Switzerland is a democratic country with a population of almost
8 million people, located in the heart of Europe and comprised of
26 cantons, also known as districts, that operate utilizing three
official languages: French, German and Italian. Each canton
has its own constitution, legislature, government and courts.
Due to Switzerland's advanced infrastructure, skilled
workforce, and unlike many of its European counterparts, its
ability to maintain a growing and stable economy, it is a very
attractive place for employers to do business.
Employment law in Switzerland is significantly more liberal than
this area of law in most other European countries.
Nevertheless, there are federal and local employment and labor laws
that govern contracts, wage and hour, discrimination, terminations,
lay-offs and privacy. Any company conducting business in
Switzerland or considering doing so should be familiar with the
various laws which govern the employment relationship. The
purpose of this article, which is the first in a series, is to
provide an introduction to the key elements of employment law in
Switzerland. This article will cover the sources of law
governing the employment relationship, the various types of
employment contracts, wage and hour law, and laws pertaining to
holidays and time off.
I. Sources of Law
Employment law in Switzerland is governed by several sources of law
including: (1) the Swiss Code of Obligations (Code des
obligations Suisse), Articles 319 to 343, comprised of
Switzerland's mandatory and discretionary labor relationship
rules applicable to the employer; (2) the Federal Act on Equal
Treatment of Women and Men, which prohibits discrimination on the
basis of gender in both private and public employment
relationships; (3) Federal Labor Statutes, which contain
provisions primarily focused on ensuring the health and safety of
employees working in specified industries; and (4) the Federal
Statute on the Information and Consultation of Employees in the
enterprises.
II. Employment Contracts
Written contracts in Switzerland, although recommended, are not
required by law; as such contracts may be oral or written.
The following terms of employment should be included in any written
contract:
- Title of position;
- Start date;
- Whether there is a probationary period, governed by Article 335c of the Swiss Code of Obligations, which can vary from one to three months;
- The length of the contract, specifying whether the term of employment is fixed or permanent;
- The annual salary governed by Articles 322, 323, 323b of the Swiss Code of Obligations;
- Notice provisions applicable to the termination of the employment relationship governed by Articles 334, 335 and 337 of the Swiss Code of Obligations;
- The amount of vacation time governed by Article 329 of the Swiss Code of Obligations; and
- Standard working hours governed by Article 9 of the Federal Labor Law.
Employment relationships in certain industries such as the machine industry and pharmaceutical industry are governed by collective agreements negotiated by trade unions, companies and industry associations. The terms of these agreements contain mandatory provisions required by the federal government and are binding for all employers in the applicable sector.
III. Wage and Hour Law
There is no statutory minimum wage in Switzerland and in May of
2014 voters rejected a proposal to institute one; however,
collective bargaining agreements and employment agreements can
include a set minimum wage. Pursuant to the Federal Statute
on Employment, non-management level employees are prohibited from
working more than forty-five to fifty hours per week depending on
the particular employment sector. Overtime is compensated at
a surcharge, typically 125% of the regular rate of pay, or by time
off unless contractually excluded. Additionally, employers are
required to provide employees with a rest break in the amount of
fifteen minutes after five-and-a half hours of work and thirty
minutes after seven hours of work. Employers must also
provide employees with at least one day off per week, typically
Sunday.
IV. Holiday Requirements
Pursuant to Article 329 of the Code of Obligations, each employee
is entitled to four paid weeks off per year unless a longer
entitlement is contractually provided for. Employees who are
twenty years of age or younger are entitled to five paid weeks off
per year. Employees are entitled to unpaid public holidays in
addition to the four weeks. Public holidays include the Swiss
Nation Day (August 1), cantonal and local public holidays.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.