Background Checks

Permitted only with the applicant’s explicit written consent. Must be job-relevant—only information directly related to the applicant’s suitability for the position can be collected.

Common Checks:

• Employment history
• Education and qualifications
• References
• Criminal records (limited and only if justified)

Restrictions:

• Full criminal background checks are heavily restricted.
• Must comply with the Federal Act on Data Protection (FADP)

Verification and New Hire Reporting

Employment Verification

• Background Checks: Permitted but limited to job-relevant information. Criminal checks and medical exams are only allowed in specific roles.
• Reference Checks: Common and legally acceptable with the candidate’s consent.

New Hire Reporting

• Mandatory Reporting to Social Security Authorities: Employers must register new employees with the AHV/AVS compensation office before or on the first day of work.
• Accident Insurance Registration: Employees must be enrolled in SUVA or another approved accident insurance provider.
• Pension Fund Enrollment: Mandatory for employees earning above a certain threshold (CHF 22,050/year in 2025).
• Cantonal Notifications: Some cantons may require additional reporting, especially for foreign workers or specific industries.

Onboarding Process & Documentation

Collecting Required Documentation

Upon hiring a new employee, Swiss employers must collect and process several key documents:

• Signed Employment Contract: Must include essential terms such as job title, salary, working hours, and notice periods.
• Proof of Identity: Valid passport or national ID.
• Work Permit (if applicable): Required for non-Swiss nationals, depending on nationality and job type.
• Social Security Number (AHV/AVS): Used for pension and insurance contributions.
• Bank Account Details: For salary payments.
• Tax Information: Including withholding tax details for foreign workers.
• Insurance Enrollment Forms: For accident insurance and pension schemes (BVG/LPP).

Providing Employee Rights and Obligations

Employers are legally required to inform new hires about their rights and obligations, including:

• Working Conditions: As defined in the employment contract and any applicable collective bargaining agreement (CBA).
• Social Security Contributions: Including pension (AHV/AVS), unemployment insurance, and accident insurance.
• Paid Leave: Minimum of four weeks of paid vacation per year.
• Sick Leave and Accident Coverage: Employees are entitled to continued salary payments under certain conditions.
• Data Protection: Employees must be informed about how their personal data will be used and stored, in compliance with the Federal Act on Data Protection (FADP).

Healthcare

Switzerland operates a universal healthcare system based on mandatory individual health insurance. Every resident, including employees, must be covered.

Mandatory Basic Health Insurance (KVG/LAMal)

• Coverage: Includes essential medical services such as doctor visits, hospital care, and prescribed medications.
• Choice of Insurer: Individuals select their own insurer from approved providers.
• Premiums: Paid directly by the individual; vary by canton, age, deductible (franchise), and insurance model.
• Deductibles: Individuals choose a deductible level, which affects premium costs.

Supplementary Insurance (VVG/LCA)

• Optional: Covers services not included in basic insurance, such as:
  • Private or semi-private hospital rooms
  • Alternative medicine
  • Dental care
• Regulated Differently: Governed by private insurance law, not mandatory.

Employer’s Role

• No Legal Obligation: Employers are not required to provide or contribute to basic health insurance.
• Voluntary Support:
  • May offer group discounts for supplementary insurance.
  • Occasionally provide allowances or reimbursements as part of a benefits package.
  • Can facilitate access to insurance advisors or brokers.

Retirement

State Pension (AHV/AVS)

• Purpose: Covers basic living expenses in retirement or in case of disability.
• Mandatory: For all residents.
• Contributions: Shared equally between employer and employee.

Occupational Pension (BVG/LPP)

• Purpose: Maintains standard of living after retirement or in case of disability/death.
• Mandatory: For employees earning over CHF 22,050 ($26,901.73 USD)/year.
• Employer Obligations:
  • Must register eligible employees with a pension fund.
  • Must contribute at least as much as the total employee contributions.
• Contribution Rates: Increase with age and are based on the “coordinated salary” (salary minus a coordination deduction).
• Compliance: Employers must ensure accurate registration, deductions, and timely payments.

Private Pension (Pillar 3a)

• Voluntary: Encouraged through tax incentives.
• Individual Savings: Employees can contribute to private retirement accounts.
• Employer Involvement: Not required but may offer access to financial planning resources.

Social Security

At this time, Vensure does not have social security details available. Visit the Swiss federal website for information about the social security program.

Employment Contract Details

Swiss labor law primarily recognizes two main types of employment contracts: indefinite and fixed-term.

• Indefinite contracts are the standard form of employment. They do not have a predetermined end date and continue until terminated by either party. Termination requires notice, and this type of contract is the most commonly used in Switzerland.
• Fixed-term contracts are designed for temporary or project-based roles. They automatically end on a specified date or upon completion of a specific task. These contracts do not require notice for termination unless otherwise agreed upon. Their use is limited to prevent circumvention of indefinite contract protections.

Collective and Standard Employment Agreements

In addition to individual contracts governed by the Swiss Code of Obligations (CO), employment relationships may also be shaped by:

• Collective Bargaining Agreements (CBAs): These are negotiated between trade unions and employer associations. CBAs often establish minimum standards for wages, working hours, holidays, and other employment conditions. If the terms of a CBA are more favorable to the employee than those in an individual contract, the CBA terms take precedence.
• Standard Employment Contracts (SECs): Issued by cantonal or federal authorities, SECs apply to specific professions or sectors where no CBA exists. They also set minimum employment conditions.

Essential Clauses

• Parties: Full names and addresses of both the employer and the employee.
• Start Date: The date when employment begins.
• Function/Role: A clear description of the employee’s position and responsibilities.
• Salary: The agreed salary amount, how it is calculated (e.g., monthly or hourly), and how often it is paid.
• Working Hours: The number of hours the employee is expected to work each week.
• Holidays: The number of paid vacation days per year, in line with legal minimums.
• Social Security Contributions: Information about deductions for social insurance and pension schemes.
• Probationary Period: If applicable, the duration and terms of the probation period.
• Notice Periods: The rules for terminating the contract, which may be based on the CO, a CBA, or the individual contract.

Additional Clauses Often Included

• Overtime pay and compensation
• Sick leave and accident insurance provisions
• Confidentiality and data protection obligations
• Intellectual property rights
• Reference to applicable CBAs or internal company policies
• Non-compete clauses (must be reasonable and in writing)

Probation Period

Probationary periods are 1-3 months for indefinite employees.

Visas

No information available from Vensure at this time regarding visa stipulations of Switzerland.

Independent Contractors

Independent contractors:

• Work on a self-employed basis.
• Are not subject to the employer’s instructions or organizational structure.
• Bear their own business risk and use their own tools or infrastructure.

Key Legal Considerations

• Misclassification Risk: If a contractor is treated like an employee (e.g., fixed hours, integration into the company, lack of autonomy), authorities may reclassify the relationship as employment, triggering retroactive obligations (e.g., social security contributions, taxes).
• Social Security: Independent contractors must register with the AHV/AVS (Swiss social security system) and pay their own contributions.
• Contracts: Should clearly define the scope of work, independence, and responsibilities to avoid legal ambiguity.

Paid Time Off

In Switzerland, employees are entitled to at least four weeks (20 working days) of paid vacation per year. This applies to all employees over the age of 20 and under 50. Employees under 20 years old are entitled to five weeks of paid leave. Some employers also grant five weeks to employees over 50, though this is not mandated by federal law and may depend on collective agreements or company policy.

• The leave cycle follows the calendar year.
• Carryover of unused vacation days is permitted, but the policy is determined by the employer.
• Unused vacation must be paid out upon termination of employment.

Public Holidays

• New Year’s Day
• Good Friday
• Easter Monday
• Ascension Day
• Whit Monday
• Swiss National Day
• Christmas Day
• St. Stephen’s Day

Bereavement

Not specifically defined by law. Typically:

• 3 to 5 days for close relatives
• 1 to 3 days for other family members

Maternity Leave

Female employees are entitled to 14 weeks (98 days) of maternity leave, paid at 80% of their average salary, up to a maximum of CHF 196 per day.

Eligibility:

• Must have contributed to the Old-Age and Survivors Insurance (OASI) for at least 9 months before the birth
• Must have worked for at least 5 months during that period

In Geneva, cantonal law provides an additional two weeks, bringing the total to 16 weeks. A birth certificate must be provided to claim benefits.

Paternity Leave

Fathers are entitled to 10 days of paid paternity leave, which can be taken as:

• Individual days, or
• Two consecutive weeks (including weekends)

This leave must be taken within six months of the child’s birth. The benefit is:

• 80% of the average salary
• Capped at CHF 220 per day
• Requires submission of the birth certificate

Federal employees are entitled to four weeks of paternity leave.

Parental Leave

There is currently no statutory parental leave in Switzerland beyond maternity and paternity leave. However, some employers may offer additional unpaid or paid leave as part of their internal policies.

Sick Leave

Employees are entitled to paid sick leave, with the duration depending on the length of service:

• In the first year, employees typically receive up to three weeks of paid sick leave.
• After that, the entitlement increases based on years of service and cantonal practice.

Alternatively, many employers opt for a daily sickness benefits insurance scheme, which:

• Covers up to 80% of the employee’s salary
• Can last for a maximum of 720 days
• Requires a medical certificate from the employee

Termination Requirements

Termination of employment is legally effective from the moment the employee receives the notice.

Notice Period

Unless otherwise agreed in the employment contract or collective bargaining agreement, the following statutory notice periods apply:

• During the probation period: 7 days
• During the first year of service: 1 month
• From the second to the ninth year of service: 2 months
• From the tenth year onward: 3 months

Notice must be given to take effect at the end of a calendar month, unless otherwise agreed. Employers may place employees on garden leave during the notice period, allowing them to stay away from work while still receiving full pay.

For fixed-term contracts, no notice is required—the contract ends automatically on the agreed date.

Severance Pay

Severance pay in Switzerland is not generally mandated by law. It is typically governed by:

• Employment contracts
• Collective bargaining agreements (CBAs)

Statutory Severance Entitlement

A statutory severance payment may apply under very limited conditions:

• The employee is at least 50 years old
• Has completed 20 or more years of service
• There is a shortfall in pension benefits

Even when these conditions are met, the entitlement is rare. If granted, the severance amount typically ranges from two to eight months’ salary.

Unemployment Insurance

To qualify for unemployment benefits in Switzerland, an individual must meet the following conditions:

• Contribution Requirement: Must have contributed to the Swiss unemployment insurance system for at least 12 months within the last 2 years.
• Age: Must be over 15 years old and below retirement age.
• Residency: Must reside in Switzerland and hold a valid work-authorized residence permit (e.g., B, C, L, or G permit for foreign nationals).
• Employment Status: Must be fully or partially unemployed and actively seeking work.
• Job Search: Must demonstrate active efforts to find employment.
• Reason for Unemployment: Benefits may be reduced or denied if the individual resigned voluntarily without just cause or was dismissed for misconduct.

Application Process

• Register with the Regional Employment Center (RAV/ORP) immediately upon becoming unemployed.
• Submit all required documents, including:
• Proof of previous employment
• Termination letter
• Residence permit (for non-Swiss nationals)
• Attend regular meetings and comply with job search requirements.

Benefit Details

• Compensation Rate: Typically 70% of the insured salary, or 80% if the claimant has dependent children, earns less than CHF 3,797/month, or is disabled.
• Duration: Varies based on age and contribution history, with a maximum of 520 daily allowances (approximately 2 years).
• Waiting Period: A short waiting period (typically 5 days) applies before benefits begin.
• Suspension Days: Penalties may apply (e.g., for failing to meet job search obligations), during which no benefits are paid.
• Expats must also comply with Spanish tax laws to maintain benefit eligibility.

Anti-Discrimination Practices

Swiss law strictly prohibits discrimination in the workplace based on a range of personal characteristics. The cornerstone of this legal framework is the Gender Equality Act, which specifically addresses discrimination based on sex and includes provisions against sexual harassment. However, the broader principle of equal treatment is enshrined in the Swiss Constitution and reinforced by other federal and cantonal laws.

Employees are protected from discrimination based on:

• Sex and Gender (explicitly covered by the Gender Equality Act)
• Marital Status
• Family Situation
• Sexual Orientation
• Race or Ethnic Origin
• Religion or Belief
• Age
• Disability
• Nationality or Origin
• Union Membership or Political Activity

Employee Rights and Remedies

Employees who believe they have experienced discrimination have several options for seeking redress:

• Internal Company Procedures: Many employers have internal grievance mechanisms.
• Conciliation Bodies: Neutral third parties can mediate disputes.
• Labor Courts: Employees may file formal claims, particularly in cases of dismissal or harassment.

In cases involving sex discrimination, the Gender Equality Act offers procedural advantages, such as reduced burden of proof and facilitated access to evidence, making it easier for employees to assert their rights.

Workplace Safety Standards

Swiss employers are legally obligated to ensure the health and safety of their employees in the workplace. This duty is outlined in the Labor Act and further detailed in regulations such as the Ordinance on the Prevention of Accidents and Occupational Diseases (APAO).

Employer Responsibilities

Employers must take proactive steps to prevent workplace accidents and occupational illnesses. These responsibilities include:

• Hazard Identification and Risk Assessment: Regularly evaluating the workplace to identify potential hazards and assess associated risks.
• Risk Mitigation: Implementing appropriate measures to eliminate or minimize identified risks.
• Provision of Safety Equipment: Supplying employees with the necessary personal protective equipment (PPE) and ensuring its proper use.
• Training and Instruction: Educating employees on safety protocols, emergency procedures, and the correct use of tools and machinery.
• Safe Workplace Design: Ensuring that the physical work environment is designed, maintained, and organized to promote safety.
• Employee Consultation: Involving employees or their representatives in discussions and decisions related to workplace safety.

Employee Responsibilities

Employees also have a duty to contribute to a safe working environment by:

• Following all safety instructions and procedures.
• Properly using the safety equipment provided.
• Reporting hazards or unsafe conditions to their employer.

If an employee reasonably believes that their health or safety is at serious risk, they have the right to refuse to perform the work, provided the refusal is justified and reported appropriately.

Workers’ Compensation

Coverage

• Occupational Accidents: All employees are covered from their first day of work.
• Non-Occupational Accidents: Coverage is mandatory for employees working more than 8 hours per week for the same employer.
• Occupational Diseases: Illnesses directly caused by work conditions are also covered.

Insurers

• Employers must register with SUVA (Swiss Accident Insurance Fund) or another approved private accident insurer.

Employer Obligations

• Premium Payments:
  • Employers pay the full premium for occupational accident insurance.
  • Employees typically pay the premium for non-occupational accident insurance (deducted from salary).
• Registration: New employees must be registered with the accident insurer before or on their first working day.
• Reporting: Employers must report any workplace accident or occupational illness immediately.

Benefits Provided

• Medical Treatment: Full coverage for necessary medical care, including hospitalization and rehabilitation.
• Daily Allowance: 80% of the insured salary starting from the third day after the accident.
• Disability Pension: If the employee is permanently unable to work, a pension is provided based on the degree of disability.
• Survivor Benefits: In case of death, dependents may receive survivor pensions.

Coordination with Other Social Insurances

Workers’ compensation operates alongside other systems like:

• Old-Age and Survivors Insurance (AHV/AVS)
• Disability Insurance (IV/AI)
• Unemployment Insurance (ALV/AC)

Labor Law Sanctions

• Unfair Dismissal (Art. 336 CO): Protects employees from dismissals based on discriminatory or retaliatory grounds. Sanctions include compensation up to six months’ salary and potential reinstatement.
• Violation of Working Time Regulations (Labor Act): Covers maximum working hours, rest periods, and night work. Sanctions include fines up to CHF 180,000 for companies violating time limits or failing to keep records.
• Discrimination and Equal Pay Violations (Gender Equality Act): Prohibits gender-based discrimination and mandates equal pay for equal work. Sanctions include civil liability, reputational damage, and mandatory corrective measures.
• Failure to Comply with Collective Bargaining Agreements: Applies to sectors with mandatory wage and condition standards. Sanctions include fines and exclusion from public contracts for repeated violations.
• Occupational Health and Safety Violations (SUVA & Labor Act): Employers must ensure safe working conditions. Sanctions include fines, shutdowns, and criminal liability in cases of gross negligence or injury.
• Non-Compliance with Job Registration Requirements: Employers must report vacancies in sectors with high unemployment. Sanctions include administrative penalties and restrictions on hiring.
• Improper Use of Temporary or Platform Workers: Regulates fair treatment and classification of gig economy workers. Sanctions include fines and legal action for misclassification or abuse.
• Failure to Provide Mandatory Leave (e.g., maternity, paternity, sick leave): Employers must grant statutory leave entitlements. Sanctions include compensation claims and potential labor court rulings.