50,3% of the Swiss population voted “yes” to the Initiative against “mass immigration”, with almost 6 out of 10 Swiss citizens taking part in the referendum. The Initiative also states that “all opposite international treaties must be reviewed within 3 years of the vote” and that is where the debate actually lies, since it means that the Free Movement of Persons Agreement in itself shall be reviewed and most likely reconsidered.
Social Security Basically, the Swiss employer is fully liable to social security contributions in respect of its employees. This system, however, only applies to resident employers and non-resident enterprises having a permanent establishment in Switzerland. The contributions are borne fifty-fifty by both employer and employees. However, the employer contributes insurance premiums for occupational accidents and […]
Brief Description of Employees’ and Employers’ Associations The Swiss Federation of Trade Unions is the umbrella body for 16 trade unions in the areas of industry and construction, and is Switzerland’s largest employees’ organisation. A second umbrella grouping is Travail Suisse, with 13 member organisations. The Swiss Employers Association is the umbrella body of about […]
Grounds for Termination As a principle, both parties to an employment contract may terminate the employment agreement at any time, subject to either the statutory or contractual notice period; without the need to fulfill any statutory grounds for termination. The party issuing the termination must however provide a written explanation of the termination upon the […]
Employees’ Rights in Case of a Transfer of Undertaking If a transaction qualifies as a (partial) business transfer, the employment relationships existing at the time of the transfer (including the ones under notice) are automatically transferred including all rights and obligations as of the date of transfer, unless the employee objects to the transfer. If […]
Salary Salary is usually paid at the end of the calendar month deducting all applicable social security contributions and withholding taxes (if any). Swiss law explicitly provides that the salary paid to employees must be stated in a pay slip. Maximum Working Week In the majority of Swiss companies, the normal weekly working hours under […]
Minimum Requirements Material requirements Under Swiss law, an employment contract is a contract whereby the employee is obliged to perform work in the employer’s service for either a fixed or an indefinite period of time, and the employer is obliged to pay salary either based on time periods or based on the work performed. As […]
On March 3, 2013, Swiss voters overwhelmingly backed the popular initiative „against rip-off salaries“ – also known as the Swiss „Fat Cat“ referendum (hereinafter the „Initiative“). The aim of the Initiative which was launched by a medium sized businessman and politician, Mr Thomas Minder, is (1) to avoid excesses of executive pay, (2) ban corporate […]
Q&A by André Lerch, employment lawyer in Zurich.