The employment contract in Switzerland

The employment contract in Switzerland is governed by articles 319 to 362 of the Swiss Code of Obligations (CO). Unlike in other European countries, Swiss employment law is characterised by great flexibility and a relatively small number of mandatory provisions. This flexibility benefits both employers and employees, but it calls for particular care when drafting the contract.

An employment contract can be concluded orally or in writing, but the written form is strongly recommended to avoid disputes. If the contract lasts more than one month, the employer must in any case inform the employee in writing of the main elements no later than one month after the start (art. 330b CO). The essential elements to include are: the identity of the parties, the start date, the job and the employment rate (percentage), the gross salary (stating allowances, any 13th-month salary, which is only due if agreed or provided for by a CCT, and bonuses), the length of the probation period, the notice periods, the place of work and any special clauses (non-competition, confidentiality, intellectual property).

The first month is considered the probation period (art. 335b CO), but it can be extended to up to three months by written agreement, standard employment contract (contrat-type) or CCT. During the probation period, the notice period is seven days. After the probation period, notice is given for the end of a month, with a notice period of one month during the first year of service, two months from the second to the ninth year, and three months thereafter (art. 335c CO). These notice periods can be changed by written agreement, standard employment contract or collective labour agreement (CCT), but a notice period of less than one month is only possible through a CCT and only for the first year of service. The notice periods must be the same for both parties.

Collective labour agreements (CCT) play an important role in many sectors. They set minimum working conditions that apply to the individual contracts they cover, particularly when they have been declared generally binding by the authorities. The main generally binding CCTs cover construction, hotels and restaurants, cleaning and staff leasing (temporary work). Check whether your sector is subject to a CCT before drafting the contract.

In the event of dismissal, protection against unfair dismissal (art. 336 CO) prohibits terminations that are discriminatory or intended to prevent claims from arising (for example, just before a bonus is due). After the probation period, dismissal by the employer during certain protected periods (illness, accident, pregnancy and the 16 weeks after giving birth, military service) is void; if notice was given before such a period, the notice period is suspended (art. 336c CO). Compensation for unfair dismissal can reach six months' salary, provided you object in writing before the end of the notice period and then take legal action within 180 days of the end of the contract (art. 336a and 336b CO).

SwissDoc helps you draft an employment contract based on the Code of Obligations, as well as employment-related letters (resignation, request for an employment reference). Always check whether a collective labour agreement (CCT) applies to your sector. Your first three documents are free, no credit card required.