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SALARY PAYMENT IN Swiss Franc (CHF)
CONTRACT LANGUAGES German / French / English
PAYROLL TAX 8.17% – 23.50%
PAYROLL CYCLE Monthly
TIME TO HIRE 24 hours
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Switzerland has a comprehensive system of labor laws that protect the rights of both employees and employers. Swiss labor laws are based on the principle of freedom of contract. This means that employers and employees are free to negotiate the terms and conditions of their employment relationship. Despite this, negotiations must comply with the minimum standards established by the law.
Switzerland has several pieces of legislation that regulate the relationship between employee and employer, as well as business conditions. The primary legislation is the Swiss Code of Obligations (CO). The Code sets out the minimum standards for working conditions, employment contracts, and employee protection. On top of this, there is also a range of other federal laws that outline provisions related to labor conditions including:
Apart from federal protections, there are also Canton-specific laws that vary across the country. Nonetheless, employees enjoy several rights throughout the country, including the right to a minimum and fair wage, rest periods, annual leave, and protection against discrimination and harassment.
Employers are mandated to give sufficient notice to an employee before their termination. Both an employer and employee can terminate employment without a reason but must follow the statutory notice period and termination laws. The amount of notice will depend on how long the employment relationship has lasted. The minimum notice periods are as follows:
If an employee wants to cease employment when given notice, they can take payment in lieu of notice.
Swiss labor law does not provide the general right to severance payments in the event of employment termination. However, employees who are aged over the age of 50 and have worked for 20 years or more are entitled to a severance payout that is equal to a minimum of 2 months’ salary.
Your business can easily hire employees in Switzerland without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
The most relevant piece of legislation governing the relationship between employer and employee is the Swiss Code of Obligations (CO). The code also sets out relevant provisions about working conditions.
It is possible to terminate an employee during their probationary period without any reason. Employers must give at least 7 days’ notice to the employee in this case.
An employee can terminate their employment during their probationary or trial period if they give 7 days’ notice to their employer. Employees do not need to give a reason for why they want to terminate their contract.
Once an employee has completed their probationary period, employers are obligated to give at least a 30-day notice period within the first year of employment. The notice period increases the longer an employment contract lasts with an employee. Employers do not need to give any reason as to why they are terminating the contract but do need to provide the termination details in writing. The notice period begins as soon as the affected party receives and accepts their notice.
