Employment Contract in Switzerland: Contents and Rights

Form and Conclusion

Swiss employment contracts are generally form-free – they may be concluded orally or by implied conduct (Art. 320 OR). A written contract is strongly recommended to prevent misunderstandings. Exceptions: fixed-term contracts and apprenticeship contracts must be in writing. Without a written contract, statutory rules (OR) and any applicable GAV apply.

Mandatory and Common Clauses

A complete employment contract should include: parties' names and addresses, employment start date, job description and work location, salary (base, allowances, 13th month), working hours, vacation entitlement, probationary period (duration and notice), notice periods, GAV reference if applicable, data protection and confidentiality. Clauses that fall below statutory minimums (e.g., fewer than 4 weeks' vacation) are void.

Statutory Minimums

The employment contract can never fall below statutory minimums. Key minimums under OR: 4 weeks' vacation (Art. 329a), 1–3 months' notice depending on years of service (Art. 335c), 1-month probation period (modifiable), sick leave wage continuation (Art. 324a). The applicable GAV takes precedence over statutory minimums where it provides better terms.

Contract Changes and Disputes

Contract changes generally require both parties' agreement. Unilateral changes (salary cut, role change) are only possible with termination and a new contract offer. Disputes go to the labour court (Arbeitsgericht / tribunal des prud'hommes). First-instance proceedings are free of charge.

Context on the Swiss job market helps frame any career decision in Switzerland. Our gross-to-net salary guide shows what Swiss gross salaries look like after AVS, LPP and tax deductions. The salary negotiation guide covers how to use market data in offer discussions and which arguments work with Swiss recruiters. Our guide to working in Switzerland as a foreigner covers entry conditions, permit categories and practical relocation steps. The work permit guide explains B, C, G and L permit categories and processing timelines. For cross-sector salary benchmarks, the Switzerland salary guide covers all major roles and cities.

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Frequently Asked Questions

Must an employment contract be written in Switzerland?

No, oral contracts are generally valid. But written form is strongly recommended. Fixed-term contracts and apprenticeship contracts must be written.

What if the contract has no vacation clause?

The statutory minimum of 4 weeks (20 working days) per year applies (Art. 329a OR). The applicable GAV may provide higher entitlements.

Can the employer unilaterally cut my salary?

No. A salary cut requires either employee consent or termination of the current contract combined with a new contract offer at the changed terms.

Is a non-compete clause enforceable in Switzerland?

Yes, under conditions set by CO Art. 340. To be enforceable, a non-compete clause must be: written, limited to a maximum of 3 years, geographically restricted to a specific area, and limited to activities where the employee genuinely had access to confidential client relationships or trade secrets. A clause that is unlimited in scope, duration, or geography is void or reducible by a judge. Courts regularly reduce disproportionate non-compete clauses to what is objectively necessary.

What is the 13th month salary in Switzerland?

The 13th month salary in Switzerland refers to an additional monthly salary paid once a year, typically in December. It is included in annual salary benchmarks as standard: when a Swiss employer quotes CHF 120,000 per year, this normally means 13 monthly payments of approximately CHF 9,231 each, not 12 payments of CHF 10,000. The 13th month is governed by the employment contract or collective agreement (GAV), not by statute. It is subject to social contributions (AHV/ALV) and income tax. Always clarify with a prospective employer whether a quoted annual figure includes or excludes the 13th month.