a fixed-term contract, consecutive contracts are treated as a single indefinite contract with a minimum term that ends on termination of the last fixed-term contract.
This means employers should be careful to only use fixed-term contracts when they have a genuine need. Objective justifications for using a fixed-term contract (or a series of fixed-term contracts) may include:
Working hours in Switzerland vary by industry and by canton. Most employees work between 40 and 44 hours per week, and the standard working week is Monday–Friday.
For industrial and office workers, technicians, and retail staff, the maximum working hours in Switzerland are generally 45 hours per week. In the trade sector, the maximum is 50 hours. In some cases, collective agreements and individual contracts provide for a different number of maximum working hours in Switzerland, though this can’t be more than the statutory limit.
Overtime in Switzerland is defined as any work carried out above the employee’s contractually agreed hours. It’s generally compensated at 125% of the employee’s normal wages. Collective bargaining agreements and employment contracts may provide different conditions as long as they are at least as favourable to the employee.
In some cases, employees can be compensated for overtime with compensatory time off instead of monetary compensation. This time off must be granted within 14 weeks of the overtime, and it’s common to give employees 1.5 hours off per hour of overtime worked. Overtime generally can’t exceed two hours per day, or 170 hours per year for a 45-hour/week contract (140 hours per year for a 50-hour/week contract).
Employees in Switzerland are entitled to breaks during their workday. Depending on the number of hours worked in a day, these may be between 15 and 60 minutes long. Employees also have the right to at least 11 hours of rest between shifts and one full day of rest per week, and.
Employers in Switzerland must have a system in place for tracking their employees’ working hours. This can be done using electronic or mechanical clock in/out systems, manual time entry, or specialised software.
In the past few years, many Swiss companies have embraced remote work, with employees working fully or partially from home. Remote work is not specifically regulated by law in Switzerland, and there’s no general obligation for employers to pay employees for the cost of working from home or setting up a home office. However, collective bargaining agreements may provide rules that employers must abide by, and some large companies have their own regulations. Some public bodies have also introduced internal regulations on remote work.
In today’s world, employees can effectively work from anywhere — including in another country. However, the tax and social security implications of this arrangement can be complex. For this reason, Switzerland signed a multilateral agreement with several EU and EFTA countries in 2023, allowing more flexibility for remote workers.
According to the agreement, remote workers may perform up to 49.9% remote work from their country of residence, while the social insurance laws of the employer’s state of domicile remain applicable. For example, a Swiss company could hire an employee from another country to work partially in Switzerland and partially remotely in their own country. The social insurance laws of Switzerland would apply as long as the remote work doesn’t exceed 49.9% of the employee’s total work time.
Like all countries, Switzerland has its own rules and regulations when it comes to employment contracts — and non-compliance could land your company in hot water.
Thankfully, our team is experienced in drawing up tailored, compliant contracts in Switzerland (and more than 100 countries worldwide). That means that, when you work with us, you won’t need to waste time worrying about whether you’ve got it right. Instead, you can focus on what matters: your business.
Employment contracts in Switzerland are primarily governed by the Swiss Code of Obligations, particularly Articles 319 to 362. These rules cover how employment relationships are formed, salary, overtime, holidays, employee duties, employer obligations, notice, notice, termination and other employer and employee obligations.
The Employment Act also applies to areas such as maximum working hours, breaks, night work and Sunday work. It also regulates daily and weekly rest periods and provides additional health protections for particular categories of workers. However, not every employee or occupation falls within all of its working-time provisions, so coverage should be confirmed for the relevant role.
Some employees are also covered by a collective labour agreement (CLA). Where one applies, it can set additional or better terms for salary, working hours, holidays, sick pay and termination.
For international employers, the employee’s work location is important. Switzerland also has cantonal requirements in areas such as minimum wages, public holidays and taxation.
In summary, a compliant employment contract in Switzerland starts with the Code of Obligations but must also account for applicable federal, cantonal and collective employment rules.
The two main types of employment contracts in Switzerland are indefinite contracts and fixed-term contracts.
An indefinite employment contract has no predetermined end date. Employment continues until the employee, or employer terminates it in accordance with the applicable notice and termination rules.
A fixed-term contract in Switzerland has an agreed end date or ends when a specified period or objectively determinable event occurs.. It generally ends automatically without either party having to give notice.
Swiss law also recognises other employment arrangements, including apprenticeships and commercial traveller contracts, which have additional requirements. Employees can work full-time or part-time under either an indefinite or fixed-term arrangement.
Collective labour agreements can also affect the terms available to employees in particular industries.
In summary, most Swiss employees work under either an indefinite or fixed-term employment contract, with the appropriate structure set before employment begins. The written terms should accurately reflect the real arrangement rather than relying solely on the contract’s label.
No. A standard employment contract in Switzerland does not generally have to be in writing to be legally valid. It can also be agreed verbally or arise from the parties’ conduct.
However, where an employment relationship is agreed for more than one month or for an indefinite period, the employer must provide certain information in writing within one month of employment starting. This includes the names of the parties, start date, employee’s role, salary and any salary supplements, and weekly working hours.
Under Article 330b of the Swiss Code of Obligations, changes to these required particulars must also be communicated to the employee in writing within one month after they take effect. This information obligation does not mean that every term or contractual amendment can be imposed unilaterally. Certain arrangements and clauses must be in writing to be valid. For example, apprenticeship contracts require written form, and written requirements also apply to certain non-compete clauses.
For international employers, a written employment contract in Switzerland is strongly recommended because it documents salary, working arrangements, benefits, notice and other agreed terms.
A Swiss employment contract should clearly state who is being employed, when employment starts, the employee’s role, salary, working hours, workplace and the other terms that apply to the employment relationship.
For employment lasting more than one month or indefinitely, Swiss law requires the employer to provide written information covering the parties, start date, role, salary and salary supplements, and weekly working hours.
A comprehensive employment contract in Switzerland will normally also cover holidays, probation, notice, benefits, overtime, confidentiality and intellectual property. The workplace and canton should be clearly identified because cantonal requirements can affect the employment relationship. For remote or hybrid employees, the agreement or an accompanying policy should identify approved work locations, working-time expectations, equipment, expenses, data security and the process for requesting work from another country.
If a 13th-month salary is offered, the contract should state how and when it is paid. Switzerland does not generally require a 13th-month salary by law, but it is common in many employment packages. The document should distinguish a contractual 13th-month salary from a discretionary bonus, because the legal treatment and payment entitlement can differ.
A post-employment non-compete clause must be in writing and is only enforceable under specific conditions. It must protect qualifying employer interests and be appropriately limited by place, time and type of business.
A fixed-term contract in Switzerland ends automatically on the agreed end date and generally does not require notice.
The contract should clearly state when the employment begins and ends. The end may be linked to a defined date, period or objectively identifiable event, but it must be sufficiently clear for the parties to determine when employment will finish. If the employee continues working after the fixed term expires and no new fixed term is agreed, the employment relationship generally becomes indefinite.
A fixed-term employee still receives the employment protections that apply during the contract, including salary, holiday and applicable social insurance rights.
Early termination is different. A fixed-term contract generally cannot simply be ended early through ordinary notice unless the contract provides for that possibility. Immediate termination for serious cause remains possible where the legal requirements are met.
Employers also need to be careful when repeatedly using fixed-term contracts for the same employee. Swiss law can treat unjustified successive contracts as an attempt to avoid employee protections.
Swiss law does not set a specific maximum number of times a fixed-term employment contract can be renewed. However, repeated fixed-term contracts without an objective reason can be considered abusive.
This is particularly important when an employer repeatedly renews contracts to avoid rights that an employee would otherwise receive under continuous or indefinite employment.
A legitimate reason for another fixed term may exist where the work itself is genuinely temporary, such as a defined project or temporary replacement. The reason should be genuine rather than simply restarting the contract each time the previous term expires.
If a fixed-term contract expires and the employee simply continues working without a new fixed term being agreed, the employment relationship generally converts to an indefinite contract.
Before an employee starts work in Switzerland, employers should confirm the contract type, salary, working hours, work location, benefits, notice terms and any collective or cantonal requirements that apply.
The contract should identify the employer and employee and record the start date, role and agreed pay. Employers should check the minimum wage and public-holiday rules in force for the relevant canton on the intended start date. They should not assume that the rules applying at the employer’s registered office govern an employee who habitually works elsewhere. Employers should also check holiday entitlement, probation, overtime arrangements, confidentiality and intellectual property terms.
The work location and canton need attention because Switzerland does not have one national minimum wage. Cantonal minimum wages currently apply in several cantons, while collective or standard employment agreements can set minimum pay in particular industries.
Employers should also check whether a collective labour agreement applies before finalising the contract. If a non-compete is required, it must meet Switzerland’s specific written-form and enforceability requirements.
For foreign employees, right-to-work and permit requirements should also be confirmed before the start date.
The 2023 cross-border telework agreement allows eligible employees to work from home in another participating European country for at least 25% but less than 50% of their working time while generally remaining in the social security system of the country where their employer is based.
The agreement has applied to Switzerland since 1 July 2023 and covers qualifying situations between Switzerland and other countries that have signed the agreement.
For example, an eligible employee of a Swiss employer who lives in a participating country can work remotely there for between 25% and 49.9% of their total working time while remaining under Swiss social security, subject to the agreement’s conditions. An A1 certificate must be requested.
The framework applies only where both relevant states are signatories and the employee habitually teleworks from their state of residence using information technology. It generally concerns employees working for one or more employers established in the same state and does not automatically cover arrangements involving regular work in additional countries or other activities in the residence state.
If cross-border telework remains below 25%, the ordinary social-security coordination rules may already keep the employee insured in the employer’s state, subject to the complete facts. At 50% or more, the special framework agreement cannot be used.
For employment contracts in Switzerland, employers should clearly document the approved remote-work location and working arrangement when an employee regularly works across the border.
The agreement concerns social security only. It does not automatically resolve income tax, immigration or other employment-law questions.
A collective labour agreement can set employment terms that become part of an employee’s individual employment contract in Switzerland, including rules on pay, working hours, holidays, sick pay and termination.
In Switzerland, these agreements are commonly known as collective labour agreements (CLAs) or Gesamtarbeitsverträge (GAV). French-language materials commonly use the term convention collective de travail (CCT), while Italian-language materials use contratto collettivo di lavoro (CCL).
Some agreements apply because the employer and employee are covered by the organisations that negotiated them. Others have been declared generally binding, meaning they can apply across an entire industry or occupation even where the employer or employee is not a member of the organisations that negotiated the agreement.
This is particularly important when setting salary. Switzerland has no federal minimum wage, but a collective agreement may establish mandatory minimum pay and other employment conditions for a particular sector.
In summary, employers should check whether a collective labour agreement applies before finalising an employment contract in Switzerland, because it may determine minimum employment terms. A contractual term that is less favourable than a mandatory CLA provision will not normally override that provision.
CXC helps businesses manage compliant employment contracts in Switzerland by combining local employment expertise with more than 30 years of global workforce management experience.
CXC prepares locally compliant employment agreements that reflect Swiss requirements around salary, working hours, leave, probation, notice and other employment terms. We can also account for canton-specific requirements, applicable collective labour agreements and additional terms such as bonuses, confidentiality and non-compete clauses.
Through our Employer of Record service in Switzerland, CXC manages the employment contract alongside payroll, social security, pension and insurance requirements, benefits, onboarding and ongoing HR administration.
This is particularly useful for companies that need to manage Swiss employees alongside teams in other countries without applying the same contract template to every market.
Speak to our team to learn more about managing employees and their employment contracts in Switzerland with CXC.
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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