Swiss Labor Law – Selected Aspects (Part 1)

Labor Law: An Overview for Employees and Employers

Swiss labor law is characterized by a balanced relationship between employees and employers and a strong legal foundation that protects the rights and obligations of both parties. This article provides an overview of selected fundamental aspects of employment law in Switzerland.

Employment Contract

Although the oral form is permitted, most employment contracts between employers and employees are concluded in writing. The legal rules are set forth in Art. 319 et seq. CO. Provided that the minimum legal provisions are complied with, there is a great deal of room for maneuver. However, certain provisions must be agreed in writing. These are, for example, a deviating overtime or probationary period regulation, other notice periods or the agreement of a non-competition clause.

An employment contract should therefore contain at least the following points:

• Name of the employee and the employer
• Beginning of the employment relationship
• Function or position of the employee
• Wage and wage supplements
• Regular weekly working hours (full or part-time)
• Special regulations (e.g. overtime regulations, non-competition clause)
• End of the employment relationship in the case of fixed-term contracts

Working hours

Working hours in Switzerland are generally 45 hours per week. Working hours must be fixed or at least determinable. The basis for its determination is the individual, standard or collective employment contract or the company practice. In particular, provisions on the maximum weekly working time, on day, evening, night and Sunday work as well as on days off and breaks must be observed. The legal basis for this can be found in the Labor Law (ArG) and the associated ordinances.

Overtime

Overtime is defined as hours worked in excess of the agreed or customary working hours or the hours stipulated in the standard or collective employment contract. Overtime shall be compensated either by the granting of time off of at least the same duration (compensation), provided that both parties agree thereto, or by wages, including a supplement of 25% (also at the unilateral request of one party). Deviations from this regulation require prior written agreement between the parties.

Extra time

Overtime must be distinguished from overtime. The Labor Code stipulates a maximum weekly working time of 45 hours for employees in industrial companies, office personnel, technical and other employees as well as sales personnel in large retail companies, and 50 hours for other employees. In certain exceptional cases, these maximum working hours may be exceeded to a certain extent. Such working time in excess of the maximum working time is referred to in the Labor Code as overtime.

Overtime is generally compensated in the same way as overtime. This wage regulation, unlike that for overtime, is mandatory and grants the employee a corresponding claim against the employer, i.e. this regulation cannot be waived by an agreement.