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What is an Employment Contract?

An Employment Contract sets out the legal relationship between you and your employer under Swiss law. It spells out your core rights and duties - from salary and working hours to vacation days and notice periods. While Swiss law allows verbal agreements, written contracts provide much better protection for both sides.

The Swiss Code of Obligations requires certain key elements in every employment contract, like job description, start date, and salary terms. Smart employers include additional items such as confidentiality rules, training requirements, and bonus structures. Most Swiss contracts also reference applicable collective bargaining agreements or industry-standard working conditions that automatically apply.

When should you use an Employment Contract?

Use an Employment Contract whenever you hire someone in Switzerland - from the CEO to part-time staff. While verbal agreements are legally valid, written contracts protect both parties and prevent misunderstandings about essential terms like salary, working hours, and responsibilities. This becomes especially important for specialized roles or when offering unique benefits.

Swiss law requires written documentation for apprenticeships and temporary work arrangements. Having clear contracts also helps navigate complex situations like performance issues, role changes, or terminations. Many employers create contracts before the employee's first day to ensure smooth onboarding and clear expectations from the start.

What are the different types of Employment Contract?

Who should typically use an Employment Contract?

  • Employers: Companies, organizations, and individual business owners who draft and issue Employment Contracts to protect their interests and clarify expectations
  • Employees: Workers at all levels who review, negotiate, and sign these contracts, gaining clear documentation of their rights and duties
  • HR Managers: Oversee contract creation, ensure compliance with Swiss labor laws, and manage contract updates or modifications
  • Legal Counsel: Review and customize contracts to protect both parties and ensure alignment with Swiss regulations and industry standards
  • Labor Unions: Negotiate collective agreements that influence individual Employment Contract terms in unionized sectors

How do you write an Employment Contract?

  • Basic Details: Gather employee information, job title, start date, workplace location, and reporting structure
  • Compensation Package: Define salary, bonus structure, benefits, and payment schedule according to Swiss standards
  • Working Conditions: Document hours, vacation days, overtime rules, and any flexible work arrangements
  • Role Requirements: List key responsibilities, performance expectations, and any special qualifications needed
  • Legal Framework: Check applicable collective agreements and industry-specific regulations in your canton
  • Template Selection: Use our platform to generate a legally-sound contract that includes all mandatory Swiss employment law elements

What should be included in an Employment Contract?

  • Party Details: Full names and addresses of both employer and employee, plus employment location
  • Position Description: Job title, key responsibilities, and reporting relationships
  • Duration Terms: Start date, contract type (fixed/unlimited), and notice periods
  • Compensation Package: Salary, payment schedule, bonuses, and all benefits under Swiss law
  • Working Conditions: Hours, breaks, overtime rules, and vacation entitlements
  • Data Protection: Employee privacy rights and data handling procedures
  • Governing Law: Reference to Swiss Code of Obligations and applicable collective agreements
  • Signatures: Dated signatures from both parties, with proper authorization

What's the difference between an Employment Contract and an Employment Offer Letter?

People often confuse an Employment Contract with an Employment Offer Letter. While both documents relate to hiring, they serve different purposes in Swiss employment law and business practice.

  • Legal Status: An Employment Contract is a binding legal document that establishes the complete employment relationship, while an offer letter is preliminary and typically non-binding
  • Content Depth: Employment Contracts contain detailed terms, conditions, and obligations required by Swiss law, whereas offer letters briefly outline basic employment terms
  • Timing: Offer letters come first during recruitment to propose employment terms, followed by the formal Employment Contract after acceptance
  • Enforceability: Only the Employment Contract provides full legal protection and can be used to enforce rights and obligations under Swiss law
  • Required Elements: Employment Contracts must include specific clauses required by Swiss labor law, while offer letters can be more flexible in format and content

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