Individual employment contracts

Employers are required to provide employees with the key points of the employment contract in writing by no later than one month after the employee starts work.

In larger companies, it is recommended to have an employee handbook containing the most important employment provisions, as the employment contract itself only contains provisions on wages, notice period and special terms (e.g. non-competition clause). Employment contracts and employee handbooks must conform to the mandatory provisions of the Swiss Code of Obligations and the provisions of collective bargaining agreements, where applicable. Employee handbooks should not be confused with agreements between the employer and the works council, as practised in EU countries (and which do not exist in this form in Switzerland). However, industrial companies are required to establish “work rules” containing rules on occupational health protection and accident prevention. The employees or their representatives must be consulted before the rules are put into force.

Companies may include in the employment contract a non-competition clause for the duration of employment with the company and beyond. Through a non-competition clause, the employer prevents employees who leave the company from using special knowledge that they gained while working there in a way that provides competition for their former employer. In practice, demanding requirements are imposed on the wording and enforcement of such clauses. There is no mandatory provision for compensating employees for agreeing to such non-competition clauses. Non-competition clauses must:

• be in written form
• clarify the definition (location, area, client group); a general restriction is not sufficient
• specify duration; a maximum of three years is permitted