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Local Employment Contract for Switzerland

Local Employment Contract Template for Switzerland

A Swiss local employment contract is a legally binding agreement that establishes an employment relationship under Swiss law. The contract complies with the Swiss Code of Obligations (OR) and Swiss Labor Law (ArG), incorporating mandatory provisions regarding working conditions, social security, and employee protections. It details essential terms including position, compensation, working hours, benefits, and termination provisions while ensuring compliance with Swiss employment regulations, cantonal requirements, and relevant collective agreements where applicable. The document serves as the primary reference point for both employer and employee regarding their rights and obligations within the employment relationship.

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What is a Local Employment Contract?

The Local Employment Contract is the standard document used to establish employment relationships in Switzerland, designed to comply with Swiss employment law requirements including the Swiss Code of Obligations and Labor Law. This document is essential when hiring employees in Switzerland, whether for permanent or fixed-term positions, and must be provided to all employees regardless of their level or role. It contains mandatory provisions required by Swiss law, including terms relating to salary, working hours, vacation entitlement, and notice periods. The contract serves both to protect the interests of both parties and to ensure compliance with Swiss employment regulations, social security requirements, and data protection laws. It should be used for any new hire in Switzerland or when converting existing employment arrangements to align with current Swiss legal requirements.

What sections should be included in a Local Employment Contract?

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

2. Background: Brief context of the employment relationship and reference to any prior agreements

3. Definitions: Key terms used throughout the contract

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

5. Start Date and Duration: Commencement date and whether the contract is fixed-term or permanent

6. Probationary Period: Length of the probation period and applicable notice periods during probation

7. Work Location: Primary workplace location and any flexibility arrangements

8. Working Hours: Regular working hours, break periods, and overtime arrangements

9. Salary and Benefits: Base salary, payment schedule, and mandatory benefits including social security contributions

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

11. Illness and Accident: Sick leave provisions and accident insurance coverage

12. Confidentiality: Obligations regarding company confidential information

13. Data Protection: Treatment of personal data and privacy requirements

14. Notice Period: Notice periods for contract termination by either party

15. Applicable Law: Reference to Swiss law and jurisdiction

16. Signatures: Execution block for both parties

What sections are optional to include in a Local Employment Contract?

1. Bonus Arrangements: Include when the position includes variable compensation or performance bonuses

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

3. Intellectual Property: Include for positions involving creative work or innovation

4. Home Office Arrangements: Include when remote work is permitted

5. Company Car: Include when a company vehicle is provided

6. Training and Development: Include when specific training obligations or development programs are part of the role

7. International Travel: Include when the role requires regular international travel

8. Language Requirements: Include when specific language skills are essential for the role

9. Stock Options/Share Schemes: Include when employee is eligible for company share programs

10. Collective Agreement References: Include when a collective bargaining agreement applies to the position

What schedules should be included in a Local Employment Contract?

1. Job Description: Detailed description of role responsibilities and requirements

2. Compensation Details: Breakdown of salary components and benefits

3. Company Policies: Reference to key company policies applicable to the employment

4. Bonus Plan Rules: Details of any applicable bonus or commission schemes

5. IT and Communications Policy: Rules regarding use of company IT systems and communication tools

6. Expense Policy: Guidelines for business expense reimbursement

7. Code of Conduct: Company's code of conduct and ethical guidelines

8. Home Office Guidelines: Detailed rules and arrangements for remote working if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Switzerland

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions







































Clauses






































Relevant Industries

Financial Services

Manufacturing

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Relevant Teams

Human Resources

Legal

Finance

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Marketing

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Customer Service

Administration

Product Development

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Relevant Roles

CEO

Managing Director

Department Head

Senior Manager

Project Manager

Software Engineer

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Research Scientist

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Product Manager

Legal Counsel

Technical Support Specialist

Business Analyst

Account Manager

Digital Marketing Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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