Jurilo from Lawise.ai:
The employment contract is the foundation of every employment relationship in Switzerland. It governs the rights and obligations of employers and employees and is based on the provisions of the Code of Obligations (CO). In this article, you will learn what an employment contract must contain, which statutory minimum requirements apply, and which obligations arise from it for both parties.
WHAT IS AN EMPLOYMENT CONTRACT UNDER SWISS LAW?
An employment contract is an agreement between an employer and an employee, whereby the employee undertakes to perform specific work in exchange for wages. In return, the employer undertakes to pay wages and comply with statutory protection provisions.
The legal basis is in particular:
Art. 319–362 CO: Individual employment contract
Art. 330 CO: Employer's duty to inform
FORM OF EMPLOYMENT CONTRACT IN SWITZERLAND
Written, oral, or implied?
An employment contract in Switzerland can be concluded:
in writing
orally
or even implicitly (through actual conduct)
However, for evidentiary purposes, a written contract is strongly recommended.
Duty to inform according to Art. 330 CO
The employer must notify the employee in writing of the following points no later than one month after the start of employment:
Names of the contracting parties
Start of employment
Employee's function
Wages and any wage supplements
Weekly working hours
CONTENT OF AN EMPLOYMENT CONTRACT (MANDATORY INFORMATION)
Mandatory contents
The following points should be regulated in every employment contract:
Type of work
Place of work
Start of employment
Working hours (e.g., 42 hours/week)
Wages (incl. 13th month salary, if agreed)
Holiday entitlement (at least 4 weeks per year)
Notice periods
Expense regulations
Social insurance deductions
Other possible provisions
Probationary period (max. 3 months, according to Art. 335b CO)
Overtime regulations (Art. 321c CO)
Non-compete clause (Art. 340 CO)
Confidentiality obligation
Regulations for illness or accident (Art. 324a CO)
EMPLOYEE'S OBLIGATIONS UNDER THE CO
According to the Code of Obligations, the employee has the following obligations in particular:
Personal work performance (Art. 321 CO)
Duty of care and loyalty (Art. 321a CO)
Overtime work, if reasonable (Art. 321c CO)
Compliance with instructions (Art. 321d CO)
EMPLOYER'S OBLIGATIONS UNDER THE CO
The employer is obligated to:
Pay wages (Art. 322 CO)
Grant holidays (Art. 329a CO)
Fulfil duty of care (Art. 328 CO)
Issue an employment reference (Art. 330a CO)
Account for social insurance contributions
TERMINATION AND ENDING OF THE EMPLOYMENT CONTRACT
The termination of an employment relationship is governed by:
Art. 335 ff. CO: Ordinary termination
Art. 336 CO: Wrongful termination
Art. 336c CO: Protection periods
Art. 337 CO: Termination without notice
The notice period is 1 month in the first year of service, then 2 months (from the 10th year: 3 months), in each case at the end of the month.
DISTINCTION: EMPLOYMENT CONTRACT VS. MANDATE
In an employment contract, there is a subordination relationship and an obligation to pay wages. In a mandate (Art. 394 CO), the mandatary only owes an activity, not a result, and is not subject to any right of instruction.
👉 Unsure what belongs in an employment contract?
Jurilo explains contents, obligations & risks – structured and legally sound.
👉 See also: Fixed-term vs. permanent employment contract – Differences
👉 Related: Contract amendments in employment contracts – Wages & Function
👉 Basics: Bonus, commission & gratuity – legal classification
CONCLUSION
The employment contract is more than just a formal document – it governs the entire collaboration between employer and employee. Even though many provisions are regulated by law, a clearly formulated written contract is worthwhile to avoid misunderstandings. Those who know their rights and obligations are better protected in their professional daily life.
FAQ ON EMPLOYMENT CONTRACTS IN SWITZERLAND
Does an employment contract in Switzerland have to be in writing?
No, an employment contract can also be concluded orally or implicitly. However, for evidentiary purposes, a written contract is highly recommended.
What must an employment contract contain at minimum?
According to Art. 330 CO, the employer must inform in writing about the following points: names of the parties, start date, function, wages, and working hours.
How long may the probationary period last?
The statutory probationary period is a maximum of 3 months, unless otherwise agreed (Art. 335b CO).
What happens if there is no written contract?
Then the statutory provisions of the CO as well as local and industry-standard regulations apply. However, the employer must still fulfil the duty to inform according to Art. 330 CO.
May the employer unilaterally change the wages?
No. A wage change is only possible with the employee's consent or through a termination with offer of new terms.
How many holidays am I legally entitled to?
At least 4 weeks per year, for young people under 20 at least 5 weeks (Art. 329a CO).
What is a non-compete clause?
A non-compete clause prohibits the employee from working in a specific area after the end of the employment relationship. It must be agreed in writing (Art. 340 CO).
Do I have to work overtime?
Yes, if it is necessary, reasonable, and legally permissible. The employer must compensate or pay for it (Art. 321c CO).
Am I entitled to an employment reference?
Yes. You are entitled to a simple or qualified employment reference at any time (Art. 330a CO).
What happens in case of illness or accident?
The employer must continue to pay wages for a limited period, provided the employment relationship has lasted more than 3 months (Art. 324a CO). Alternatively, daily sickness benefits insurance can be taken out.
