Swiss Employment and Labor Law

Swiss Employment Contract

We strongly recommend that all employees be provided with a formal Swiss employment contract. The contract should contain any relevant details of the employment arrangement, such as wages, leave and termination provisions. Swiss francs should be used when referring to salaries/wages.

Working with our Swiss PEO, Remoly's team of local experts can provide assistance in drafting strong employment contracts that comply with local regulations.

Fixed Term

Indefinite

Working Hours in Switzerland

Working hours vary for different types of employees in Switzerland, with working hours ranging from 45 to 50 hours per week. But in reality, the standard work week for more employees is about 40 hours. Overtime pay is at least 25% higher than regular wages, and specific terms are usually stipulated in each employment contract.

Holiday Policy

Swiss Vacation

All employees in Switzerland are entitled to at least 20 days of paid leave. Some employers may choose to offer more, or employees may negotiate more based on their individual circumstances.

Swiss Sick Leave

Employers are required to provide up to three weeks of paid sick leave during an employee's first year with the company, but the exact amount depends on the state. Employees who are absent from work for more than three consecutive days must provide a medical certificate. The stipend may change after one year of employment, but the length depends on the position, length of position and state.

Parental Leave in Switzerland

In Switzerland, mothers can enjoy paid maternity leave as long as they have been continuously employed by an employer for at least three months and paid social security benefits for a certain period. In every canton except Geneva, mothers are allowed 14 weeks of rest (at 80% of salary) after the birth of their child. In Geneva, the allowance is 16 weeks. Their work role is also protected for 26 weeks after the birth of the child.

Mothers are also entitled to special allowances to protect their health, such as being able to avoid manual labor, night shifts, etc.

Fathers are not entitled to any paid paternity leave, but some companies offer a stipend as part of their benefits package.

Swiss Tax

Employers' state rates are progressive, ranging from 0% to 11.5%, but each state charges additional rates based on location.

Switzerland's national corporate tax rate is around 8%, but each canton also charges its own rate, so wherever you operate, it's important to understand local regulations.

Hhealth Insurance in Switzerland

Switzerland has a very complete medical system and insurance must be handled by employees. Some employers do offer insurance, but it is not required.

Dismissal and redundancy in Switzerland

The period of notice that must be given to an employee before termination depends on the period of employment:

• Maximum employment period of one year = one month’s notice
• Two to nine years = two months’ notice
• Ten years or more = three months notice

For employees on probation, the notice period is at least 7 days.

The law does not require severance pay.

For companies expanding overseas for the first time, dealing with employee layoffs and dealing with severance packages can be complicated. Remoly's Swiss PEOs can reduce risk for foreign companies and provide guidance along the way.  

Salary and Benefits in Switzerland

Swiss Compensation Law

Swiss cantons set their own minimum wages. One of the cantons, Geneva, set a record for the highest minimum wage in the world in 2020, reaching at least 23 Swiss francs per hour.

Benefits Administration in Switzerland

Setting up a benefits system for Swiss employees can be difficult if you're not familiar with the country and its unique labor laws (which can vary from region to region). If you want to set up your benefits system independently, it may take you weeks or even months, which may significantly delay your expansion in Switzerland.

Remoly offers an alternative that significantly simplifies the setup and operation of the Swiss benefits system. Our outsourced services can cover all of your benefits setup and ongoing management, helping you focus on faster, more successful expansion.