With a stable economy, Swiss unemployment rate is one of the lowest in the world, standing at 3.7 percent in January 2017, with average unemployment typically lower in German-speaking Switzerland (3.1 percent) than in French and Italian-speaking Swiss cantons (5 percent).
In short, in Switzerland, salaries are amongst the highest in the world, the holiday per year is four weeks long, the social security benefits are excellent and the quality of life is among the highest in the world. However, the labor market is small, competition for jobs is high and for those outside EU only a limited number of jobs are available.
The employment Law governs the employment field in Switzerland for residents and for foreign nationals. Any foreign individual is allowed to work in Switzerland only after signing the Swiss individual contract of employment. Compared to the laws of most European countries, Swiss employment law is quite liberal, particularly in relation to terminations of employment contracts.
Employment contracts types
Individual contract of employment is one of the most popular contracts signed in Switzerland, same as worldwide. A normal contract of employment is a contract that with fixed terms and conditions in regards to the conclusion, content and notice of termination.
Collective labor contracts are also available in Switzerland and they are also known as CLAS. Is an agreement between management (on behalf of the company) and trade unions (on behalf of employees) which regulates the terms and conditions of employees in their workplace, their duties and the duties of the employer.
Key points of employment in Switzerland
1. The probation period in Switzerland is 1 month. If agreed by collective or individual contract, a longer period can be considered, but should not exceed 3 months.
2. The notice period in Switzerland are seven days’ notice for the probation period, one month notice for the first year of employment, two months’ notice from the second to the ninth year of employment and three months from the ninth year of employment.
3. The Swiss employment law prohibits employers from terminating employment relationships during the periods which the employee is prevented from performing work fully or partially by no fault of his or her own, during pregnancy and during the 16 weeks following the lying-in of an employee, during the employee’s participation at a foreign aid service assignment abroad ordered by the competent federal authority and during the employee’s performance of compulsory Swiss military service.
4. The amount of annual leave required by Swiss law is four weeks for workers and apprentices over 20 years old and five weeks for workers and apprentices up to 20 years old. Maternity leave entitlement is for up to 98 days (14 weeks). Mothers are paid 80% of their wages in the form of a daily allowance, but no more than CHF 196 per day. Employees are generally entitled to paid sick leave. The days allowed depend on the years of service and on the cantonal law.
5. In Switzerland, duty of fidelity refers to a duty of the employee to uphold the justified interests of an employer to the extent of due fidelity, known also as a duty to desist.
If you want to work or hire people for your business in Switzerland you can contact our consultants familiarized with the Employment law, in order for you to receive the best employment advices.