A Swiss employment agreement governs the relationship between employer and employee. Key clauses to get right: probation period (extend to 3 months), notice period (limit to 1 month), and IP assignment (ensure full transfer to the company). Always sign with wet-ink or qualified electronic signature.
Summary (TL;DR)
- Have a written agreement signed with wet-ink signatures.
- Extend the probation period to 3 months.
- Limit the notice period to 1 month and allow for termination with effect during the month.
- Have a proper IP assignment to ensure that all IP created by the employee is assigned to the company.
- Book a free call with us.
What it is and why it is important
An employment agreement governs the relationship between the company, as the employer, and the employee. Have a written agreement: The law provides rules that will automatically apply to the parties if nothing is otherwise provided. These rules mainly favour the employees. Therefore, it is important for the company to have a proper written agreement with its employees. Sign it with wet-ink signature: Many key clauses require the written form to be legally enforceable (e.g., extension of probation period, assignment of certain IP). This means that you must always sign an employment agreement with a wet-ink signature or a qualified electronic signature. An employment agreement includes the following topics:
| Topic | Importance |
|---|---|
| Position of the parties — A generic description is sufficient. Mention reporting lines and seniority. | Medium |
| Salary and bonus — Clearly define salary components and whether bonuses are discretionary. | High |
| Work location — Clarify office, remote work, and travel expectations. | Low |
| Term and termination — Define start date, probation period (up to 3 months), and notice period (ideally 1 month with effect during the month). | High |
| Work time and hours — Specify workload and working hours. | Medium |
| Vacation — Legal minimum is 20 days, common practice is 25. | Low |
| Intellectual property rights — Ensure all IP created is assigned to the company. | High |
| Confidentiality — Protect company know-how and business secrets. | Medium |
| Non-compete — Limit by time, geography, and scope. Must be enforceable. | Medium |
| Non-solicitation — Prevents poaching of employees or clients. | Medium |
| Penalty — Helps enforce key clauses like confidentiality. | Medium |
| Secondary occupation — Employees must inform and get approval. | Low |
| Employee data and access — Company may access communication systems if properly regulated. | Medium |
| Amendments — Allow updates to non-core elements without full re-signing. | Medium |
Jurisdiction: Usually tied to the employee’s place of work. Applicable law: Typically the law of the employee’s domicile.
What needs to be in there?
- Probation period: Extend to 3 months.
- Termination notice: 1 month with effect during the month.
- IP: Ensure full assignment to the company.
- Salary structure: Clearly define fixed vs variable.
- Expenses: Standardize reimbursement policies.
- Wet-ink: Always use valid signatures.
- Social contributions: Properly registered.
Why limit notice period to 1 month?
Example A: Standard law can lead to up to 3 months salary payout. Example B: Optimized clause reduces cost significantly.
- Use “termination during the month” clause.
- Alternatively use 2-month flexible notice.
- Always sign with wet-ink signatures.
FAQs
What should a Swiss employment agreement include?
Key elements: position, salary and bonus, probation period (up to 3 months), notice period (ideally 1 month), IP assignment, confidentiality, non-compete, vacation (min. 20 days, commonly 25), and work time/location.
Why should I extend the probation period to 3 months?
Swiss law allows up to 3 months. During probation, either party can terminate with 7 days’ notice. Extending to the maximum gives more time to assess the fit.
Why limit the notice period to 1 month?
Standard law can lead to up to 3 months salary payout. An optimized 1-month notice clause with termination during the month significantly reduces termination costs.
Do Swiss employment agreements need wet-ink signatures?
Yes. Key clauses like probation extension and IP assignment require written form. Always sign with wet-ink or qualified electronic signature to ensure enforceability.
How should IP be handled in a Swiss employment agreement?
Include a full IP assignment clause ensuring all intellectual property created by the employee is assigned to the company. This requires written form and is rated high importance.
How do I get this done?
Generate a standard agreement here. See tailored solutions here. Book a call here.
