A poorly worded employment contract can be expensive for Swiss companies – especially for SMEs, HR managers or fiduciaries who deal with contracts on a daily basis. In practice, the same mistakes keep occurring, which can easily be avoided – if you know what to look out for.
Here are the three most common pitfalls in Swiss employment contracts – including tips on how to avoid them:
1. Incorrect Notice Periods
What many get wrong:
In many employment contracts, notice periods are incorrectly stated, especially during the probationary period. Often it says:
"During the probationary period, either party can terminate with 7 days' notice. The probationary period is 6 months."
❌ The problem:
According to Art. 335b CO, the probationary period may last a maximum of 3 months. A longer probationary period is invalid, which can lead to misunderstandings and disputes.
✅ The correct approach:
The contract should clearly state:
"The probationary period is 3 months. During this time, the employment relationship can be terminated with 7 days' notice."
2. Unclear or Impermissible Overtime Regulations
Typical mistake:
Many contracts contain blanket statements such as:
"Overtime is included in the salary."
❌ The problem:
According to Art. 321c CO, overtime must be compensated or paid – provided it is ordered or necessary and reasonable for the employee. A blanket compensation is not always permissible, especially at lower salary levels.
✅ Better is:
"Overtime is only worked with prior approval from the supervisor and can be compensated through time off of equal duration or through wages."
And: Regular time tracking is mandatory.
3. Missing Reference to Collective Labour Agreements (CLA)
Often overlooked:
In certain industries, collective labour agreements apply (e.g. construction, hospitality, cleaning), but the individual employment contract lacks any reference to them.
❌ Risk:
If a CLA takes precedence, the individual contract is not valid on certain points. This can affect salaries, holidays or notice periods, for example – and become expensive during inspections.
✅ What to do:
Add to the contract:
"The collective labour agreement for the cleaning industry in its currently valid version applies."
And additionally attach all relevant regulations and appendices (e.g. expenses, data protection).
Conclusion: Avoid Mistakes with Jurilo
An incorrect contract can lead to high costs, warnings or lawsuits – and often a few wrong formulations are enough.
Jurilo helps you correctly review employment contracts, answer questions immediately and reduce legal risks. The answers are reviewed by lawyers, immediately available and optimised for SMEs, HR, fiduciaries and legal professionals.
Try it free now.
Ask a question: "Is my notice period correct?" – and get an answer immediately.
