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Hiring in Switzerland
Salaries in Switzerland, specifically in Zurich and Geneva, are among the highest in the world, for all types of professions. In Switzerland, wages are established according to seniority. During the last decade, employers in both the public and private sectors have increasingly adopted performance-related pay systems.
Salaries are typically reviewed once a year in November or December, with pay raises taking effect on January 1 the following year.
In Switzerland, trade unions exist and about 25% of employees belong to one. When negotiating terms of an employment contract with an employee in Switzerland, it may be useful to keep the following in mind.
Employment contracts in Switzerland
Employers in Switzerland are required to provide various terms of employment in writing within 1 month of the employee’s start date, including their job function, salary, any compensation components, and working time. However, it’s best practice to put a strong employment contract in place before the employee starts working. An employment contract in Switzerland should always state the salary and any compensation amounts in Swiss francs rather than another currency.
Working hours in Switzerland
The maximum workweek in Switzerland is 45 hours for industrial workers, office personnel, technical personnel, retail employees, and white-collar workers. For all other workers, the limit is fixed at 50 hours. Certain senior managers may be exempt from these limitations. With that said, the standard working hours depend on the employer, specific job requirements, and the specific industry, but most employees work between 40 and 42 hours.
Overtime is defined as the hours exceeding the agreed upon amount of working hours stated in the employment contract. Overtime is typically paid at 125% of the employee’s normal rate or time off in lieu.
Holidays in Switzerland
There are 26 cantons (states) that make up Switzerland and each canton sets its public holidays independently. The exception is August 1, National Day, which is the only federal holiday and applicable in all cantons.
Most of the cantons celebrate the following public holidays, for which employees are given the day off:
- New Year’s Day
- Good Friday
- Easter Monday
- Ascension Day
- Whit Monday
- Swiss National Day
- Christmas Day
- St. Stephen’s Day
Vacation days in Switzerland
Law in Switzerland provides all employees with annual paid leave. The minimum amount required by law is 4 weeks per year, but this can be higher for employees under 21 years of age and over 50. The minimum length of holiday may be extended through contractual agreement.
Switzerland sick leave
During the first year of work, employees are entitled to at least 3 weeks of paid sick leave, employers can request a doctor’s certificate for an absence of more than 3 consecutive days. Employers may also choose to enter into collective sickness insurance agreements.
Maternity and paternity leave in Switzerland
Maternity leave is a legal right in Switzerland and employees are eligible for maternity pay after 5 months of continuous employment with the same employer, provided that social insurance contributions have been made for a minimum of 9 months.
New mothers will be paid at 80% of their full wage for 14 weeks after childbirth (or CHF 220 where 80% of their salary would exceed this figure). Only the canton of Geneva differs, extending this to 16 weeks and providing a higher payment (max CHF 280 where 80% of salary would exceed this figure). Mothers are also protected against dismissal during pregnancy and 16 weeks after giving birth.
Employers are obligated to make reasonable accommodations for the needs of pregnant or breastfeeding parents to ensure the continued good health of the employee and their baby. This means that they may be exempt from certain types of hazardous or physically stressful work and can be paid 80% of their salary if their employer is not able to provide alternative duties. From 8 weeks before the due date, expectant mothers are exempt from night work (starting at 8:00 p.m.). There are additional legal provisions made for breastfeeding employees to leave the workplace, and pregnant employees are also entitled to more frequent breaks.
Non-birthing parents are entitled to 2 weeks of paternity leave and receive paternity benefits for this period from the date of birth, under certain conditions. The paternity benefits payments add up to 80% of the average compensation (as determined by social security), currently a maximum of CHF 196 per day, provided the employee fulfils the statutory conditions for paternity pay. Paternity leave must be taken within 6 months following the birth.
Health insurance in Switzerland
Switzerland is known for its high-quality medical and paramedic services. The country spends more than 10% of its GDP on health, resulting in medical facilities having the latest technology, as well as one of the world’s lowest patient-to-doctor ratios.
Health insurance is compulsory for all residents in Switzerland and covers the costs of medical treatment and hospitalization. Residents are responsible for contacting insurance providers, since employers are not necessarily responsible for arranging coverage. In most cases, Switzerland insurance authorities do not accept global health insurance even if the policy states that it covers medical care in Switzerland.
Depending on the level of coverage, an annual individual health insurance package can cost up to CHF 10,000. Residents must also pay part of the cost of treatment through an annual deductible of CHF 300, and a charge of 10% of the costs over and above the excess up to a maximum of CHF 700.
Switzerland supplementary benefits
Some employers provide supplementary private insurance policies that cover some treatments that the basic insurance does not or to improve the standard of room and service in case of hospitalization.
Termination/severance in Switzerland
Probationary periods in Switzerland are typically between 1 and 3 months but cannot exceed this threshold. Dismissal during the probationary period requires 7 days’ notice.
Employers generally don’t need a specific reason to terminate an indefinite-term employment contract; however, companies must provide the reason for termination upon the employee’s request.
One month’s notice is standard for dismissals during the first year of employment. This increases to 2 months from the 2nd to the 9th year of employment and to 3 months from the 10th year onwards. An immediate termination of contract is possible if it is of mutual benefit for both the employer and the employee.
Under Swiss law, pay in lieu of notice is not permitted without the employee’s consent. An employer can, however, release an employee from performing any work (known as garden leave) during part or all of the notice period. Swiss law does not provide for statutory severance either, except for employees of 50+ years of age with at least 20 years of service.
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