Employment contracts in Switzerland

Once you have found a job in Switzerland that you like and have submitted your CV and completed the interview process, you will then be at the stage to negotiate and sign your contract. Contracts in Switzerland set the parameters of the working relationship between the employer and employee.

Employment contracts in Switzerland

According to the official Swiss Code of Obligations, Switzerland assures “maximum freedom of contract”, allowing for employers and people working in Switzerland to have the freedom to decide upon the terms of the contract without significant government oversight.

This means that the format of the contract is for the employer and employee to decide upon together.

Editing and signing a work contract in Switzerland (Arbeitsvertrag)

If you have accepted a job offer from a company in Switzerland, they will draft and then send you a work contract. You are encouraged to read the whole contract to make sure that you are happy with all of its terms. 

If you have a query about a certain clause, it is essential that you contact your company to clarify what it means and to discuss possible amendments. Once you are bound by a contract, you cannot modify its content without a revision, with the consent of your employer, so it is essential to make sure the contract is good before you sign it.

If you believe that you are being unfairly restricted or underpaid in your contract, it is recommended that you contact a lawyer for further advice.

Things that are included in a Swiss employment contract

Any job offer of full-time or part-time work in Switzerland must have a thorough employment contract. It is highly recommended that you check your contract carefully to avoid confusion and highlight possible changes you might want to make. Some of the most common things detailed in Swiss employment contracts are:

• Description of the role
• Contract start date
• Duration of the contract
• Probation period 
• The canton where your contract will be enforced
• Notice period and criteria for contract termination or grounds for losing your job
• Working hours
• Salary and the expected deductions for social security
• Holiday entitlement
• Bonuses and allowable expenses
• Sick pay
• Labour agreements such as union affiliation
• Confidentiality clauses and liability criteria
• Intellectual property rights
• Details regarding the company’s pension scheme

Employment contract types in Switzerland

Switzerland has several different types of employment contracts. Contracts are usually defined by the amount of work you do for a company and the frequency of the work you are doing.

Fixed-term contracts

Both part-time and full-time work contracts can be designed to be fixed-term or permanent. Fixed-term contracts last for a specific period of time. After the term of the contract is up, it is up to the employer as to whether they offer an extension to the fixed-term contract, upgrade it to a permanent contract, or decide to not offer a new contract.

Permanent contracts

Permanent contracts run for an unspecified, indefinite period of time. Both employer and employee are allowed to terminate the contract under certain conditions, but in most cases a notice period has to be observed by both employer and employee. 

Job sharing in Switzerland

According to the Swiss Labour Force Survey (SLFS), around 4 percent of employees job share in Switzerland. Job sharing is where you agree to split the number of hours listed in a full- or part-time contract with another person. This is a mutual agreement between two people and requires the consent of your employer. Job sharing can be an excellent way to maintain a good work-life balance such as for raising a family or during pregnancy.

Temporary contracts or business transactions

If you plan to work for a company for the time it takes to complete a specific project, you will most likely be offered a temporary contract. These contracts are terminated upon the completion of a pre-agreed project or service. These contracts can be offered as a pay per hour salary or a lump sum amount. All production contracts are pre-agreed in the same way as fixed-term contracts, with special criteria allowed for the termination of the contract. Contracts like these are most commonly offered to freelancers.

Probation periods in Switzerland

Most employment contracts in Switzerland will contain a probation period. This is a period, usually lasting between one and three months, where the employee is "on trial".

During this time, shorter notice periods apply should either the employer or the employee wish to terminate the contract - usually seven days, unless otherwise specified in your contract. 

The employee also has fewer rights compared to a regular employee, for instance:

• If you fall ill or have an accident and are unable to work, you do not have protection against dismissal, and your employer can terminate your employment contract. 
• If you become pregnant, you are not protected from dismissal, and your employer can dismiss you - but bear in mind that you are never obliged to inform your employer that you are pregnant. 
• You have no guaranteed right to holiday leave during your probation period. 

Probation periods typically last one month, but your employer may offer you a longer or shorter probation period (up to a maximum of three months). This needs to be agreed upon in writing. The probation period must always be the same length for both employer and employee. 

At the end of the probation period, employer and employee usually meet up for an appraisal, to discuss the probation period and to decide whether to continue the employment relationship.