What do I need to know when employing staff in Switzerland?

Hiring staff is a crucial step that requires a serious approach. When you hire, you make a significant commitment. It’s essential to understand the regulations surrounding the employment of staff, both to protect your business and to guarantee employees’ rights to fair working relationships.

Here are some key points:

Employment contract :

Although under Swiss law, an oral employment contract is valid, make sure that all your employees have a written employment contract clearly defining the terms and conditions of employment, including job position, working hours, remuneration, social security contributions, vacations, obligations in the event of illness and notice periods, if necessary supplemented by a schedule of conditions. This provides tangible evidence in the event of disputes, and also helps to avoid them. If you are subject to a collective bargaining agreement, make sure you meet the terms and conditions. Irrespective of stricter standards, CLAs often stipulate that individual employment contracts must be in writing.

In the catering industry, for example, the CLA stipulates a minimum wage, as does the CLA for domestic workers. If the employer fails to comply with the thresholds, he risks being condemned by the Tribunal des prudhommes (industrial tribunal).

Common disputes:

Be aware of the frequent causes of disputes between employers and employees, particularly when it comes to dismissals, sexual and/or psychological harassment (mobbing), unpaid wages, and health and safety at work.

For example, an employee could contest a dismissal if he or she believes that the reason given by the employer is false. The employer invokes a job cut for economic reasons, but actually hires another employee with a lower salary.

Social security system:

As an employer, you must comply with social insurance schemes, including old-age, survivors’ and disability benefits (the so-called three-pillar system), insurance coverage in the event of illness and accident, compensation for loss of earnings in the event of service and maternity, unemployment insurance, and family allowances.

When must an employee bring in a medical certificate? After the 3rd day of illness.

Labor standards:

Working hours and rest periods are part of employee health protection, as they help prevent overwork and fatigue-related accidents. They also guarantee workers a balance between their professional and private lives.

Among other things, the Labour Act (LTr) lays down the minimum rest periods to which workers are entitled, and the way in which working hours must be arranged. You’ll also find information on compensation for overtime work.

An employee must work overtime if the company’s situation so requires. But he or she is entitled to equivalent time off or overtime pay.

Work permits :

In Switzerland, the employment of foreign workers is subject to strict work permit rules. These rules are designed to ensure that foreign nationals work legally in the country, that they enjoy fair working conditions, and that employers comply with their legal obligations.

It should be noted that nationals of a European Community country automatically obtain a work permit in Switzerland (B permit) as soon as they can demonstrate the existence of a work commitment. For non-European employees, on the other hand, the conditions for obtaining a work permit in Switzerland are very strict and severe.

Work permits are generally divided into three main categories:

L permit:

This is a short-term permit issued to foreign nationals who come to Switzerland for a limited period, usually for temporary projects, specific assignments or short training courses. L permit holders are not authorized to stay in Switzerland long-term.

B permit:

Allows foreign nationals to work in Switzerland for an extended period, usually up to five years. However, it is important to note that B permit holders are generally tied to a specific employer and cannot work for other employers without authorization.

Permit C:

This is a permanent residence permit that allows foreign nationals to live and work in Switzerland independently, without restrictions linked to a specific employer. It is generally issued after 5 years’ residence in Switzerland.

Both employers and employees risk criminal sanctions if they maintain an employment relationship without a permit.

Finally, to ensure that you meet all your legal obligations, or to obtain further information, we strongly recommend that you consult a lawyer specializing in employment law.