Swiss employment law, governed primarily by the Code of Obligations (CO, art. 319 et seq.) and by various federal acts (Labour Act, Gender Equality Act, Act on the Participation of Workers), establishes the framework for individual and collective labour relations. Switzerland's legal system offers significant contractual flexibility alongside mandatory protections for employees, particularly regarding dismissal, sick leave, harassment and working conditions. PBM Avocats advises and represents both employees and employers across all employment law matters in Geneva and Lausanne.
The Employment Contract: Formation and Essential Terms
An employment contract under Swiss law (art. 319 et seq. CO) is formed as soon as one party undertakes to work for another in return for remuneration. No particular form is required for its validity; oral contracts are binding. However, certain clauses — such as non-competition agreements (art. 340 CO) and fixed-term contracts — require written form to be enforceable. In practice, employers typically use written agreements to specify the parties' rights and obligations, including salary, working hours, holiday entitlement, notice periods and any bonus arrangements.
Collective labour agreements (conventions collectives de travail, CCT) and standard employment contracts (contrats-types de travail, CTT) supplement or supersede individual contractual arrangements in many sectors. PBM Avocats advises on the applicable collective agreement in your sector and on the extent to which it modifies or restricts individual contractual freedom.
Dismissal Law: Notice, Immediate Termination and Protection
Either party may ordinarily terminate an indefinite employment contract by giving the applicable notice period (art. 335 et seq. CO). Statutory notice periods increase with length of service: one month in the first year of service, two months from the second to the ninth year, and three months from the tenth year. Longer contractual notice periods are permissible. During the notice period, the employee remains entitled to salary and benefits.
Immediate termination for good cause (art. 337 CO) is reserved for situations where the circumstances make continuation of the employment relationship unreasonable. Both the employer and employee may invoke good cause, which Swiss courts assess strictly. If immediate termination is unjustified, the terminating party owes compensation equal to the salary for the remaining notice period and, in the case of the employer, additional compensation of up to six months' salary.
Special protections apply during periods of illness, accident, pregnancy, military service and certain other situations (art. 336c and 336d CO). Notice given during a protected period is null and void; the notice period restarts once the protection expires. PBM Avocats advises employees on their entitlements and employers on risk management in these sensitive situations.
Salary Claims, Overtime and Holiday Entitlement
Employees are entitled to the agreed salary and to any additional remuneration required by law or collective agreement, including a 13th month salary if contractually provided and a bonus where it has become a customary entitlement. Overtime (art. 321c CO) beyond ordinary working hours must be compensated with 1.25 times the regular hourly rate unless an equivalent period of rest is granted by agreement.
The statutory minimum holiday entitlement is four weeks per year (five weeks for employees under 20). Collective agreements and individual contracts often provide longer entitlements. Unused holidays must be compensated in cash upon termination of the contract if they cannot be taken during the notice period. PBM Avocats represents employees in recovering unpaid salary and outstanding entitlements, including through summary proceedings where urgent.
Gender Equality, Harassment and Discrimination
The Federal Act on Gender Equality (GEA) prohibits discrimination on grounds of sex in hiring, assignment of duties, working conditions, pay, training and dismissal. Wage discrimination claims are subject to a reversed burden of proof: the employee need only show facts that make discrimination plausible; the employer must then demonstrate that there is no discrimination or that it is objectively justified. The GEA also covers sexual harassment at the workplace, imposing an obligation on the employer to take preventive and reactive measures.
PBM Avocats advises employees who are victims of discrimination or harassment and assists employers in implementing compliant internal policies, conducting investigations and responding to administrative inspections by the cantonal labour authority (Inspection cantonale du travail).
Frequently Asked Questions about Employment Law
What constitutes wrongful dismissal under Swiss law?
Under art. 336 of the Code of Obligations (CO), a notice of termination is wrongful if it is given for certain prohibited reasons, including: because the other party exercises a constitutional right (freedom of expression, religion, association); during an affiliation to a trade union; because the party has asserted in good faith claims arising from the employment relationship; or for reasons connected to pregnancy, civil status or participation in military service. In cases of wrongful dismissal, the employee may claim compensation of up to six months' salary (art. 336a CO), in addition to any outstanding entitlements.
What protection does a worker have against dismissal during sick leave?
Swiss law provides for a prohibition on dismissal during certain periods of inability to work. Under art. 336c CO, after completion of the probationary period, the employer may not give notice of termination during illness or accident incapacity for a period of 30 days in the first year of service, 90 days from the second to fifth years of service inclusive, and 180 days from the sixth year of service. A notice given during a protected period is null and void; a new notice period must start from the end of the protected period. The employee may also be entitled to continued salary payment under art. 324a CO.
What is workplace harassment (mobbing) under Swiss law and what recourse is available?
Workplace harassment (mobbing) is not defined by a specific provision of Swiss law but falls under the employer's duty to protect employees' personality (art. 328 CO) and the provisions of the Gender Equality Act where harassment has a discriminatory dimension. A victim of harassment may demand that the employer take protective measures, claim damages and reparation for moral injury under art. 49 CO, and in extreme cases terminate the contract for good cause with immediate effect (art. 337 CO) while claiming compensation. Administrative remedies before cantonal labour inspectorates are also available.
How is the employment contract terminated by mutual agreement?
An employment contract may be terminated at any time by mutual agreement (exit agreement / accord de résiliation), regardless of the applicable notice period. The agreement must be genuine and freely consented to: a termination obtained under duress or following harassment may be challenged. The exit agreement typically covers the departure date, outstanding salary, holidays and overtime, bonus entitlements, non-competition clauses, references and any severance payment. PBM Avocats reviews exit agreements to ensure they are balanced and that the employee does not inadvertently waive legitimate claims.
Does Swiss law recognise collective redundancies?
Yes. Art. 335d et seq. CO, which implement the requirements of the European Directive on collective redundancies (via bilateral agreements), impose obligations on employers planning to dismiss a significant number of employees (at least 10 in firms with 20–99 employees, 10% in firms with 100–299 employees, or at least 30 in firms with 300 or more employees) within 30 days. The employer must consult employee representatives in good faith, notify the cantonal employment office, and comply with a 30-day waiting period before the dismissals take effect. Failure to comply may give rise to claims for damages.