Swiss Employment Law Overview
Swiss employment law is built on the Code of Obligations (Obligationenrecht, OR) for the individual employment contract and the Labour Act (Arbeitsgesetz, ArG) for collective working conditions. Understanding the hierarchy of norms, from the constitution down to the individual contract, helps you know what cannot be changed and what can be agreed.
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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.
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.
Federal Health Insurance Act (KVG/LAMal) · Swiss Federal Office of Public Health (FOPH/BAG) · admin.ch