Employment Contract Switzerland: Key Clauses (2026)

Swiss employment contracts are governed by Articles 319–362 of the Code of Obligations (OR). The law does not require a written contract — employment can arise verbally — but written contracts are standard and essential for clarity. This guide covers what Swiss law requires in an employment contract Switzerland, what the key clauses must say, and the non-negotiable elements that protect both employer and employee.

Written vs Verbal Contracts

Swiss law does not mandate a written employment contract for most positions. A verbal agreement is legally binding. However:

If no written contract exists, the employee’s stated version of the terms is generally presumed correct in disputes
Certain clauses (non-compete, fixed-term agreements, specific working conditions) should always be in writing to be enforceable
If any party requests a written summary of key terms, the other must provide it (Art. 330b OR)

In practice, all Swiss employment contracts should be in writing. For foreign employees requiring work permits, a written contract is mandatory for the permit application. See our work permit Switzerland guide for full documentation requirements.

Required and Recommended Contract Elements

Swiss law requires the employer to inform the employee in writing about:

Name and address of both parties
Start date
Job description and role
Salary (amount, currency, payment interval)
Working hours (weekly)
Holiday entitlement

Additional terms should be documented:

Probation period (length, notice during probation)
Notice periods
Place of work
Collective agreement applicable (if any)
Any special provisions (non-compete, confidentiality, intellectual property assignment)

Probation Period

Swiss law allows a probation period of up to 3 months (Art. 335b OR). During probation:

Either party can terminate with 7 days’ notice (no end-of-month requirement)
Protected period rules (illness, accident, pregnancy) do not apply to prevent termination during probation — notice still runs during a sick period

By agreement or collective labour agreement (GAV), probation can be extended to a maximum of 6 months.

If no probation is specified in the contract, a default probation of 1 month applies.

Salary

Swiss law sets no statutory national minimum wage (except for cantons that have introduced cantonal minimums, and GAV-covered industries with negotiated minimums).

Payment: Monthly in arrears is standard. Salary must be paid in CHF unless the employee works primarily abroad.

13th month salary: Not legally mandated in the OR, but extremely common in Switzerland and required by many GAVs. If a 13th month is agreed (explicitly or through practice), it becomes a contractual entitlement — employers cannot unilaterally withdraw it.

Bonus: Discretionary bonuses (Gratifikation) must be distinguished from contractual bonuses (Bonus). A discretionary Gratifikation can be withheld or reduced by the employer; a contractual Bonus (linked to performance metrics or paid consistently) becomes an entitlement.

For full payroll obligations — including social insurance deductions — see our accounting Switzerland overview.

Working Hours

The maximum statutory working week in Switzerland:

45 hours/week for office workers, technical employees, and retail
50 hours/week for other categories

Overtime is compensated either by time-off in lieu or a 25% salary premium — unless the employee is in a senior management role or the contract expressly waives overtime pay (which is legally possible above certain salary thresholds).

Holiday Entitlement

Statutory minimum:

4 weeks (20 working days) per year for employees aged 20+
5 weeks (25 working days) for employees under 20

Many employers offer 5 weeks as standard market practice. GAVs often set higher minimums. Additional public holidays (8–12 per canton) are on top of annual leave.

Non-Compete Clauses (Konkurrenzverbot)

Non-compete clauses are valid in Switzerland if:

The employee has access to clientele, trade secrets, or manufacturing knowledge
The clause is limited to a specific geographic area, business sector, and time period (maximum 3 years under Art. 340a OR)
It is proportionate to the legitimate interest being protected

Financial compensation: Swiss law does not require financial compensation for the non-compete period (unlike Germany and some other jurisdictions). An employee is simply bound by the clause after termination.

Employer-triggered termination: If the employer terminates without good cause, or if the employee terminates for good cause attributable to the employer, the non-compete clause lapses automatically.

Confidentiality

Employees have a statutory duty of confidentiality about employer business secrets during and after employment (Art. 321a/321b OR). A contractual confidentiality clause reinforces this and can specify what counts as confidential information.

For companies with intellectual property assets, see our IP protection Switzerland guide.

Intellectual Property

Work created by an employee in the exercise of their employment duties belongs to the employer (Art. 332 OR). The employee must transfer all rights to inventions made in connection with their work. Inventions made outside working hours on unrelated matters belong to the employee.

Fixed-Term vs Open-Ended Contracts

Open-ended (unbefristete) contracts: Terminated by either party with proper notice. Standard for ongoing employment relationships.

Fixed-term (befristete) contracts: End automatically at the agreed date — no notice required. Restrictions:

Fixed-term contracts should not be used simply to avoid notice obligations (courts can recharacterise repeated short fixed-term contracts as open-ended)
Maximum duration is not statutorily capped but repeated renewal without objective justification can be challenged

Trial-then-convert: A fixed-term contract that is continued after expiry without formal renewal becomes an open-ended contract.

Applicable Law and Jurisdiction

Swiss-law contracts must be governed by Swiss law for employees ordinarily working in Switzerland (mandatory under Swiss PIL Act). Choice of a foreign governing law for a Swiss-domiciled employee working in Switzerland will be overridden by Swiss mandatory employment law provisions.

For a full overview of the legal framework, see our employment law Switzerland pillar guide.

Collective Labour Agreements (GAV)

If your industry sector has a binding GAV (generally binding / allgemein verbindlich erklärt), its terms override contrary contract terms to the extent they are more favourable to the employee. Key GAV sectors: construction, hospitality (L-GAV), cleaning, healthcare, metalworking, retail.

Before drafting a contract, confirm whether a binding GAV applies. Non-compliance with a binding GAV can result in back-pay claims plus penalties. The State Secretariat for Economic Affairs (SECO) maintains the official register of generally binding collective agreements — search it at seco.admin.ch.

You can also verify your obligations on admin.ch, and consult the statutory framework directly via fedlex.admin.ch.

Frequently Asked Questions

Can I pay an employee in a foreign currency?

Only if the employee works primarily in a foreign country. For Swiss-based employees, payment must be in CHF.

Is a non-compete clause enforceable if the employer fires the employee?

If the employer terminates without good cause — i.e., there is no fault by the employee — the non-compete clause lapses. If the employee is terminated for cause (serious misconduct), the non-compete clause remains in force.

Must the employment contract be in German, French, or Italian?

No statutory language requirement exists for private employment contracts. English-language contracts are common for international employees. However, in disputes before Swiss courts, translations will be required.

Is a written employment contract required in Switzerland?

Swiss law does not require written contracts for most roles — oral agreements are legally binding. Written contracts are strongly recommended because the burden of proof in disputes falls on the party asserting a term.

What is the default probation period in Switzerland?

If no probation period is specified, a default probation of 1 month applies. By agreement, it can be extended to a maximum of 3 months, or up to 6 months under a collective labour agreement.

Is a 13th month salary mandatory in Switzerland?

Not under the Code of Obligations, but it is extremely common and required by many collective labour agreements. Once agreed or established through consistent practice, it becomes a contractual entitlement.

What is the maximum duration of a non-compete clause in Switzerland?

Under Art. 340a OR, a non-compete clause is capped at 3 years. It must also be limited to a specific geographic area and business sector to be enforceable.

What are the statutory minimum holiday entitlements in Switzerland?

Employees aged 20 and over are entitled to 4 weeks (20 working days) per year. Employees under 20 receive 5 weeks. Many employers offer 5 weeks as standard. Cantonal public holidays are in addition to annual leave.

Can a fixed-term contract be converted to an open-ended one?

Yes. A fixed-term contract that continues after its agreed end date without formal renewal automatically becomes an open-ended contract under Swiss law.

What happens if an industry collective agreement (GAV) applies to my business?

If a binding GAV applies, its terms override any less favourable contract terms. Non-compliance can result in back-pay claims and penalties. Always verify whether a GAV covers your sector before drafting contracts.

Get Expert Advice on Your Swiss Employment Contracts

Swiss employment contracts carry obligations that are easy to miss — from GAV coverage to the precise wording of non-compete clauses. Morgan Hartley and the Lawsupport team advise employers on compliant contract drafting, probation periods, and termination provisions tailored to Swiss law.

Request a Free Assessment — contact us to discuss your employment contract requirements:

Phone: +41 44 51 52 592
Email: info@lawsupport.ch
Address: Grafenauweg 4, 6300 Zug, Switzerland

Request a Free Assessment →

Lawsupport (Morgan Hartley Consulting GmbH) | Grafenauweg 4, Zug | +41 44 51 52 592 | info@lawsupport.ch