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Labor Agreement Template for Switzerland

A comprehensive employment contract governed by Swiss law, designed to establish and regulate the employment relationship between an employer and employee in Switzerland. This agreement incorporates mandatory provisions required by the Swiss Code of Obligations and Federal Labor Law, including terms relating to working conditions, compensation, benefits, and termination rights. The document ensures compliance with Swiss employment regulations while providing clear structure for both parties' rights and obligations, including social security requirements, data protection considerations, and workplace safety standards.

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What is a Labor Agreement?

The Swiss Labor Agreement serves as the foundational document for establishing employment relationships in Switzerland, suitable for both Swiss and international companies employing staff in Switzerland. This contract type must comply with mandatory provisions of Swiss employment law, particularly the Swiss Code of Obligations (Articles 319-362) and the Federal Labor Law. The agreement is essential for documenting key employment terms including position, compensation, working hours, and benefits, while incorporating specific Swiss requirements such as social security contributions, accident insurance, and data protection compliance. It's typically used when hiring new employees, promoting existing staff, or updating employment terms to ensure alignment with current legislation. The document's structure allows for customization based on industry-specific requirements while maintaining compliance with Swiss employment regulations.

What sections should be included in a Labor Agreement?

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Position and Duties: Job title, role description, and primary responsibilities

5. Commencement and Duration: Start date and type of contract (fixed-term or indefinite)

6. Probationary Period: Length and terms of the trial period

7. Working Hours and Place of Work: Regular working hours, location, and flexibility arrangements

8. Salary and Benefits: Base salary, payment schedule, and mandatory benefits

9. Vacation and Public Holidays: Annual leave entitlement and treatment of public holidays

10. Illness and Accident: Sick leave policy and accident insurance coverage

11. Social Security Contributions: Details of mandatory social security deductions and contributions

12. Confidentiality: Protection of company information and trade secrets

13. Data Protection: Handling of employee personal data in compliance with FADP

14. Termination: Notice periods and termination procedures

15. Governing Law: Confirmation of Swiss law application and jurisdiction

What sections are optional to include in a Labor Agreement?

1. Overtime Arrangements: Include when position may require regular overtime work

2. Bonus Scheme: Include when offering performance-based compensation

3. Non-Competition: Include for senior positions or roles with access to sensitive information

4. Intellectual Property Rights: Include for creative or technical positions involving IP creation

5. Remote Working: Include when allowing regular work from home or remote locations

6. Company Car: Include when providing a company vehicle

7. Training and Development: Include when offering specific professional development programs

8. Stock Options/Equity: Include when offering company shares or option plans

9. Language Requirements: Include when specific language skills are essential

10. Travel Requirements: Include when position involves regular business travel

What schedules should be included in a Labor Agreement?

1. Schedule 1: Job Description: Detailed description of role, responsibilities, and reporting lines

2. Schedule 2: Compensation Details: Breakdown of salary components and benefits

3. Schedule 3: Company Policies: Reference to or summary of key company policies

4. Schedule 4: Bonus Scheme Rules: Detailed terms of any applicable bonus or commission scheme

5. Schedule 5: IT and Equipment: List of provided equipment and usage policies

6. Appendix A: Code of Conduct: Company's code of conduct and ethical guidelines

7. Appendix B: Employee Handbook: Reference to or summary of employee handbook

8. Appendix C: Health Insurance Details: Information about health insurance coverage and options

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Switzerland

Document Type

Service Agreement

Cost

Free to use

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