Swiss employment contract explained: what expats need to know
A Swiss employment contract ("contrat de travail" in French, "Arbeitsvertrag" in German) is governed by the Swiss Code of Obligations (CO), not by the Labour Code of a neighbouring country. Swiss labour law is more employer-friendly than French law but more protective than US at-will employment. The contract can be oral, but almost all professional positions use written contracts. Understanding the mandatory clauses, the negotiable elements, and the conventions that differ from other countries is essential before signing.
Switzerland has no general minimum wage at the federal level (some cantons have introduced cantonal minima: Geneva CHF 24.00/h, Zurich CHF 23.90/h as of 2026). Employment is heavily regulated by the CO (Code des obligations) and, for specific sectors, by collective labour agreements (CCT/GAV) that override the CO minimums in favour of employees. If your sector has a CCT, its provisions are mandatory and take precedence over your individual contract where they provide better conditions.
- Trial period: maximum 3 months, 7 days notice. Contractually fixable at 1 month (most common) or waived entirely.
- Notice period: 1 month during year 1, 2 months in years 2–9, 3 months from year 10 onwards (can be extended by contract).
- Annual leave: 4 weeks minimum (20 days). Until age 20: 5 weeks. Many contracts offer 5 weeks standard.
- 13th month: not legally mandated but contractually standard in most sectors; check your contract explicitly.
- Working hours: 45h/week (offices, commerce) or 50h/week (industry) maximum under LTr. Most professional contracts state 40–42h.
- Non-compete clause: enforceable in Switzerland, but only for up to 3 years and only where specific customer or trade secret risk exists.
The trial period (période d'essai)
Swiss law allows a trial period of up to 3 months during which either party can terminate the contract with just 7 days' notice. In practice, most professional contracts set the trial period at 3 months with a 7-day notice period during that time. After the trial period, standard notice periods apply: typically 1 month in the first year, increasing with seniority. Some employers extend the trial period to 3 months via contract; longer than 3 months is not legally valid even if written into the contract.
During the trial period, sick days are handled differently: absence due to illness is compensated, but the trial period is extended by the number of sick days. A 3-month trial with 10 sick days becomes a 3-month + 10-day trial.
Notice periods in Switzerland
Swiss notice periods are set by law (CO Art. 335c) as minimums and can be extended by agreement but not shortened (except during the trial period). The standard progression: Year 1: 1 month notice. Years 2–9: 2 months notice. Year 10+: 3 months notice. These periods are always counted to the end of the calendar month: a notice given on the 15th of June takes effect on July 31st (in year 1), not 30 days from the 15th.
For managerial and executive positions, 3–6 months notice is commonly specified in the contract from the start. Non-compete clauses (clause de non-concurrence) are enforceable in Switzerland for periods up to 3 years if they are proportionate in scope, but they require financial compensation (at least partial salary continuation) to be legally binding in some interpretations.
What to check before signing
Beyond the standard clauses, these elements are commonly overlooked by expat professionals:
- Workplace location clause: Does the contract specify your workplace? Swiss employers can reassign you to a different location within limits. If mobility is a concern, specify "primary workplace: Geneva" in the contract.
- Overtime clause: Is overtime compensated? How? Swiss law says management-level employees (cadres) typically do not receive overtime pay; check whether your contract classifies you as a cadre (this affects overtime, working hours, and other protections).
- Variable pay structure: If a bonus is mentioned, is it discretionary or formula-based? A "discretionary bonus" has no legal enforceability. A "performance bonus calculated as X% of base salary if KPIs are met" is contractually binding if the KPIs are met.
- Intellectual property: Swiss contracts typically include an IP assignment clause covering work created in the scope of employment. For tech, creative, and research roles, check whether personal projects or prior IP are excluded.
Collective labour agreements (CCT/GAV)
Many Swiss sectors are covered by collective labour agreements negotiated between employer associations and trade unions. If your sector has a CCT, its provisions on minimum salary, working hours, annual leave, and notice periods are mandatory even if not written into your individual contract. Sectors with significant CCT coverage include: construction (LMT), hospitality (L-GAV), watch manufacturing, metalworking (CMR), and retail. Finance, IT, and pharmaceutical sectors are less systematically covered, though some large employers have company-level agreements. The CCT always provides a floor, not a ceiling: your individual contract can improve on CCT terms but cannot fall below them.
Frequently asked questions
Does Switzerland have a minimum wage?
There is no federal minimum wage in Switzerland. Several cantons have introduced cantonal minima (Geneva: CHF 24.00/h, Vaud: CHF 21.09/h as of 2025–2026). Collective labour agreements set sector-specific minimums that may be higher.
Can a Swiss employer change my contract unilaterally?
Not without your agreement for significant changes (salary, role, location). An employer can propose modifications, but if you refuse, they must either maintain your current terms or terminate your contract with proper notice. Constructive dismissal (forcing a resignation by making conditions intolerable) is recognised under Swiss law.
How long is the notice period if I want to resign?
Same as for employer-initiated termination: 1 month in year 1, 2 months in years 2–9, 3 months from year 10. Notice must be given before month-end to take effect at the end of the following calendar month.