FTC regulated: Yes

Valid reasons for FTC use: no limitation

Remarks

However, existence of safeguards.
1) According to Art. 334 CO, if a fixed-term contract is tacitly renewed, it is deemed concluded for an indefinite duration.
2) Art. 2, al 2 Civil code on fraud has been interpreted as preventing the use of "chain contracts" when not justified by any objective reason and aiming at circumventing the terms and conditions of dismissals prescribed by law or the application (case law of the Federal Tribunal).

Maximum number of successive FTCs: no limitation

Remarks

However, existence of safeguards.
1) According to Art. 334 CO, if a fixed-term contract is tacitly renewed, it is deemed concluded for an indefinite duration.
2) Art. 2, al 2 Civil code on fraud has been interpreted as preventing the use of "chain contract" when not justified by any objective reason and aiming at circumventing the terms and conditions of dismissals prescribed by law or the application (case law of the Federal Tribunal).

Maximum cumulative duration of successive FTCs: no limitation

Remarks

However, existence of safeguards.
1) According to Art. 334 CO, if a fixed-term contract is tacitly renewed, it is deemed concluded for an indefinite duration.
2) Art. 2, al 2 Civil code on fraud has been interpreted as preventing the use of "contrats en chaîne" when not justified by any objective reason and aiming at circumventing the terms and conditions of dismissals prescribed by law or the application (case law of the Federal Tribunal).

% of workforce under FTC: 13.3

Remarks

Source: Eurostat, annual average for 2009.
The figure refers to the percentage of employee with a contract of limited duration (= temporary job) of total number of employee aged 15-74 years.
Eurostat data are based on the following definition:
"A job may be considered temporary if employer and employee agree that its end is determined by objective conditions such as a specific date, the completion of a task or the return of another employee who has been temporarily replaced (usually stated in a work contract of limited duration). Typical cases are: (a) persons with seasonal employment; (b) persons engaged by an agency or employment exchange and hired to a third party to perform a specific task (unless there is a written work contract of unlimited duration); (c) persons with specific training contracts."

Maximum probationary (trial) period (in months): 3 month(s)

Remarks

Art. 335b(2) CO.

Obligation to provide reasons to the employee: Yes

Remarks

The Swiss CO distinguishes between two categories of individual dismissals:
1) Ordinary dismissal ("congé") by one of the party with a notice period:
Written justification must be provided upon request by the other party (art. 335 CO).

2) Termination by one one the party with immediate effect:
Written justification must be provided upon request of the other party (art. 337 (1) CO).

Valid grounds (justified dismissal): none

Remarks

The employment contract can be terminated by either party provided that notice period requirements are complied with.
No list of valid grounds is provided. However, this does not result in a total freedom to terminate the contract: it must be understood in light of the existence of prohibited grounds. In addition, the CO states that dismissal ("congé") should not constitute an abuse of right (art. 336 CO).

For Termination with immediate effect (no notice) fair reasons are requested. (art. 337 (1) CO)

Prohibited grounds: marital status, pregnancy, maternity leave, family responsibilities, filing a complaint against the employer, temporary work injury or illness, race, colour, sex, sexual orientation, political opinion, social origin, nationality/national origin, age, trade union membership and activities, disability, performing military or civil service, exercise of a right, state of health, conviction or failure to disclose a conviction

Remarks

Amongst those prohibited grounds, only "trade union activities", "performing Swiss military service or civil service", "exercise of a constitutional right" and "solely frustrate the formation of claims of the other party arising out of the employment relationship" are specifically mentioned in Art 336 CO concerning unfair dismissal.

However, art. 336 (1) a) CO refers to "quality inherent to the personality of the other party, unless such quality relates to the employment relationship or significantly impairs cooperation within the enterprise".
This should be read in the light of Art. 8 of the Swiss Constitution that specifically establishes a general prohibition based in particular on grounds of origin, race, gender, age, language, way of life, religious, ideological, or political convictions or because of a physical, mental or psychological disability.

See Art. 336c (1) b) for temporary (work) injury or illness. Only additional safeguards (timeframe) during which dismissal is not possible are provided. This ground could constitute cause of dismissal if it impairs cooperation within the enterprise.

Workers enjoying special protection: workers' representatives, pregnant women and/or women on maternity leave, workers with a long period of service

Remarks

*No dismissal of pregnant women and women on maternity leave: art. 336c (1) c) CO
* Workers with an important length of tenure: higher protection with respect to severance allowance: art. 339c CO.
* Workers' representatives: constitutes an abusive termination the dismissal of an employee during the exercise of a mandate as employees' representative unless the employer demonstrates a justified motive for dismissal: art. 336 (2) b) CO.

Notification to the worker to be dismissed: written

Remarks

However, according to Art. 335 (2) CO, the party giving notice should state the reason for terminating employment in writing if requested by the other party.
The same rule applies in case of dismissal with immediate effect : art. 337 CO.

Notice period:

Remarks

1) For ordinary dismissals:
According to art. 335c CO, the general rule on the notice period is the following:
*1 month during the first year of service;
*2 months between 2 and 9 years of service;
*3 months over 9 years of service.

These timeframes can be modified by written agreement, collective agreement but shall not be less than 1 month.
Exceptions to this rule are permitted only during the first year of service and if set by a collective agreement (art. 335c (2) CO).

2) Specific rules apply to FTC:
No notice period is prescribed except for FTC concluded for up to 10 years (art. 334 (1) CO).
For FTC concluded for more than 10 years, a notice period of 6 months should be respected by either party (art. 334 (2) CO).

tenure ≥ 6 months:

  • All: 1 month(s).

tenure ≥ 9 months:

  • All: 1 month(s).

tenure ≥ 2 years:

  • All: 2 month(s).

tenure ≥ 4 years:

  • All: 2 month(s).

tenure ≥ 5 years:

  • All: 2 month(s).

tenure ≥ 10 years:

  • All: 3 month(s).

tenure ≥ 20 years:

  • All: 3 month(s).

Pay in lieu of notice: No

Notification to the public administration: No

Notification to workers' representatives: No

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Definition of collective dismissal (number of employees concerned): Collective dismissals are those made by the employer within a period of 30 days for reasons which are not related to the personality of the workers and affecting the following numbers of workers:
1) at least 10 workers in undertakings employing between 20 and 100 workers;
2) at least 10% of the workforce in undertakings employing between 100 and 300 workers
3) at least 30 workers in establishments employing at least 300 workers.

Remarks

Art. 335d CO.

Prior consultations with trade unions (workers' representatives): Yes

Remarks

Art. 335f CO.

Notification to the public administration: Yes

Remarks

Art. 335g CO.

Notification to workers' representatives: Yes

Remarks

Art. 335f CO.

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Priority rules for collective dismissals (social considerations, age, job tenure): No

Employer's obligation to consider alternatives to dismissal (transfers, retraining...): Yes

Remarks

335 f 2) CO: the employer must allow the workers' representatives to formulate proposals aiming at avoiding dismissals or mitigating their adverse effects.

Priority rules for re-employment: No

Severance pay:

Remarks

No general statutory severance pay or redundancy payment scheme. However, upon termination of the contract by either parties, a worker is at least 50 years old and has 20 or more or more years of service with the same employer is entitled to a long service payment ("indemnité à raison de longs rapports de travail")(art. 339c CO).
As a minimum, this payment should amount to 2 months wages and shall not exceed 8 months: art. 339c (1) &(2) CO. However, it may be reduced in part or cancelled if the employee terminates his contract without proper justification, if the employer summarily dismiss him for valid reasons or of if the payment of this amount would result in difficulties for the employer (art. 339c (3) CO).

tenure ≥ 6 months: 0 month(s)

tenure ≥ 9 months: 0 month(s)

tenure ≥ 1 year: 0 month(s)

tenure ≥ 4 years: 0 month(s)

tenure ≥ 5 years: 0 month(s)

tenure ≥ 10 years: 0 month(s)

tenure ≥ 20 years: 0 month(s)

Redundancy payment:

tenure ≥ 6 months: 0 month(s)

tenure ≥ 9 months: 0 month(s)

tenure ≥ 1 year: 0 month(s)

tenure ≥ 2 years: 0 month(s)

tenure ≥ 4 years: 0 month(s)

tenure ≥ 5 years: 0 month(s)

tenure ≥ 10 years: 0 month(s)

tenure ≥ 20 years: 0 month(s)

Notes / Remarks

Notes

No general statutory severance pay or redundancy payment scheme.
However, upon termination of the contract by either parties, a worker is at least 50 years old and has 20 or more or more years of service with the same employer is entitled to a long service payment ("indemnité à raison de longs rapports de travail": art. 339c CO).
As a minimum, this payment should amount to 2 months wages and shall not exceed 8 months: art. 339c (1) &(2) CO. However, it may be reduced in part or canceled if the employee terminates his contract without proper justification, if the employer summarily dismiss him for valid reasons or of if the payment of this amount would result in difficulties for the employer (art. 339c (3) CO).

Compensation for unfair dismissal - free determination by court: No

Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method): 1) Ordinary dismissal constituting an abuse of rights:
- Compensation awarded by the judge cannot exceed 6 months' wages.
2) Dismissal with immediate effect, when there is no fair reason:
- In addition to the amount the worker would have earned if the notice period had been observed, the judge may award compensation which cannot exceed 6 months' wages.

Remarks

1) Ordinary dismissals constituting an abuse of rights:
art. 336a 2 CO.
2) Dismissals with immediate effect in the absence of fair reason: art. 337c CO.

Reinstatement available: No

Preliminary mandatory conciliation: No

Competent court(s) / tribunal(s): ordinary courts

Remarks

According to Art. 343 CO, the procedure is to be conducted at a cantonal level. Depending on the canton, cases are either heard by a civil court or by a labour court.

Existing arbitration: Yes