Employment contracts
in Switzerland.

SALARY PAYMENT IN Swiss Franc (CHF)

CONTRACT LANGUAGES German / French / English

PAYROLL TAX 8.17% – 23.50%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

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Switzerland

Standard employment contract in Switzerland: Open-ended contract

An open-ended contract is the standard type of employment contract used in Switzerland. An open-ended contract remains in effect until either party decides to terminate it. This contract provides a sense of job security for employees, as it offers them the opportunity to work for an indefinite period if they comply with the terms and conditions agreed upon in their official contracts.

Alternative employment contract in Switzerland: Fixed-term contract

Fixed-term employment contracts are an alternative type of contract that specifies a predetermined period of employment. The Code of Obligations does not establish a specific time limit for the duration of a fixed-term contract and a contract can only be renewed one time once the initial fixed period has ended. If an employer wants to renew the contract for a third time, the employer must shift the employee onto an open-ended contract.

Fixed-term contracts are usually used for specific projects or tasks. These contracts specify the start and end dates of the project. On a fixed-term contract, employment ends automatically once the date specified in the contract has passed. If a project is completed earlier than expected, the contract will still terminate on the agreed-upon end date.

Are there other types of employment contracts in Switzerland?

There are also part-time or temporary contracts that are given to employees working on a part-time basis or on a fixed short-term basis. Seasonal temporary contracts are common in Switzerland in sectors and businesses that have a seasonality element to their operations. Part-time contracts can be on-ongoing or fixed.

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FAQs

What are the main differences between the standard contract and the alternative contract in Switzerland?

The main difference between an open-ended contract and a fixed-term contract is that an open-ended contract is ongoing with no expiration date while a fixed term will have a specified clear end date. Fixed-term contracts are commonly used for project-based employment.

Which Switzerland employment contract is right for me?

The right Swiss employment contract that you need will depend on the type of work and how long your business requires a prospective employee. At Horizons, we can work with you to choose the most appropriate employment type that fits your business’s needs when hiring a Swiss employee.

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