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A Guide for Business Owners on Swiss Employment Law

It’s imperative for business owners looking to start or grow operations in Switzerland to understand the complexities of Swiss employment law. The key components of Swiss employment law are summarized in
this guide, assisting you in ensuring compliance and creating a productive workplace for your staff.

Verbal or written employment agreements are both acceptable in Switzerland. To prevent
misunderstandings and potential disputes, it is advised to have written contracts. employment
agreements typically contain:

  • Job title and description of the employee
  • Working hours and pay for overtime
  • Compensation and perks
  • Probationary period
  • Notice requirements and terms of termination
  • Hours of labor and overtime

Depending on the industry, the typical workweek in Switzerland is between 40 and 45 hours. In most
cases, extra work is remunerated with extra time off or money. To ensure employee well-being, employers
must abide by the rules set forth in the Swiss Labor Act regarding working hours, breaks, and rest periods.

Minimum wage and compensation

Although there isn’t a single minimum wage in Switzerland, some cantons and industries have set their
own binding standards. Employers are urged to provide competitive salaries in order to entice and keep
talented workers.

Vacation and public holidays

Younger employees (under the age of 20) are entitled to five weeks of paid vacation per year, with a
minimum of four weeks per year for all employees in Switzerland. Employees are also entitled to public
holidays, which differ between cantons.

Leaves for maternity and paternity

According to Swiss law, mothers must take 14 weeks of paid maternity leave, with a daily allowance of up
to 80% of their pre-childbirth average salary. Within six months of the child’s birth, fathers are entitled to
two weeks of paid paternity leave.

Termination of employment

Both parties may end an employment agreement in Switzerland, and the notice requirement will depend
on how long the employee has worked for the company. Employers must abide by the provisions of Swiss
labor law regarding termination, including giving good cause for termination and honoring the notice

Social security and insurance

Switzerland’s social security system, which covers old age and survivors’ insurance, disability insurance,
and unemployment insurance, requires contributions from both employers and employees. Accident
insurance must be provided to employees by the employer as well.

Work permits and visa

To work in Switzerland, non-Swiss nationals must acquire a work permit and, in some cases, a visa.
Employers are in charge of making sure foreign workers have the required authorizations and visas before
they start working.

In summary, the goals of Swiss employment law are to uphold the rights of both employers and
employees and to encourage fair labor practices. The success of your company in Switzerland depends on
you as a business owner understanding and abiding by these rules.
The professionals at LEGTAX are available to help you if you need assistance with Swiss employment law
or other facets of your business. We provide a variety of services, such as business consulting, legal
counsel, and assistance with human resources. To find out how we can help you navigate the Swiss
business environment, get in touch with us right away.

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