Swiss Employment Law Glossary

Social Insurance and Pensions

• AHV (Old-Age Insurance), Switzerland's mandatory first-pillar state pension. Contribution: 10.6% of gross salary, split equally. Maximum pension in 2026: CHF 2,520/month.
• Pension Fund (BVG), second pillar of Swiss pensions. Mandatory from an annual salary of CHF 22,680. Employer and employee contribute jointly; rates increase with age (7–18%).
• ALV (Unemployment Insurance), provides up to 400 daily allowances (520 for over-55s) on job loss. Contribution: 2.2% of salary (1.1% employer + 1.1% employee).
• UVG/LAA (Accident Insurance), mandatory for all employees from day one. Occupational accidents fully covered by employer; non-occupational accidents covered if working at least 8 hours/week.
• Maternity Leave, 14 weeks (98 days) statutory entitlement from birth. Compensation: 80% of salary via APG, capped at CHF 220/day (2026). Paternity leave: 2 weeks since 2021.

Pay and Taxes

• Wage Certificate (Lohnausweis), mandatory annual document issued by the employer (FTA standard form). Contains gross salary, social security deductions, fringe benefits. Due by end of February.
• Withholding Tax (Quellensteuer), direct salary deduction for foreign employees without Permit C. Rate varies by canton, salary, and marital status.
• Withholding Tax Adjustment (NOV), subsequent ordinary assessment for withholding-taxed employees. Allows claiming deductions; deadline: end of March of the following year.
• 13th Month Salary, equals 1/12 of annual salary (8.33%). Not universally mandatory, but standard in Switzerland; mandatory under applicable GAV, employment contract, or established practice.
• Continued Wage Payment during illness, statutory obligation under Art. 324a OR (Berne scale). With daily sickness allowance insurance (KTG): 80% of salary for up to 720 days.

Employment Contract and Working Conditions

• Employment Contract, may be oral or written (no mandatory form). Written form strongly recommended. Cannot fall below OR statutory minimums or applicable GAV terms.
• GAV/CCT (Collective Bargaining Agreement), collective contract between employer associations and unions. Sets minimum conditions for an industry; takes precedence over individual contracts (principle of favourability).
• Probationary Period, 1 month by law, extendable to 3 months by contract. Notice period during probation: 7 days for both parties.
• Notice Periods, 1 month (year 1), 2 months (years 2–9), 3 months (from year 10). Period commences at month-end. Contractual extension is possible.
• Work Reference (Arbeitszeugnis), unconditional right at any time (Art. 330a OR). Must be complete, truthful, and positive in tone. Beware the coded language of Swiss references.
• Overtime, hours beyond contracted time. Compensation: 25% pay supplement or time off in lieu. Statutory maximum under LTr: 45 h (office/industry) or 50 h/week.
• Short-Time Work (KAE), ALV instrument for temporary work reduction. ALV covers 80% of lost wages for up to 12 months within 2 years.
• Home Office Rules, no statutory right to remote work; governed by employment contract or company policy. Employer must reimburse necessary costs. Special rules for cross-border workers (tax, social security).

Permits and Residency

• Residence Permit, Permit B (5 years / 1 year), L (short stay), G (cross-border commuter), C (permanent residence after 5/10 years). Each carries different tax treatment.
• Work Permit, EU/EFTA citizens: free movement via AFMP. Third-country nationals: subject to federal quotas and must pass the labour market priority test.

Termination, Dismissal and Protection

• Dismissal, no reason required for ordinary dismissal. Notice: 1 month (yr 1), 2 months (yr 2–9), 3 months (yr 10+). Protection periods (illness, pregnancy) void any dismissal given during them.
• Dismissal Protection, illness protection 30–180 days. Wrongful dismissal (gender, union, retaliation): up to 6 months' compensation. No reinstatement, monetary remedy only.
• Severance Pay, no general right; statutory only for 50+ with 20+ years service (2–8 months). Termination agreements are common, no legal formula, typically 1–3 months per year of service.
• Warning Letter (Abmahnung), not legally required but expected for performance/conduct dismissal. Must specify the problem, set an improvement target and warn of dismissal. Employee can add disagreement note to personnel file.
• Fixed-Term Contract, expires automatically, no notice needed. Successive renewals without justification may convert to open-ended. Early termination: only by agreement or just cause.
• Unemployment Benefit (ALV), 80% of insured wage (70% without dependents). Register on day 1 of unemployment. Maximum 260 days (400 for 55+ with 22+ contribution months).

Pay, Equality and Leave

• Minimum Wage, no federal minimum. Cantonal minimums: Geneva CHF 24.32/hr, Basel-City CHF 21/hr. GAV sector minimums apply in hospitality, construction, cleaning. Check gav.ch for your sector.
• Gender Pay Gap, unexplained gap ~8% (FSO). GlG requires LOGIB analysis for 100+ employee firms every 4 years. Reverse burden of proof in pay discrimination claims.
• Equal Pay, constitutional right (Art. 8(3)). GlG prohibits pay discrimination by gender. Underpaid wages claimable retroactively 5 years. Burden of proof shifts once discrimination is plausible.
• Parental Leave, maternity: 14 weeks at 80% (EO, capped CHF 220/day). Paternity: 2 weeks since 2021. Adoption: 2 weeks since 2023. GAV often extends beyond legal minimum.
• Part-Time Work, same rights as full-time, pro-rata. Non-occupational accident cover (UVG) from 8 hrs/week. BVG mandatory from CHF 22,680/year. Holiday pay can be included in hourly rate if itemised.

Rights, Health and Workplace

• Workplace Bullying (Mobbing), prohibited under CO Art. 328 (duty of care). Employer must investigate and act. Civil claim for damages and moral harm. Document everything with dates.
• Burnout, treated as illness for Swiss sick leave purposes. Sick leave protections apply. IV application recommended after 3–4 months incapacity. Employer duty of care extends to workload and stress prevention.
• Right to Home Office, no legal right, contractual. Cross-border workers: up to 25% home office (bilateral 2024) without tax change. Employer must provide equipment if home office is ordered.
• Whistleblowing, three-step sequence: internal → authority → media. Skipping to media removes protection. Retaliatory dismissal: wrongful, up to 6 months' compensation.
• Data Protection at Work, nDSG (2023): only necessary data. Access right within 30 days. Video surveillance of behaviour/performance: prohibited. Email monitoring: only with notice and for legitimate purpose.
• Workplace Discrimination, gender (GlG): reversed burden of proof. No comprehensive general anti-discrimination law for age/religion in private employment. Wrongful dismissal for discrimination: up to 6 months' compensation.

Applications and References

• Application Documents, Swiss CV: 2 pages, professional photo standard in German-speaking Switzerland. All past Arbeitszeugnisse required. Cover letter: 1 page, formal, targeted, no generic templates.
• Reference Letter (Referenzschreiben), voluntary supplement to the Arbeitszeugnis. International/personalised format. Always ask in advance. Verbal references: truthful but benevolent, dishonest references create liability.

Working Conditions: Time, Holidays and Night Work

• Overtime Rules, Überstunden (CO): 25% supplement or time off, can be waived for managers. Überzeit (ArG, above statutory max): 25% mandatory, cannot be waived. Time records: employer obliged, but employee should keep own records.
• Holiday Entitlement, 4 weeks minimum (5 weeks under 20). Cannot be paid out during employment. Illness during holidays: sick days not counted as holiday with medical certificate.
• Night and Sunday Work, prohibited without SECO permit. 25% supplement mandatory (ArG). Free medical exam every 2 years for 50+ nights/year. Pregnant employees exempt.
• Public Holidays, only 1 August is federal. All others are cantonal, 8 to 15 days depending on canton. Working on holidays: 25% supplement or time off. Check your GAV for your sector.

Social Insurance and Pensions

• Social Security, five pillars: AHV/IV/EO (10.6%), ALV (2.2%), UVG (occupational = employer; non-occupational = employee), BVG (pension), KVG (private health insurance). Cross-border workers: Swiss AHV/ALV/UVG, home country health.
• BVG Pension Fund (2nd Pillar), mandatory from CHF 22,680/year. Coordinated deduction: CHF 25,725/year. Contribution rates rise with age (7–18%). At retirement: pension or lump sum. Capital portable via vesting account.
• Accident Insurance (UVG), full medical coverage from day 1. Daily allowance 80% from day 3. Non-occupational: 8 hrs/week threshold. Home office: work-related accidents covered.

Special Employment Types

• Temporary Work, agency is the employer. Equal treatment after 3 months (GAV Personalverleih). Maximum 2-year assignment per user firm. Accident insurance via agency.
• Recruitment Agency, agencies cannot charge candidates (AVG). Staffing agency vs headhunter distinction. Temp workers: equal treatment, 2-year limit.
• Freelance Work, no company required below CHF 100,000 revenue. AHV registration mandatory. No ALV cover as self-employed. VAT from CHF 100,000 turnover. Bogus self-employment risk.
• Secondary Employment, generally permitted unless conflict of interest. Check contract for approval requirement. All income subject to AHV. Self-employed side income: declare separately.
• Trial Work Day, unpaid up to 2–3 days. Pay obligation from day 4 or if real productive work done. Accident insurance: employer must ensure UVG coverage from day 1.

Labour Law, Collective Agreements and Job Market

• Collective Agreement (GAV/CCT) Guide, employer associations × unions. AVE (generally binding): applies to all sector employers. Favourability principle: contract never worse than GAV. Enforcement via joint commissions (PK).
• Swiss Employment Law Overview, hierarchy: Constitution → OR/ArG → GAV → contract. No general anti-discrimination act for age/religion. No reinstatement for wrongful dismissal. Favourability principle at each level.
• Work Permit Guide, EU/EFTA: Permit B automatically with employment contract. Third countries: employer sponsorship, labour market test, quota. Cross-border: Permit G, 25% home office rule.
• Salary Negotiation, anchor with a number first (10–15% above target). Use BFS Salarium data. Annual reviews: Q4. Job change: 10–20% increase realistic. Salary cuts require employee consent.
• Swiss Job Market 2026, median CHF 7,800/month. Unemployment ~2.3–2.5%. Shortage: IT, healthcare, engineering. Portals: jobs.ch, jobscout24.ch, LinkedIn. Spontaneous applications well-received.
• Entering the Swiss Labour Market, 2-page CV, photo (German CH), all diplomas and references. 4–8 week hiring process. 1–3 interview rounds. Swiss interviewers value precision and concrete examples.
• Short-Time Work (KAE), employer request; ALV pays 80% of lost hours. Max 24 months. Employees cannot refuse if contract allows. Income: 85–95% of normal salary in practice.

Disability, Pregnancy and Workplace Safety

• Disability Insurance (IV/AI), third pillar of Swiss social insurance. Full IV pension at 70%+ incapacity. Early intervention mandatory, reintegration before pension. Apply early: IV process takes 12–24 months on average.
• Pregnancy and Maternity Protection, dismissal during pregnancy and 16 weeks post-birth is void (Sperrfrist). Dangerous work assignments must be adapted. Maternity benefit: 80% of salary (APG), capped at CHF 220/day for 98 days.
• Workplace Health and Safety (ArG/UVG), employer responsible for all physical and psychological safety. SUVA enforces ArG. Stress, burnout, and harassment trigger employer duty of care under Art. 328 CO.

Payroll, Insolvency and Debt Enforcement

• Payroll and Wage Slip, monthly slip must show gross pay, all social deductions (AHV, ALV, NBU, LPP), net salary. Withholding tax separately if applicable. Keep all wage slips, useful for ALV, IV, and tax filings.
• Employer Insolvency, ALV insolvency benefit (Insolvenzentschädigung) covers up to 4 unpaid wage months. Register at RAV immediately. Preferential creditor status for wages in bankruptcy proceedings.
• Wage Garnishment (Lohnpfändung), SchKG protects a minimum subsistence amount, employer must pay it even under garnishment order. Employer must comply with garnishment; ignoring it creates personal liability.

Permits, Equal Treatment and Expat Rights

• Residence Permit Guide, Permit B (5 yr EU/1 yr non-EU), L (short stay up to 1 yr), G (cross-border), C (permanent after 5/10 yr). Permit type determines tax (withholding vs ordinary) and social security rights.
• Equal Treatment, GlG prohibits gender discrimination in hiring, pay, promotion, and dismissal. Indirect discrimination also covered. Employer must prove pay differences are objectively justified, reverse burden of proof.
• Expat Rights in Switzerland, EU/EFTA: full labour rights from day 1 under AFMP. Third-country nationals: same labour rights once permitted but permit conditions restrict mobility. Posted workers: Swiss salary minimums apply under EntG.

Leave, Works Councils and Trade Unions

• Special Leave, no universal statutory rule beyond the 3-day family death minimum. Most entitlements come from GAV or employment contract: marriage (1–3 days), birth (3 days paternity since 2021), moving (1 day). Check your GAV.
• Works Council (Personalkommission), Swiss law grants employees the right to form a Personalkommission (OR Art. 321a). Weaker than German Betriebsrat, information and consultation rights, no co-determination. GAV may extend rights.
• Trade Union Rights, freedom of association guaranteed (BV Art. 28). Anti-union dismissal is wrongful, up to 6 months' compensation. Union reps entitled to time off for union activities under applicable GAV.

Career, Training, Mobility and Salary

• Further Training and Education, no general statutory right to paid study leave. Cantons vary, some have education leave laws (e.g. Berne). GAV may grant 3–5 days/year. Employer-funded training often comes with repayment clauses (typical: 1–3 years).
• Changing Employers, negotiate new contract before resigning. BVG capital transfers to new pension fund within 90 days. Non-compete clause: valid for max 3 years, requires legitimate interest and compensation (jurisprudence). Check references policy.
• Salary Structure, base salary + 13th month + variable bonus + fringe benefits. 13th month: standard in Switzerland (8.33% addition to annual salary). Bonus: often discretionary, check contract wording carefully for obligation vs discretion.
• Distance and Commuting, no right to home office from distance alone. Commuting costs: deductible for tax (cantonal rules). Cross-border workers: Permit G, max 25% home office since 2024 bilateral agreement without changing tax/social security status.
• Probation Period Guide, 1 month by law, extendable to 3 months by written contract. 7-day notice each side. Illness during probation pauses the clock. Dismissal during probation: no reason needed, no protection period applies.
• Job Change Guide, resign only after new contract is signed. Notice period runs from month-end. Gardening leave: possible if employer pays full salary. All accrued holiday must be taken or paid out at end of employment.
• Foreign Qualifications Recognition, regulated professions (medicine, law, engineering): formal recognition required via SERI or cantonal authorities. Unregulated professions: employers decide individually. EU qualifications: mutual recognition under AFMP. Non-EU: case-by-case.