Fixed-Term Employment Contract in Switzerland

Automatic Expiry and Notice

A fixed-term contract ends on the agreed date without notice being required (Art. 334 CO). No probation period applies unless explicitly agreed. If both parties continue working beyond the end date without a new agreement, the contract is deemed continued as an open-ended employment relationship. Notice periods for fixed-term contracts during the probation period (if agreed) are the same as for open-ended: 7 days.

Successive Renewals and Conversion

Swiss case law (Federal Supreme Court) and doctrine hold that repeatedly renewing a fixed-term contract creates a presumption that it is effectively an open-ended contract. There is no fixed maximum number of renewals, but renewal without objective justification (seasonal work, project-based work, replacement) may be challenged. If the contract is deemed open-ended, dismissal requires the proper notice periods and protection rules. Employees in this situation should seek advice from a union or cantonal labour office.

Early Termination

A fixed-term contract cannot be terminated early by either party unless: the contract explicitly provides for early termination, both parties agree (mutual termination), or there is just cause for summary dismissal. Unlawful early termination by the employer entitles the employee to wages for the remaining contract duration (minus amounts earned elsewhere or in bad faith withheld). Employees who leave early must compensate the employer for the remaining term.

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Frequently Asked Questions

Can my employer renew a fixed-term contract indefinitely?

Not without risk. Repeated renewals without objective justification can lead a court to reclassify the relationship as an open-ended contract, with all the associated protections and notice requirements applying retroactively.

Are fixed-term workers entitled to holiday pay?

Yes. Fixed-term employees have the same holiday entitlement as permanent employees, pro-rated to the contract duration. Holidays not taken before the end of the contract must be paid out.

What social insurance contributions apply to fixed-term contracts?

The same as open-ended contracts: AHV, ALV, UVG, and BVG (if the annual salary reaches CHF 22,680). Short fixed-term contracts below this threshold do not trigger BVG but still require AHV/ALV/UVG.