Labour and Employment

Yes. The sources of Swiss labor law are:

• International law: ratified conventions (notably the ECHR ; RS 0.101, ILO, and AFMP ; 0.142.112.681)
• Federal Constitution of the Swiss Confederation (RS 101): provides the overall framework and fundamental rights (equality, freedom of association, right to strike) that guide legal interpretation
• Federal legislation:
• • Swiss Code of Obligations (CO, RS 220) (Arts. 319–362): governs the formation, performance, and termination of employment contracts, including abusive dismissal, fixed-term and indefinite contracts.
  • Labor Act (LA) and ordinances (OLT 1–5): regulate working and rest hours, night and Sunday work, health and safety.
  • Social insurance laws:
  • • Federal Act on Old Age and Survivors' Insurance (RS 831.10); Federal Act on Disability Insurance (RS 831.20); Federal Act on Compensation for Loss of Earnings (RS 834.1)
    • Federal Act on Accident Insurance (RS 832.20)
    • Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans (RS 831.40)
    • Unemployment Insurance Act (RS 837.0)
    • Gender Equality Act (GEA): prohibits gender-based discrimination and provides mechanisms for pay equality controls.
    • Federal Act on Employee Information and Consultation (Participation Act): grants information and consultation rights, especially in cases of transfers, restructuring, or collective dismissals.
    • Federal Act Employment Services and Hiring of Services (Employment Service Act (RS 823.11) regulates staffing agencies and temporary work (authorization, liability, minimum conditions).
    • Posted Workers Act (RS 823.20): imposes Swiss minimum standards (wages, working hours, safety) and organizes inspections and sanctions.
    • Federal Data Protection Act (DPA, RS 235.1): governs the processing of employee data (lawfulness, proportionality, information, security, access rights), including monitoring and transfers.
    • Civil Procedure Code (CPC RS 272) : all the rules that govern the conduct of civil proceedings (how to bring a case before a judge, deadlines, evidence, appeals, etc.
  • Cantonal laws:
  • • Cantonal minimum wage laws: adopted in certain cantons (GE, NE, JU, TI, BS), setting a minimum hourly wage applicable to all private-sector employment, subject to exceptions under the law or certain collective agreements.
    • Cantonal judicial and procedural laws: regulate the competence and functioning of labor courts, as well as specific procedural rules per canton (e.g., Labor Court Act in Geneva, E 3 10).
  • Federal Supreme Court jurisprudence and cantonal case law : clarify and unify the interpretation of legislation.

(a) Collective Bargaining Agreements

In Switzerland, collective bargaining agreements (CBAs) are concluded between trade unions and employer associations.

CBAs contain:

• Organizational clauses regulating the mutual rights and obligations of the contracting parties;
• Normative clauses, which set rules regarding the formation, content, and termination of individual employment contracts between employers and the workers concerned, as well as other clauses related to employer–employee relations;
• Control and enforcement clauses.

CBAs may deviate from the default provisions of the CO, but they cannot violate mandatory legal norms.

In addition to a branch-level CBAs and company agreements can specify adapted arrangements (working hours, bonuses, remote work). These agreements are effective if incorporated contractually or via a valid company regulation.

CBAs are binding for:

• Employers and employees who are members of the signatory associations;
• Employers and employees who are not members but have individually agreed to be bound;
• Employers who adopt the CBAs (express reference in contracts/regulations or consistent application);
• All employers and employees in the relevant sector when the CBAs is extended by the authority.

(b) Standard Employment Contracts

In Switzerland, a standard employment contract (SEC) is an official document issued by the Confederation or cantons. It sets minimum working conditions for certain professions, especially where no collective labor agreement exists. It is not an individual contract, but a reference framework to protect employees and harmonize practices within a sector.

A SEC may define elements such as minimum wages, working hours, notice periods, probationary conditions, or benefits in kind (housing, meals, etc.). Some SECs are indicative only, while others, declared mandatory, impose legal minimum standards to prevent undercutting or abuses.

This type of contract typically applies to sectors where workers are more vulnerable, such as domestic work, agriculture, or seasonal employment. In summary, the SEC provides a uniform protective framework and regulates working conditions in areas lacking collective agreements.

In Switzerland, employment contracts are commonly used at all levels.

The types of contracts are as follows:

• Indefinite-term contracts, which are the norm,
• fixed-term contracts, which automatically end on the agreed date,
• part-time or on-call employment contracts,
• temporary assignments through employment agencies (subject to authorisation),
• apprenticeship contracts, which must be concluded in writing (Art. 344a para. 1 CO).

In principle, Swiss law provides for freedom of form: in accordance with Art. 319 et seq. CO, the contract may be concluded orally, in writing or even tacitly, when the employee performs their work and the employer pays their salary. If the employee requests so, the employer must provide the employee, within one month from the start of employment, with a written document setting out the essential elements of the relationship: the identity of the parties, the starting date, the position, the salary, and the working hours (Art. 330b CO).

The employment contract may not derogate from the mandatory provisions of labor law (Art. 361 CO) or may only derogate from semi-mandatory provisions in favor of the employee (Art. 362 CO).

In practice, the employment contract will specify the semi-mandatory and derogatory standards. In addition, it will contain certain clauses that are only valid if they are set out in writing (in particular: the non-competition clause, loss of earnings insurance).

Finally, even when an employment contract is not in writing or a clause is unclear, it remains fully valid and can be interpreted according to the general principles of Swiss contract law. Thus, in the event of ambiguity or disagreement over its content, it is up to the judge to determine the actual and common intention of the parties. If this cannot be established, the contract is interpreted in good faith, i.e., as a reasonable person would have understood it in the same circumstances.

In Switzerland, there is no general parental leave. However, the law provides for several specific types of leave related to the birth or adoption of a child:

• The mother is entitled to 14 weeks of maternity leave after giving birth;
• The legal father or the other parent (Paternity leave) is entitled to two weeks' leave to be taken within six months of the birth;
• Since 2023, adoptive parents of a child under the age of four have been entitled to two weeks' adoption leave.

Some collective agreements, company regulations or employment contracts may provide for more favorable benefits.

In summary, Swiss law regulates maternity, paternity and adoption leaves, but does not recognize a parental leave as such.

In Switzerland, the duration and benefits of leave differ depending on whether it is maternity, paternity, or adoption leave, with each regime subject to its own rules.

• Maternity leave is 14 weeks from the date of birth, compensated at 80% of average income, up to a limit of CHF 220 per day. It can be extended if the child is hospitalized for more than 14 days (Art. 329f para. 2 CO), or in the event of the death of the father or the mother's spouse within six months of the birth (Art. 329f para. 3 CO). The law prohibits any professional activity during the first eight weeks, and early return to work results in the loss of the right to remaining benefits.
• Paternity leave lasts two weeks (14 daily allowances) and must be taken within six months of the birth (Art. 329g CO). It can be taken as a block or as individual days, with compensation equivalent to that for maternity leave (80% of income, max. CHF 220/day). Art. 329g bis para. 1 CO provides for an additional 14 weeks if the mother dies during the 14 weeks after giving birth.
• Finally, adoption leave lasts two weeks, which can be taken as a block, by the week or by the day, within one year of the child's arrival. This leave can be shared between both parents, but never simultaneously (Art. 329j CO). Compensation follows the same rules: 80% of previous income, capped at CHF 220 per day, to be claimed from the compensation fund.

In Switzerland, trade unions are recognized as legitimate social partners and enjoy freedom of association, guaranteed by Art. 28 of the Federal Constitution of the Swiss Confederation and by several international conventions ratified by Switzerland, notably ILO Convention No. 87. This freedom protects both the right of workers to join an organization and the right of trade unions to carry out their activities without outside interference.

Trade unions are mainly involved in collective bargaining agreements (CBAs), which they negotiate with employers' associations in order to define uniform working conditions and remuneration within a sector. They also participate in the implementation and monitoring of these agreements, particularly through joint committees, and contribute to their periodic adaptation.

The processing of employees’ personal data benefits from a presumption of lawfulness when it complies with the general conditions of the Data Protection Act (DPA) and the requirements of Art. 328b CO. In other words, there is no infringement of personality rights when the processing is carried out in good faith, is proportionate and transparent, and is strictly necessary for the performance of the employment contract or for the management of the employment relationship (for example: personnel administration, payroll, performance evaluations). In such cases, the processing is considered permissible.

However, when the processing does not meet these conditions — for instance, if it goes beyond what is strictly necessary or concerns data unrelated to the employment relationship — there is a presumption of unlawfulness, and thus an infringement of the employee’s personality rights. Such an infringement may nonetheless be justified if it is based on legal grounds, on the valid consent of the data subject, on an overriding private or public interest or legal grounds.

The DPA also imposes several information obligations on employers towards their employees. As a rule, a minimum amount of information must be provided, including the identity and contact details of the data controller, the purposes of the processing, the categories of data recipients, and the destination or transfer location (especially in the case of cross-border data transfers). In addition, a special duty to inform applies in cases of automated individual decisions, such as recruitment processes based solely on algorithms. It is furthermore recommended that employers maintain a clear and accessible data protection policy, ensuring transparency and compliance with the DPA.

Contingent work is governed by the Employment Services Act and its implementing ordinance. All temporary employment agencies must obtain a cantonal or federal authorization.

There are three types of contingent workers: temporary employment, primarily assigned workers, and occasionally assigned workers, each of which is subject to different rules and regulations.

In addition, a collective bargaining agreement, declared binding, applies to the entire sector. It sets mandatory standards for minimum wages, working hours, holidays, and social protection.

In Switzerland, there is no minimum wage at the federal level.

Some cantons have introduced a minimum wage at a cantonal level.

Here is an example of cantonal minimum wages for the year 2025:

• Geneva: CHF 24.48/hour, which will increase to CHF 24.59/hour in 2026
• Basel-City: CHF 22.00/hour (for workers not covered by a collective bargaining agreement).
• Jura: CHF 21.40/hour
• Neuchâtel: CHF 21.09/hour
• Ticino: between CHF 20.00/hour and CHF 20.50/hour

Where cantonal minimum wages exist, they are generally indexed and revised annually, as is the case in Geneva.

It should be noted that several cantons do not have a legal minimum wage.

Minimum wages may also be set by collective bargaining agreement or standard employment contracts.

In Switzerland, there are two different systems: contractual overtimes as defined by the CO and mandatory overtimes as defined by the LA.

In accordance with Art. 321c CO, all hours worked in excess of the contractual working hours, but which remain within the maximum limits set by the LA (45 or 50 hours per week depending on the sector), constitute contractual overtime. They may be:

• either compensated by equivalent time off, if the employer and employee agree;
• or remunerated at the normal rate plus 25%.

However, it is possible, by collective bargaining agreement, individual contract or company regulations, to provide that overtime is compensated without a premium, or even included in the salary as a lump sum, provided that the clause is clear and proportionate.

Beyond the legal maximum of 45 or 50 hours per week, the hours worked constitute mandatory overtime within the meaning of Articles 12–13 of the LA. They must be remunerated with a 25% increase unless compensated by equivalent rest time.

There is an exception for specific workers subject to the 45-hour limit ( in particular: office workers, technical staff, and retail staff): the first 60 hours of mandatory overtime per year do not have to be compensated with time off or additional pay. Above this threshold, any overtime entitles the worker to a 25% premium or compensatory time off.

In Switzerland, the right to holiday is guaranteed by Art. 329a CO. All employees are entitled to a minimum of four weeks of paid holiday per year of service. For workers under the age of 20, this minimum is increased to five weeks.

Holiday must be taken in kind. Payment in cash is only permitted at the end of the employment relationship, to settle any days not taken (Art. 329d para. 2 CO). During vacation, the employee receives their usual salary.

Although the employer is responsible for planning holidays, they must take the needs of their employees into account. The law requires at least two consecutive weeks to be granted annually.

In the event of joining or leaving the company during the year, the entitlement is reduced proportionally (Art. 329a para. 1 CO). In the event of prolonged absence, the employer may also reduce the vacation entitlement (Art. 329b CO). However, absences due to illness or accident only justify a reduction beyond a certain period: the first 30 days of incapacity do not result in any reduction, after which a reduction of one twelfth per full month of absence is possible. Protective exceptions exist, particularly for maternity leave (Art. 329b para. 3 CO).

For employees with very irregular working hours (e.g., on call or with fluctuating working hours), it is permissible, on an exceptional basis, to replace vacation in kind with vacation pay in addition to the regular salary. In this case, the entitlement is converted into a percentage: 8.33% of the salary for four weeks of vacation and 10.64% for five weeks. This allowance must be clearly stated in the employment contract and separately on each pay slip to ensure transparency and avoid any confusion with the basic salary. Case law on this issue is very restrictive and only allows it in rare exceptions.

Under Swiss law, there is no right to a certain number of "sick leave" but a limited right to continued salary payment (Art. 324a CO). Once the contract has lasted for more than three months, or has been concluded for more than three months, the employer must pay the full salary for a certain period of time when the employee is unable to work through no fault of his own due to illness. The legal minimum is three weeks' salary during the first year of service; thereafter, salary must be paid for a "fairly" longer period, determined on the basis of seniority and circumstances.

These periods have been defined using three scales (referred to as Bern, Basel, and Zurich scale) applicable depending on the place of work.

The Bern scale, widely applied in French-speaking Switzerland, provides, for example, for one month's salary from the second year, two months in the third and fourth years, and so on. These scales are indicative and the judge may deviate from them. The credit is unique per year of service: it covers all impediments (including pregnancy) and cannot be carried over.

However, it is possible to opt out by taking out loss of earnings insurance. These schemes must be agreed in writing between the employer and employees and offer protection equivalent to the legal entitlement. In practice, this means coverage of at least 80% of the insured salary, compensation for 720/730 days out of 900, a limited waiting period, and partial financing of premiums by the employer.

When the parties have validly agreed to this derogatory scheme in the contract, the insurance replaces the employer in terms of its obligation to pay the salary in accordance with the insurance policy taken out.

Finally, if the incapacity is already covered by compulsory social insurance (accident, maternity, military service, etc.), the employer is released from its obligation to the extent that these benefits amount to at least 80% of the salary. Where the insurance does not cover the incapacity or where a waiting period applies, the employer must make up the difference in order to guarantee the employee at least 80% of their income during the period concerned (Art. 324b CO).

In Switzerland, the retirement age is defined by the Federal Law on Old Age and Survivors' Insurance and corresponds to the reference age at which an individual entitled to receive a statutory old-age pension.

For men, the retirement age is 65 and this will not change.

For women, the retirement age was 64 until 2023. With a recent reform, it is being gradually raised to align with 65. The increase applies according to year of birth, in three-month increments:

• Women born in 1961: retirement at 64 years and 3 months.
• Women born in 1962: retirement at 64 years + 6 months.
• Women born in 1963: retirement at 64 years + 9 months.
• Women born in 1964 and after: retirement at age 65.

From 2028 onwards, the legal retirement age will therefore be definitively harmonized at 65 for everyone, men and women alike.

However, the law allows for early retirement (from age 63, with a reduction in benefits) or deferral until age 70, resulting in an increase in benefits.

In Switzerland, discrimination in the workplace is addressed at two levels: the general framework of CO and the specific rules of the Federal Gender Equality Act (GEA).

On the one hand, employers must protect the personality of their employees and refrain from any unfavorable treatment based on personal characteristics unrelated to professional activity (Art. 328 CO). Decisions related to origin, nationality, language, religion or beliefs, age, sexual orientation, or disability are therefore considered discriminatory when they are not justified by objective job requirements.

Furthermore, the GEA prohibits any discrimination based on gender, including pregnancy and maternity, gender identity, and equal pay for work of equal value (Art. 3 GEA). Discrimination can be direct, when a person is treated less favorably because of their gender, or indirect, when an apparently neutral rule disproportionately disadvantages one gender without objective justification. Sexual harassment is expressly classified as discrimination and engages the employer's liability (Art. 4 and 5 GEA).

Unequal treatment based on gender in recruitment, salary determination, task allocation, training, promotions, bonus awards, working conditions, or dismissal is therefore unlawful.

More broadly, the Federal Constitution (Art. 8) prohibits any discrimination based in particular on:

• origin
• language
• social status
• religious or political beliefs
• age
• gender identity or physical or mental disability.

These categories are protected under the general provision of Art. 328 CO, which imposes a duty on employers to protect the personality, health, and integrity of employees.

Gender discrimination is specifically prohibited and regulated by the GEA.

Finally, some specified categories of person shall have to be treated under certain precaution according to the case law. For example, older people are also protected. Case law recognizes enhanced protection: dismissal is not unfair solely on the grounds of age, but it may become so if the employer fails to take into account the vulnerability associated with age and long service. In practical terms, before dismissing an old employee with long term services, the employer must seriously consider alternatives (job adaptation, training, reassignment), document the reasons, follow a fair procedure, and avoid any abrupt termination. Otherwise, the dismissal may be deemed abusive (Art. 336 CO), resulting in potential compensation.

In Switzerland, protection against discrimination is based on several legal instruments.

With regard to the CO and LA rules, employers are required to protect the personality of their employees and prevent any harm to their integrity, including psychological harm. This requires the implementation of clear internal policies, training for managers, confidential reporting channels, an impartial investigation procedure, and proportionate sanctions.

With regard to gender equality, the GEA prohibits any direct or indirect discrimination based on gender, pregnancy, maternity, or gender identity, and guarantees equal pay (Art. 3, 4 GEA). The law also provides protection against victimization: disadvantaging a person because they exercise their rights or participate in proceedings is in itself discriminatory (Art. 5 GEA).

Companies with at least 100 employees must periodically conduct an equal pay analysis, have it reviewed by an independent body, and communicate the results to their staff (Art. 13a–13f GEA).

Within the company, the employer must establish reliable internal mechanisms to address complaints effectively. This includes providing a clear complaint procedure, ensuring confidentiality, protecting employees from retaliation , and taking immediate measures where necessary (e.g., reassigning or suspending the alleged perpetrator).

In case of doubt, the employer must conduct an impartial investigation, including hearings and a careful analysis of the facts based on the balance of probabilities, followed by an appropriate corrective decision.

In addition to the general internal procedures for discrimination claims, the affected person by a gender discrimination may contact the cantonal equality offices for support, advice, or mediation. In certain circumstances, specialized associations are entitled to initiate legal action seeking a declaration or cessation of discrimination (Art. 7 GEA).

An employee who believes they have been subjected to discrimination and does not receive an adequate response from their employer can subsequently bring a claim for a violation of their personality rights before the courts.

If the victim suffers proven economic damage (loss of income, medical expenses), the employer may be required to compensate them on the basis of Art. 97 CO. In the event of serious personal injury (harassment, humiliation), compensation for moral damage may be awarded (Art. 49 CO).

In addition, provisional measures (Art. 261 et seq. CPC) may be requested when there is a risk of serious or irreparable harm, for example to stop ongoing harassment during proceedings.

In cases of gender-based discrimination, the GEA provides several remedies, including:

• The court may determine that discrimination has occurred and order it to cease. In the context of wages, this can include the immediate adjustment of pay, the payment of arrears with interest, and the correction of internal certificates or decisions.).
• In the case of discriminatory non-employment, the employee may be entitled to a lump-sum compensation of up to three months’ salary. If the discrimination takes the form of a dismissal, compensation may reach up to six months’ salary (Art. 5 para. 4 GEA). These amounts aim both to compensate for the violation of equality and to penalize the employer, regardless of actual financial loss.
• The termination of an employment contract by the employer is voidable if it is unjustified and occurs in retaliation for a complaint, the initiation of a conciliation (a preliminary mediation step) procedure, or the filing of a legal action.

If an employee brings a gender-based discrimination case before a court, the GEA provides for an eased burden of proof: the employee only needs to make the harassment or discrimination plausible, after which the employer must demonstrate that no violation occurred (Art. 6 GEA). In addition, the law allows for a simplified procedure to facilitate access to justice.

There is no specific law on harassment, bullying, or retaliation/victimisation, so we refer here to question 4.5.

Under Swiss law, the applicable principle is that of freedom of dismissal. In principle, employers are free to decide whether or not to grant ordinary dismissal. Ordinary dismissal may therefore be granted for any reason, provided that the decision is not abusive within the meaning of art. 336 CO.

Dismissal is abusive if it violates good faith, for example if it is discriminatory (gender, pregnancy), given in retaliation against an employee who asserts their rights, or used to harm the employee's personality (Art. 336 CO). In this case, the dismissal is not void but entitles the employee to compensation of up to six months' salary.

The employer must provide written reasons if the employee requests them (Art. 335 para. 2 CO).

Economic reasons or poor performance are in contrary acceptable grounds for dismissal. The company may dismiss an employee on the grounds of financial difficulties, reorganization, or strategic decisions, provided that it acts without arbitrariness and in good faith.

Under Swiss law, notice periods vary depending on the stage of the contract. During the trial period, which lasts one month by default and may be waived or extended to three months in writing, the contract may be terminated with seven days' notice (Art. 335b CO).

After the trial period, the Swiss Code of Obligations provides for statutory notice periods (Art. 335c CO), to be given at the end of a month:

• 1 month during the 1st year of service;
• 2 months from the 2nd to the 9th year;
• 3 months from the 10th year onwards.

The parties may agree in writing (in particular in individual contract, collective bargaining agreement) on different notice periods and/or a different expiry date, provided that they are the same for both parties and not shorter than one month.

The notice period is suspended if, during this period, the employee is in a protected situation within the meaning of Art. 336c CO, such as illness or accident, pregnancy and the 16 weeks following childbirth, or military, civil or civil defense service. The notice period resumes once the protected period has expired.

Finally, immediate termination without notice remains possible only in cases of just cause making the continuation of the relationship unbearable (Art. 337 CO).

In Switzerland, an employee can challenge a dismissal that they consider abusive. The termination remains valid, but may entitle the employee to compensation set by the judge of up to six months' salary (Art. 336a CO).

To assert this right, the employee must:

• request, if they wish, that the employer provide written reasons for the dismissal decision (Art. 335 para. 2 CO);
• file a written objection before the end of the notice period (Art. 336b para. 1 CO);
• bring legal action within 180 days of the end of the contract (Art. 336b para. 2 CO).

Under Swiss law, there is no general right to statutory severance pay in the event of dismissal. In principle, the employee simply receives their salary until the end of the notice period, after which the contract ends without automatic severance pay.

However, there are some exceptions:

• Articles 339b to 339d CO provide for compensation for employees aged 50 or over who have been with the company for 20 years. However, since the introduction of the Federal Act on Occupational Retirement, Survivors and Disability Pension Plans, this compensation is only payable if the employee is not sufficiently covered by a professional pension fund..
• Compensation may be provided for in a collective bargaining agreement (CBA), company regulations, or an individual agreement between the employer and the employee.
• Finally, in the event of collective redundancies, a social plan may include severance payments. However, neither their existence nor their amount is fixed by law: they are the result of negotiations between the employer and employee representatives.

In Switzerland, labor disputes are primarily dealt with by the cantonal courts. Each canton has its own rules of organization.

In several cantons, there is a specialized labor court. It is composed of a professional judge and two judges from the world of work, one representing employers and the other representing employees. This joint composition applies to all individual disputes relating to employment contracts, including those concerning discrimination within the meaning of the GEA.

In other cantons, there are no separate labor courts. After the conciliation phase, cases are dealt with by the ordinary civil courts.

Some cantons have different courts depending on the amount in dispute.

The rules of procedure are governed by the Swiss Code of Civil Procedure.

In Switzerland, any labor law action begins in principle with an attempt at conciliation before the competent authority of the canton (Art. 197 et seq. CPC). If no agreement is reached, authorization to proceed is granted and the claim can be filed with the competent court (labor court or civil court, depending on the canton).

The applicable procedure depends on the amount in dispute:

• For disputes up to CHF 30,000, the simplified procedure applies (Art. 243 para. 2 let. a CPC). It is quick, less formal and exempt from advance costs (Art. 114 let. c CPC). The judge may even investigate the facts ex officio (Art. 247 CPC).
• For disputes exceeding CHF 30,000, the ordinary procedure applies, which is more formal and involves an investigation conducted mainly by the parties.

Certain time limits are specific:

• Unfair dismissal: written objection before the end of the notice period, then action within 180 days of the end of the contract (Art. 336b CO).
• Retaliatory dismissal (Art. 10 GEA): the action for annulment must be brought during the notice period; protection applies throughout the proceedings and for up to six months thereafter.
• Appeals are subject to the general time limits of the CPC and the Federal Court Act (FCA): cantonal appeal within 30 days (Art. 311 CPC) and appeal to the Federal Court within the same time limit.

In practice, the duration of first instance proceedings varies depending on the canton and the workload of the courts, but can be expected to take approximately 12 to 18 months in Geneva. That may vary from canton to canton.

In Switzerland, there has been an increase in collective redundancies.

The Swiss Code of Obligations defines collective redundancies as the termination, within 30 days, of a certain number of contracts for reasons not related to the individual: at least 10 employees in companies with 20 to 99 workers, 10% of the workforce in companies with 100 to 299 employees, and at least 30 employees in companies with 300 or more employees (Art. 335d CO).

In such cases, the employer must consult with employee representatives, or failing that, with the employees themselves, explaining the reasons, the number of jobs at risk, the planned timeframe, and the criteria used. The purpose of this consultation is to allow employees to propose measures to avoid, limit, or mitigate the redundancies (Art. 335e CO).

At the same time, the employer must notify the cantonal employment office in writing, providing the same information, and provide a copy to the employees (Art. 335f CO).

Since 2014, companies with at least 250 employees must draw up a social plan when at least 30 redundancies occur over a period of 30 days. This plan must mitigate the economic consequences of the measure and be negotiated with employee representatives; if negotiations fail, an arbitration commission will issue a binding decision (Articles 335h to 335k CO, in particular Art. 335j SCO).

Finally, judicial protection for employees has been strengthened: the conciliation procedure is free of charge and, for any amount in dispute of less than CHF 30,000, the procedure itself is free of charge. This explains the increase in appeals before the labor courts.

Swiss labor law is characterized by a high degree of flexibility, allowing employers and employees to organize their working relationships with considerable freedom. However, this flexibility is based on a very broad body of case law, which can make the interpretation of the rules complex. It is therefore always recommended to consult a specialist for any human resources questions to ensure compliance with legal requirements and best practices.

For instance, although Swiss law is relatively permissive regarding dismissals, it is important to proceed with caution to avoid any abusive terminations. Notice can be given for any reason, as long as it is not abusive (Art. 336 CO). It is therefore advisable to seek assistance from a specialist for any dismissal or sensitive personnel decision in order to secure the process and minimize the risk of disputes.