Swiss employment law 101: Job contract basics every expat should know
Moving to Switzerland for work is an exciting milestone, but navigating Swiss employment contracts can be challenging. Avenras Legal, a Zurich-based law firm, helps companies and individuals in all areas of business law. Based on their experience, here are some of the key legal essentials every newcomer should know before signing an employment contract.
Starting a job in Switzerland: Contracts and probation
Employment contracts do not require a specific format, though written contracts are standard practice. By law, certain clauses (e.g. a non-compete or non-standard notice periods) and certain contract types (e.g. an apprenticeship) must legally be executed in writing with wet-ink signatures.
Work contracts in Switzerland typically outline the role, salary, workload (often in a percentage), start date and notice period.
The statutory Swiss probation period is one month, but three months can also be common. During probation, either the employer or employee can end the contract with seven days' notice.
After an employee has successfully passed the probation period, notice periods are usually three months but can also go up to six months for senior roles.
Salaries in Switzerland are generally paid monthly and include mandatory deductions for social security (AHV/IV), unemployment insurance (ALV) and pension fund contributions (Pensionkasse).
Working hours and overtime pay in Switzerland
Swiss labour law sets strict weekly limits on how many hours can be worked: 45 hours for office, technical, and retail staff, and 50 hours for all other employees.
Overtime (Überstunden), hours worked beyond what is in a contract, and extra time (Überzeit), hours worked beyond the legal maximum, are paid with a 25 percent salary premium or compensated with time off. For some positions, overtime compensation is often explicitly waived in the contract.
Remote work
Switzerland has no statutory right to remote work; it depends on the employment contract or company policy. In practice, many office roles allow 20 to 40 percent home office work.
While occasional remote work from abroad is usually unproblematic, working regularly from outside of Switzerland can trigger tax and social security implications. Always consult HR or a Swiss employment lawyer before working cross-border.
Vacation, sick leave and family benefits
Employees in Switzerland are entitled to at least four weeks of paid vacation per year (five weeks up to the age of 20). While buying extra vacation days is not a statutory right, many employers allow staff to purchase additional leave through minor salary deductions.
Statutory paid parental leave covers 14 weeks for mothers and two weeks for fathers or the other parent at 80 percent salary. Many international employers offer longer paid family leave.
During sickness or an accident, employees continue to be paid for a set period, usually through daily sickness benefits insurance (about 80 percent of salary, for up to two years).
Ending the employment
A permanent employment contract can only be ended with notice. The employment contract often requires written notice. This means an employee must submit a signed paper document with a wet-ink signature, rather than an email or scanned document.
Swiss law protects employees from dismissal during illness, accident, pregnancy and maternity leave. While an abusive termination still ends the contract, the employer may be ordered to pay compensation up to six months' salary.
Immediate dismissal or termination of a contract without notice is permissible only when a serious breach of contract has occurred. If unjustified, the employee is entitled to notice pay and compensation of up to six months' salary. Consider seeking help from Avenras Legal if unsure.
Non-compete clauses, where an employee agrees not to work for a competitor after the employment relationship, are tightly limited in scope, duration and geographic area and are mainly used for management positions. When leaving a job, employees can expect a comprehensive, fair reference letter as standard practice in Switzerland.
Get advice tailored to your Swiss career
Every employment scenario is unique. Avenras Legal assists expats across Switzerland with contract reviews, non-compete disputes and severance negotiations. Whether signing your first contract or handling a workplace dispute, get tailored guidance on your rights.