Employment contracts in Switzerland

In Switzerland, the rules governing employment contracts are set out in the Swiss Code of Obligations (CO), in addition to other laws and regulations applicable to certain sectors of activity.
The CO contains the general provisions that apply to all employers and employees in Switzerland.
Other rules are specific to certain types of workers or professions.

An employment contract is an agreement between an employer and an employee, in which the employer undertakes to provide work to the employee and to pay him or her in return.
Although the contract can be concluded orally, it is preferable to draw it up in writing to avoid any misunderstanding or conflict.

Types of contract (permanent, fixed-term, temporary, etc.)

There are various types of employment contract in Switzerland, each with its own particular characteristics in terms of duration, obligations and rights of employers and employees.
The main types of employment contract include the open-ended employment contract (CDI), which is the most common in Switzerland.
This type of contract is concluded for an indefinite period, and a trial period may be agreed.
A fixed-term employment contract (CDD), on the other hand, is concluded for a specific period, ranging from a few months to several years, and terminates automatically on expiry of the agreed period.
It may also include a trial period.
The temporary employment contract (CTT) is another type of fixed-term employment contract, concluded between a temporary employment agency (ETT) and a temporary worker who is placed at the disposal of a user company for a specific assignment.
The contract automatically terminates at the end of the assignment.

Drafting and essential clauses

In Switzerland, the conclusion of an employment contract is governed by the principle of freedom of contract (art. 19 CO).
In other words, the parties are free to negotiate the terms and conditions of their agreement, subject to the mandatory provisions of the law.

An employment contract must include certain essential clauses to guarantee the rights and obligations of both parties.
In Switzerland, when an employer and a worker sign an employment contract, it must include information such as the names of the employer and the worker, the start date of the employment relationship, the worker’s job title, the salary and any wage supplement, and the working week.
If the contract is for a fixed term, the employer must clearly specify the end date.
In addition, any specific rules relating to the contract, such as prohibitions on competition or overtime, must be included in the contract.
Careful drafting of these clauses is crucial to avoid any subsequent disagreements or disputes.

Contract modification and termination

In Switzerland, there are various ways of modifying or terminating an employment contract, depending on the circumstances.
A modification can be made by mutual agreement between employer and employee.
If the modification concerns essential clauses of the contract, the employee must give his or her consent.

The Swiss Code of Obligations specifies how employment contracts may be terminated, depending on their duration.
Fixed-term employment contracts do not require notice of termination (art. 334 para. 1 CO).
In the case of open-ended employment contracts, either the employer or the employee may terminate the contract, but must observe specific notice periods depending on the circumstances (art. 335 al. 1 CO).
In addition, during the trial period, which generally corresponds to the first month of employment, either the employer or the employee may terminate the contract at any time (art. 335b al. 1 CO).

In the event of an employee’s illness or accident, the employer is not entitled to dismiss him or her, and the employee benefits from legal protection.
This protection varies according to the employee’s length of service, and lasts for 30 days during the first year, 90 days from the second to the fifth year, and 180 days from the sixth year onwards (art. 336c al. 1 let. b CO).
Women also benefit from similar protection, for a period of 16 weeks following childbirth (art. 336c al. 1 let. c CO).

If one of the parties terminates the employment contract unfairly, it is obliged to pay compensation to the other party (art. 336a CO).
The employment contract may be terminated immediately and without notice if one of the parties commits a serious breach that makes it impossible to continue the employment relationship (art. 337 CO).
Serious misconduct is defined as a breach of the obligations arising from the employment contract which is so serious and fundamental that the injured party can no longer be required to maintain the contract in force.
Acts constituting gross misconduct may include theft, violence, harassment or disclosure of trade secrets.

If you encounter problems or disagreements concerning your employment contract, it is strongly recommended that you seek the advice of a specialist lawyer, in order to protect your rights and interests, whether you are an employer or an employee.