Swiss Employment Law Overview

The Hierarchy of Norms

Swiss labour law follows a strict hierarchy of norms: (1) Federal Constitution (fundamental rights, cannot be overridden), (2) Statute (OR, ArG, mandatory provisions), (3) Collective agreement (GAV/CCT, may improve on statute, not worsen it), (4) Individual employment contract (may improve on GAV, not fall below it), (5) Employer policy and instructions. The principle of favourability: at each level, the employee may only be treated as well as or better than the level above, never worse. This means a contract clause giving fewer holidays than the applicable GAV is automatically void.

Key Employee Rights Under Swiss Law

Core rights every employee has by law: right to salary (even without working if employer has no work), 4 weeks minimum holiday, protection from unfair dismissal (compensation not reinstatement), sick leave protection periods, right to a work reference (Arbeitszeugnis), right to equal pay (GlG), freedom of association (join a union, cannot be dismissed for it), data protection rights (nDSG), right to employee consultation before major restructuring (Mitwirkungsgesetz).

How Switzerland Differs from the EU

Key differences from EU employment law: no general anti-discrimination employment act (age, religion, ethnic origin in private sector are not explicitly protected beyond constitutional principles), no reinstatement for wrongful dismissal (only money), no mandatory employee representatives in companies below certain sizes, minimum wages are cantonal/GAV (no federal minimum), no general right to home office, and no legally required consultation process for individual dismissals (collective redundancy: some process required). Conversely, Switzerland has strong health protection, generous sick leave insurance and reliable enforcement through courts.

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

What is the Code of Obligations and why does it matter?

The Code of Obligations (Obligationenrecht, OR) is the main Swiss private law code. It governs employment contracts, including formation, duration, rights and obligations of both parties, and termination. Articles 319–362 OR deal specifically with individual employment contracts.

Is it easy to dismiss an employee in Switzerland?

For ordinary dismissal: relatively easy, notice must be given, but no reason required. For dismissal during protection periods (illness, pregnancy) or for wrongful reasons: not without legal risk. Switzerland is seen as more employer-friendly than France or Germany, but employees have meaningful compensation rights.

What is the difference between the OR and the ArG?

The Code of Obligations (OR) governs the individual employment contract, private law between employer and employee. The Labour Act (ArG) sets public law standards for working conditions: maximum hours, rest periods, health and safety, night work, child labour. Both apply simultaneously. The ArG is enforced by public authorities (SECO, cantonal inspectorates); the OR is enforced through civil courts.

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.

How do Swiss notice periods work for employment contracts?

Under Swiss law (Code of Obligations, Art. 335c), notice periods during probation (default 1 month, up to 3 months by agreement) are 7 days. After probation, statutory notice periods are: 1 month during the first year, 2 months in years 2 to 9, and 3 months from year 10 onwards. Notice must be given in writing by end of calendar month (or end of the agreed notice period month). Contractual or GAV notice periods can be longer but cannot be shorter than statutory minimums. Protected periods exist (illness, accident, pregnancy) during which termination is suspended or prohibited.