Employment law

We advise employees on employment contracts, wages, working time, termination and employment references under Swiss law. In employment disputes, we examine your claims and support negotiations and enforcement of your rights in court.

Business discussion symbolising the employment relationship

Employment contract and applicable rules

Private-law employment relationships are governed by the Code of Obligations (OR), particularly Art. 319 et seq. Depending on the activity, the Labour Act, a collective employment agreement, a standard employment contract and workplace regulations may also apply. Public-law employment may be subject to other rules.

An employment contract can generally also arise orally or through actual conduct. A written agreement clarifies duties, employment percentage, wages, working hours and notice periods. Special formal requirements apply to certain agreements and information obligations.

Wages, working time and holidays

The agreed wage and its components should be documented clearly. Overtime exceeding contractual hours must be distinguished from excess hours above the statutory maximum. Remuneration, time off in lieu and permissible deviations follow different rules.

The OR generally provides at least four weeks' holiday per year of service; employees under 20 are entitled to at least five weeks. During employment, holidays should serve rest and generally cannot be replaced by payment. Timing, reduction and payment on departure must be examined separately.

Illness, termination and employment references

Where an employee is prevented from working through no fault of their own, the statutory conditions may require continued wages for a limited period. Daily sickness benefit insurance and contractual arrangements may affect practical handling. A medical certificate and timely notification help document the situation.

Under Swiss private law, termination is not invalid merely because no objective reason is stated. However, abusive termination, termination during protected periods and summary dismissal are subject to special rules. After probation, illness, accident or pregnancy in particular may trigger protection against termination for a specified period.

Employees may request an employment reference describing the nature and duration of employment as well as performance and conduct. On specific request, a confirmation limited to the nature and duration of employment must be issued.

Frequently asked questions

Is an oral employment contract valid?

Generally yes. A private-law employment contract can also arise orally. Individual terms, such as a post-contractual non-compete clause, require a particular form. Statutory duties to provide written information may also apply. A written agreement is recommended for evidential purposes.

Must overtime always be paid?

Not necessarily in the same way. The type of additional work, contractual agreements and any collective employment agreement are decisive. Under certain conditions, overtime may be compensated by time off; special limits apply to different remuneration arrangements and statutory excess hours.

Can I be dismissed while ill?

After probation, illness through no fault of your own may trigger a statutory protected period. Its duration depends partly on the year of service. Employer termination during that period may be void; a notice period already running may be interrupted. Timing, probation and the type of termination require specific examination.

What does abusive termination mean?

Termination may be abusive because of its motive or circumstances, for example certain retaliatory dismissals. It generally still ends employment but may give rise to compensation. Short statutory deadlines apply to written objections and court claims.

May I stop work immediately if wages are unpaid?

Unilaterally stopping work may involve significant risks. Whether refusal to perform or immediate termination is permissible depends on the specific circumstances. Document outstanding amounts and payment demands, and have potential steps reviewed beforehand.

Can I have an incorrect employment reference corrected?

A reference must be truthful and present an accurate overall picture. Incorrect, incomplete or misleading statements may justify correction. Previous assessments, job descriptions and specific evidence of performance and conduct are useful.

Documents for your consultation

  • Employment contract, staff regulations and any collective employment agreement
  • Payslips, working-time records and holiday overview
  • Termination notice, correspondence, medical certificates and employment reference

Legal sources

Complex questions from practice

How do several different illnesses during the notice period affect the end of my employment?

With employer termination, independent illnesses may each trigger their own protected periods. A relapse of the same illness must be assessed differently. The year of service, any probation period and the timing of termination are among the decisive factors.

A timeline including the termination notice and medically evidenced incapacity helps determine the actual end date. Separately, the duration of continued wages or daily sickness benefits must be examined: extended employment does not automatically mean correspondingly longer payments.

Under what conditions may an employer count unused holiday during garden leave?

Garden leave does not automatically mean all holiday is deemed taken. The free time must allow genuine rest. The length of garden leave, holiday balance, necessary job search and other obligations must particularly be considered.

Review the garden-leave agreement and request a transparent final statement. It should separately show holiday taken, time credits and remaining claims. A blanket clause does not replace assessment of the specific circumstances.

How can a bonus entitlement be secured upon termination or departure from the company?

Whether a bonus is owed on departure depends substantially on whether it is legally classified as wages or a discretionary gratuity. Target agreements, discretion and previous payment practice are important. A qualifying-date clause may have different effects depending on classification.

Keep the employment contract, bonus rules, target assessments and previous statements. These help establish whether a full or proportional entitlement exists and which conditions the employer actually agreed.

When is a termination agreement valid despite illness, and what financial consequences must be considered?

A genuine mutually agreed termination may be permissible even during illness. However, the agreement must not merely circumvent mandatory protection against dismissal. Free consent, reciprocal concessions and the overall financial situation must be examined.

Before signing, the end date, wages, holiday and further claims should be clearly settled. Possible effects on daily sickness benefits and unemployment insurance are equally important. An offered severance payment must therefore be assessed together with the rights surrendered, not in isolation.