Labour and workforce are a very important aspect of the economy of a country, whether

developed or developing. What distinguishes a developed country from a developing country

is the Gross Domestic Product (GDP) per capita, which is a tally of the total number of goods
and services produced in a country in one year divided by the population of that country. This
economic indicator does not only show the financial muscle of a country, but of a single
individual, to measure the standard of living of a country, and how prosperous a country feels
to its citizens. Since we are talking about standard of living, jobs take the centre stage, and
that is why a country needs a Labour Policy for the protection of the rights of employees,
employers and their businesses (Investopedia, 2019).

The Labour Law of Switzerland (Gross and Buhler, 2019)

Switzerland has the second highest GDP per capita in the world, which shows how high their
standard of living is. Here is an outlook of the Labour Policy in Switzerland.

The labour policy divided into 9 subsections

1. Terms and Conditions of employment

1.1 Sources of the employment law

 Code of Obligations
 The Labour Act
 The terms agreed in the contract of employment. Where appropriate, the application
of mandatory collective bargaining agreements.
 Additional legislation:
- Participation Act
- Gender Equality Act
- Data Protection Act
- The Merger Act
- Ordinance against Excessive Compensation.

1.2 Types of worker protected by employment law and how different

worker types are distinguished
 Swiss Law considers everyone equal, same rules apply for all types of employees.
 There are additional provisions for specific employees, such as pregnant women.
 Statutory rules regarding overtime will not apply to employees in senior management
 Only self-employed people are not subject to labour law
 A contract does not deem you self-employed, but running your own business is what
entails being called self-employed: you must be in control
 If one works under the instruction or conditions of someone, they are considered an
employee even if the business is theirs

1.3 Forms of contract of employment

 Contracts agreement do not have to be only in writing, but, certain terms need to be
in writing and duly accomplished by both parties to be valid and binding, especially if
they deviate from the statutory default rules which include terms regarding notice
periods, overtime, probationary periods, post-contractual non-compete obligations.
 Upon that, employee must be provided with the following employment particulars in
writing:
- Names of employer and employee
- Starting date of employment
- Function (job description)
- Compensation
- Weekly working hours

1.4 Implied terms into contract of employment

 There are various implied terms which govern the employment relationship.
 Most of them are outlined in the Code of Obligations. Some terms are mandatory;
others will only apply if the parties do not agree otherwise.
 Terms might be implied based on past practice. For example, if a bonus has been
paid for years, the employee might have a contractual entitlement to such payments.

1.5 Minimum employment terms and conditions by law that employers

must observe

 There are statutory minimum employment terms and conditions, e.g., at least four
weeks’ holiday per year and a notice period of not less than one month.
 There is no statutory minimum salary. However, mandatory collective bargaining
agreements provide for a minimal pay in certain industries.

1.6 The extent to which terms and conditions of employment are agreed
through collective bargaining. Does bargaining usually take place at
company or industry level?
 There are collective bargaining agreements in certain industries, e.g., construction,
hotels/restaurants, the pharmaceutical industry, etc.
 Some collective agreements were declared mandatory for the entire industry by the
government.
 Bargaining usually takes place at industry level.

2. Employee Representation and Industrial Relations

2.1 Rules relating to trade union recognition

 There is no statutory recognition process as in other jurisdictions.
 In general, trade unions have to be separate legal entities with the main aim to
improve conditions of employment
 They have to be independent from employers and other third parties and the
membership for employees has to be voluntary

2.2 Rights of trade unions

 There are no specific statutory rights that employers have to be aware of.
 Collective bargaining agreements might provide for some rights of trade unions. In
particular, to enforce the terms of collective bargaining agreements (e.g., minimal
pay), joint commissions (consisting of trade unions’ members and employers’
representatives) might be established.
 Such commissions are entitled to get access to certain documents like payroll data.
 Further, there are joint commissions consisting of trade union members, employers’
representatives and governmental authorities which shall ensure that employment
terms will not unduly worsen in certain industries. These official joint commissions
have the right to review employment conditions and they might recommend the
government to declare existing collective bargaining agreements compulsory for the
whole industry or to issue minimal terms for certain functions (such minimal terms
currently apply for domestic work only on a national level).

2.3 Rules governing a trade union’s right to take industrial action

 There is a constitutional right to take industrial action, but there are no statutory rules.
 Precedents suggest that a strike should be considered as an action of last resort.
 Collective bargaining agreements will usually restrict the right to strike.
 It is discussed whether further conditions apply, in particular that strikes need to be
supported by a trade union and that the strike has to aim at a matter that can be dealt
with in a collective bargaining agreement.

2.4 Are employers required to set up works councils? If so, what are the
main rights and responsibilities of such bodies? How are works
council representatives chosen/appointed?
 All businesses with more than 50 employees have to set up a works council by
request of the employees.
 A fifth of the workforce (or 100 employees) can ask for a vote; if the majority of the
voting employees support the request, elections have to take place.
 The election will be organised by the employer and employees jointly.
 Only a limited number of companies have set up a works council in Switzerland.

2.5 In what circumstances will a works council have co-determination

rights, so that an employer is unable to proceed until it has obtained
works council agreement to proposals?
 Works councils only have information rights and they have to be consulted before
certain decisions (regarding work safety, mass dismissals, transfer of a business or
pension plans) are made.
 Further, sections 6.9 and 6.10 with regards to the social plan in case of a mass
dismissal also apply

2.6 How do the rights of trade unions and works councils interact?
 There is no established way of interaction. In any event, only a limited number of
companies have works councils.

2.7 Are employees entitled to representation at board level?

 No, employees are not entitled to representation at board level.

3. Discrimination

3.1 Are employees protected against discrimination? If so, on what

grounds is discrimination prohibited?
 Protection against discrimination is based on the general duty of the employer to
protect the employee’s rights of personality.
 The employer must not discriminate against an individual employee without objective
reasons.
 However, employees are only protected against discrimination by employers, if such
discrimination resulted in a violation of their rights of personality.
 Within that limited scope, the employees are protected against discrimination
regardless of the basis of the discrimination, i.e., age, disability, race, political belief,
religion or otherwise.
 The Federal Disabled Equality Act only directly protects employees of the federal
government; hence, disabled persons are protected within the framework of the
general protection of their rights of personality.
 There is, however, an increased protection in connection with building laws.
 There is a broader protection against discrimination because of gender.
 The Federal Gender Equality Act provides for detailed substantive and procedural
rules that shall protect employees against discrimination because of their gender.
 Further, the international agreements between the European Union (and its Member
States) and Switzerland on the free movement of persons, provide for equal
treatment of employees who are nationals of a contracting party.
 Such persons may not, by reason of their nationality, be treated differently from
employees who are nationals of the other contracting party as regards conditions of
employment and working conditions, especially as regards pay or dismissal.

3.2 What types of discrimination are unlawful and in what

circumstances?
 The law protects against any sort of direct or indirect discrimination.
 Discrimination is defined as treating an employee worse than others.
 There is no protection against the (arbitrary) better treatment of other employees.
 In addition, even arbitrary discrimination by the employer may be tolerated unless the
discrimination results in the violation of the employee’s rights of personality, in
particular because the discrimination reflects a disregard of the employee’s
personality.
 The Gender Equality Act protects employees against any kind of direct or indirect
discrimination based on gender, including discrimination because of civil status,
family situation and pregnancy.
 The protection exists for the entire employment relationship, from the negotiations on
a new employment to retirement (and retirement benefits) and termination. It includes
protection against unfavourable working conditions, lower salary and sexual
harassment.

3.3 Are there any defences to a discrimination claim?

 There is no unlawful discrimination if employers are able to establish that the unequal
treatment does not result in the violation of the employee’s right of personality, i.e.,
that there are valid reasons to treat one individual employee differently or rather that
some employees are treated better than others (and not that individual employees
are discriminated against), or that the different treatment is so minor that it does not
result in a violation of the rights of personality.
 The Gender Equality Act sets much more stringent standards, and any discrimination
that is based on gender, whether directly or indirectly, is generally prohibited.

3.4 How do employees enforce their discrimination rights? Can

employers settle claims before or after they are initiated?
 A violation of the prohibition against discrimination is a violation of statutory
employment law and the employment contract.
 Employees have to file a lawsuit with the courts that have jurisdiction for employment
matters; a mandatory conciliation proceeding is part of the proceeding.
 Employees can freely dispose of the claims made in discrimination proceedings, and
claims are frequently settled before or after proceedings are initiated.

3.5 What remedies are available to employees in successful

discrimination claims?
 The main remedy in discrimination proceedings is monetary compensation.
 Employees also have a right to an order of the court prohibiting continuation of
discrimination or preventing a threatened discrimination.
 In gender discrimination cases in connection with an alleged discriminatory dismissal,
the court can order the provisional re-employment of an employee and eventually
cancel the termination and order definitive re-employment.
 This is not possible in all other discrimination cases in connection with alleged
discriminatory dismissal, where the only available remedy is monetary compensation.
 3.6 Do “atypical” workers (such as those working part-time, on a fixed-
term contract or as a temporary agency worker) have any additional
protection?
 There is special legislation on employment placements designed to protect
temporary workers that are placed by professional agencies.
 In addition, certain collective bargaining agreements have special rules for part-time
workers, or workers that are on call.
 Finally, legislation protects posted workers.

4. Maternity and Family Leave Rights

4.1 Duration of Maternity Leave

 A female employee is generally entitled to 14 weeks of paid statutory maternity leave
following the child’s birth.
 In addition to the provisions on maternity leave, there are other rules on pregnancy
and status following birth.
 These rules provide, in particular, that an employer shall not terminate the
employment relationship during pregnancy and during a period of 16 weeks following
birth.
 In addition, an employee must not work during a period of eight weeks following birth,
and she is only required to work during an additional period of eight weeks if she
agrees to do so.
 Similarly, the employee is only required to work during pregnancy and during the
nursing period if she agrees to do so.
 Moreover, collective bargaining agreements and the individual employment
agreements often contain additional rules which further improve the position of the
employee during pregnancy and following birth.

4.2 What rights, including rights to pay and benefits, does a woman
have during maternity leave?
 During the 14 weeks’ statutory maternity leave, and provided the employee meets
certain conditions, the contractually agreed remuneration is replaced by a
compensation of 80 per cent of the last average remuneration.
 The compensation is presently (2018) capped at CHF196 (196 Swiss Franc) per day.
 The employee receives the compensation directly from a social security fund or from
the employer (who can then recover the payments from the social security fund).
 It is unclear whether employers have to top up payments to a certain extent.
 The rules on maternity leave do not cover the issue of whether an employee
continues receiving the contractually agreed salary if she is not working during
pregnancy and following birth (but for the period of 14 weeks covered by the
maternity leave rules).
 If the employee cannot work for medical reasons, the right to remuneration and its
duration will depend on a number of factors, including the duration of the employment
and the contractual agreement in the employment contract.
 In addition, employers are regularly insured against the risk of employees not
working during pregnancy for medical reasons.
 To the extent insurance coverage exists and meets statutory standards, the
insurance’s payments replace the employer’s obligation to pay remuneration.

4.3 What rights does a woman have upon her return to work from
maternity leave?
 Maternity leave does not change the terms of the employment relationship.
 Hence, the employee will have the same rights and obligations upon her return to
work as before the maternity leave.
 She will usually have to continue the same job as before birth, and is not entitled to
reduce her working time, unless otherwise agreed with the employer.

4.4 Do fathers have the right to take paternity leave?

 Employers must grant time-off to fathers with a new child, but this is limited to a
couple of days.
 There are no statutory rights to longer paternity leave, but some collective bargaining
agreements and individual agreements provide for a right to take paternity leave.

4.5 Are there any other parental leave rights that employers have to
observe?
 Parents have a statutory right to stay away from work for three days to take care of
sick family members.
 4.6 Are employees entitled to work flexibly if they have responsibility for
caring for dependants?
 No, employees who have responsibilities for caring for dependants are not entitled to
work flexibly.

5. Business Sales

5.1 On a business sale (either a share sale or asset transfer) do

employees automatically transfer to the buyer?

 If a business unit is transferred in an asset deal, the contracts of employment

assigned to the business will automatically transfer from the seller to the buyer.
 Employees can object to the transfer. An objection results in a termination of the
employment relationship after the expiry of the statutory notice period.
 A share sale does not affect the employment agreements, because the identity of the
employer will not be altered.
 Hence, employees will still be employed by the same company under the same
contracts.

5.2 What employee rights transfer on a business sale? How does a

business sale affect collective agreements?
 Employees will work for a different employer after the transfer, but under the same
employment contract.
 Hence, all current terms of the employment contracts will transfer with the
employees.
 The buyer has to comply with collective bargaining agreements for a period of one
year after the transfer, unless such agreements will expire or will be terminated
earlier.
 In some industries, mandatory collective bargaining agreements apply.
 A share sale does not trigger a transfer.

5.3 Are there any information and consultation rights on a business

sale? How long does the process typically take and what are the
sanctions for failing to inform and consult?
 In the context of a business sale by means of an asset deal, employees (or the works
council, if there is one) have to be informed about the reasons for the transfer and its
legal, economic and social implications for the employees.
 If measures that might affect employees are considered (e.g., dismissals, change of
terms and conditions of employment agreements), a consultation is required.
 In principle, the consultation period should not be less than two weeks (longer
periods might be required in certain circumstances), and a few additional days will be
needed to prepare proper information and to consider any proposals made during the
consultation.
 The law does not provide for specific sanctions for failing to inform and consult in the
case of an asset deal.
 However, if the Merger Act applies, employees have the right to block the
commercial register if the employer failed to duly inform/consult. This can delay the
closing of the transaction.
 No specific information or consultation rights apply in case of a share sale.

5.4 Can employees be dismissed in connection with a business sale?

 Yes, but a business need might be required for the dismissal, and the dismissal
should not be a means to circumvent the automatic transfer of the employment.
 Consultation has to be completed before notice is given.
 Mass dismissals will trigger further consultation rights and notification obligations.

5.5 Are employers free to change terms and conditions of employment

in connection with a business sale?
 Employees have to be consulted regarding changes of terms and conditions in
connection with a business sale (see section 5.2 above).
 There are no further specific restrictions. Hence, the same rules apply as for an
amendment of employment agreements that is not in connection with a business
sale: employers can unilaterally offer a change in terms and conditions, but they have
to take the applicable notice periods into account, i.e., no employee has to accept
new terms before the contractual notice period has expired.
 After the expiry of the notice period, the employee can either continue to work under
the new conditions or quit the employment.
 Amendments to the detriment of employees only (e.g., cuts of base salaries, increase
in working hours) might be deemed to be abusive if the employer is unable to provide
objective reasons for the change.
 Employees who will not accept the new conditions and, therefore, quit the
employment after the notice period might be able to claim an indemnity of up to six
months’ salary (see section 6.3).
6. Termination of Employment

6.1 Do employees have to be given notice of termination of their

employment? How is the notice period determined?

 Employees have to be given notice of termination of their employment.

 The length of the notice period is agreed in the employment contract, subject to
statutory rules on minimum length and equality of the notice periods for notice to be
given by the employer and employee.
 An employment relationship can be terminated with immediate effect for cause.

6.2 Can employers require employees to serve a period of “garden

leave” during their notice period when the employee remains employed
but does not have to attend for work?
 Yes, and it is general practice to put employees on garden leave during their notice
period in certain industries, such as the financial service industry and for senior
managers.
 A ‘right to work’, which excludes the employer’s right to put an employee on garden
leave, only exists under very special circumstances, in particular for jobs that require
the employee to continuously work in order to keep certain qualifications (pilots who
may lose their licence, artists, etc.).

6.3 What protection do employees have against dismissal? In what

circumstances is an employee treated as being dismissed? Is consent
from a third party required before an employer can dismiss?
 An employee is treated as being dismissed if either party to the employment contract
has given notice of termination, and the employment relationship ends at the end of
the notice period.
 No third-party consent is required for a dismissal.
 Employees are protected against abusive dismissal. Such abuse exists, for example,
if: notice of termination is given because the employee raises a bona fide claim
arising out of the employment agreement; notice of termination is given because the
employee exercises a constitutional right; notice is only given to prevent the coming
into existence of a claim arising out of the contract; or notice is given for a reason
that is inherent to the personality of the other party (gender, race, origin, nationality,
age, etc.).
 An abusive dismissal will be effective, but the employee is entitled to compensation
(see below, section 6.5).
 In addition, the employer shall not give notice of termination during protected periods.
 Such protection against dismissal exists while the employee is on military or civil
service or a foreign aid project, or while the employee is totally or partially
incapacitated because of a sickness or accident (the latter protection period is limited
from 30–180 days, depending on years of service).
 In addition, protection against dismissal exists during pregnancy and for a period of
16 weeks following birth.
 A notice of termination given during such a protected period is null and void.

6.4 Are there any categories of employees who enjoy special protection
against dismissal?
 Whilst employees are all treated alike, certain rules will only protect specific
categories of employees (e.g., pregnant women, etc.).
 Further, there is a (dischargeable) presumption that the dismissal of a member of the
works council is abusive.

6.5 When will an employer be entitled to dismiss for: 1) reasons related

to the individual employee; or 2) business related reasons? Are
employees entitled to compensation on dismissal and if so how is
compensation calculated?
 Swiss law is governed by the principle that both the employer and the employee have
the right to give notice of termination for any reason.
 No special reason is required.
 The dismissal must not be abusive, however (see above, section 6.3).
 Employees are generally not entitled to compensation on dismissal.
 A rule on mandatory severance payments for employees who are more than 50
years of age and have worked more than 20 years for the same employer has
become practically defunct because payments made by the employer to the pension
plan can be regularly deducted from the severance payment.
 The employee is entitled to a compensation of up to six monthly salaries if the
dismissal was abusive.
 6.6 Are there any specific procedures that an employer has to follow in
relation to individual dismissals?
 There are no specific procedures that an employer is obligated to follow in relation to
individual dismissals.
 Collective bargaining agreements or individual agreements frequently state that the
notice must be in writing or must even be served by registered mail.

6.7 What claims can an employee bring if he or she is dismissed? What

are the remedies for a successful claim?
 All claims regularly arising out of the employment contract become due upon
termination of the employment relationship.
 It is disputed whether the employer and employee can agree that certain claims (in
particular claims arising out of deferred bonus schemes) are only due a certain
period after termination.
 Apart from claims arising because a dismissal is abusive (see above, question 6.5) or
for unjustified termination without notice, there are no other claims that an employee
can bring to challenge a dismissal.

6.8 Can employers settle claims before or after they are initiated?
 In case of a true settlement: yes. However, unless in the context of a genuine
settlement, the employee may not waive mandatory claims arising out of the
employment relationship during the employment and before one month after the end
of the employment.

6.9 Does an employer have any additional obligations if it is dismissing

a number of employees at the same time?
 The employer must consult with the employees before a final decision on the
dismissals is made, if the dismissal is considered a ‘mass dismissal’ (i.e., dismissal
within a period of 30 days of 10 employees [for businesses with 20–99 employees],
or 10 per cent of the employees [for businesses with 100–299 employees], or more
than 30 employees [for larger businesses]).
 In addition, the local labour office must be informed of the dismissals.Further,
companies with more than 250 employees have to negotiate a social plan with a
union, a works council or the employees if they intend to dismiss at least 30
employees.
 6.10 How do employees enforce their rights in relation to mass
dismissals and what are the consequences if an employer fails to
comply with its obligations?
 The mass dismissal will be considered abusive if the employer has not properly
consulted with the employees.
 The employees have a claim for payment of a penalty of up to two monthly salaries.
If the employer fails to inform the local labour office, the dismissal will not become
effective.
 In case the parties cannot agree on a required social plan (see above, section 6.9),
an arbitral tribunal will establish the plan.

7. Protecting Business Interests Following Termination

7.1 What types of restrictive covenants are recognised?

 Non-compete covenants are recognised by the law.

 All types of post-employment restrictions on the employee are regularly considered
non-compete covenants and their enforceability is tested according to the rules
established for non-compete covenants.
 Based on current case law, however, covenants related to the non-solicitation of
employees are unlikely to be enforceable.

7.2 When are restrictive covenants enforceable and for what period?
 Non-compete covenants must be agreed in writing.
 The covenant is only enforceable if the employee had access to information on the
employer’s customers or to business secrets.
 In addition, the covenant is only binding if the use of the information obtained by the
employee could seriously harm the employer.
 Further, any covenant will become void if the employer gave notice without valid
reason for which the employee is responsible, or if the employee terminated the
employment for a valid reason for which the employer is responsible.
 Finally, the restriction must be reasonably limited with regard to its duration, the place
where it should apply and the type of operation covered.
 7.3 Do employees have to be provided with financial compensation in
return for covenants?
 Payment of financial compensation is not a requirement but increases the chances
that a covenant can be enforced.

7.4 How are restrictive covenants enforced?

 In case of a violation of the covenant, the employer can ask for financial
compensation for the loss suffered.
 The contractual clauses often provide for a liquidated damages clause.
 In addition, the employer can ask for a court order to prohibit the employee from
continuing the competing activity if the non-compete covenant expressly mentions
such a right of the employer.
 The courts weigh the interests of the employer and the employee and may order the
employee to stop the competing activity if the non-compete covenant is found to be
enforceable.

8. Data Protection and Employee Privacy

8.1 How do employee data protection rights affect the employment

relationship? Can an employer transfer employee data freely to other
countries?

 The employer may handle data concerning the employee only to the extent that such
data concerns the employee’s suitability for his or her job or is necessary for the
performance of the employment contract.
 Such data must have a close connection to the employment, and any gathering of
data must be strictly proportionate to its purpose.
 Gathered data may only be used for its initial purpose and must be protected against
unauthorised handling by third persons.
 As a matter of principle, the employee must be aware of any data gathering and of its
purpose, and consent to it.
 The same holds true for any monitoring activities by the employer.
 The transfer abroad of employee data must respect the principles explained above.
 In addition, Swiss law takes into consideration whether a transfer would seriously
jeopardise the personality rights of the concerned employee. This would, in
 particular, be the case if, from a Swiss law perspective, there is no legislation in the
foreign country that can guarantee an appropriate level of protection.
 The Federal Data Protection and Information Commissioner keeps a list of foreign
countries that are deemed to provide an appropriate level of protection; this list may
be viewed on the Commissioner’s website.
 If there is no foreign legislation that can guarantee an appropriate protection,
employee data may only be transferred abroad under certain circumstances, for
example, after the employee has given his or her consent or if the disclosure takes
place within the same legal entity or company, or between legal entities or
companies of a corporate group, provided that the entities and companies concerned
have committed themselves to certain minimal data protection rules.

8.2 Do employees have a right to obtain copies of any personal

information that is held by their employer?
 Every employee is in principle entitled to get unlimited access to all data that has
been collected in his or her regard.
 However, the employer may restrict, deny or postpone access in case there is a legal
exception or if he or she can show preeminent own interests or interests of third
persons not to (fully) grant the requested access.
 In this case, the employer must disclose the applicable limitation and explain its
reason to the employee.
 The employee can exercise the right of access without preconditions; in particular, he
or she does not need to show a particular interest.
 The right of access is exercised in writing and is free of charge. In general, the
employer has 30 days to respond in writing (and with photocopies), provided the
employee does not agree to another proceeding.

8.3 Are employers entitled to carry out pre-employment checks on

prospective employees (such as criminal record checks)?
 Yes, employers may carry out pre-employment checks on prospective employees.
 However, these checks require the knowledge and consent of the employee; they
must have a close connection to the employment and be proportionate.
 As the case may be, the checks may concern licences, certificates and non-compete
covenants.
 If material to the employment, they may involve extracts from criminal records,
statements from the debt collection office and statements concerning the employee’s
state of health.

8.4 Are employers entitled to monitor an employee’s emails, telephone

calls or use of an employer’s computer system?
 To the extent that the employment falls under the Labour Act, monitoring
mechanisms are not permitted if they are directed at the employee’s behaviour.
 However, they may be permitted if they pursue other aims, for example, security or
controlling the proper use of the work infrastructure and working time.
 Monitoring mechanisms need to be codified in internal regulations and the latter
communicated to the employees.
 In general, an employer will only be able to monitor peripheral data (such as the point
in time of the communications or interactions, their length, and the involved
connections).
 Monitoring the actual content of communications requires outstanding interests,
which the employer will not easily be able to explain.
 As regards telephone communications, in principle, they are protected by criminal
law.

8.5 Can an employer control an employee’s use of social media in or

outside the workplace?
 An employer may control social media in the workplace if it is necessary for the
performance of the employment contract and proportionate.
 Under these conditions, an employer may block social media completely.
 In contrast, it is rather unlikely that an employer is able to show a legitimate interest
in controlling an employee’s use of social media outside the workplace.
 However, this may for instance hold true for ideological enterprises

9. Court Practice and Procedure

9.1 Which courts or tribunals have jurisdiction to hear employment-

related complaints and what is their composition?

 The 26 cantons are responsible for organising the court system.

 Hence, depending on the place of jurisdiction, either a labour court or an ordinary
district court will hear employment-related complaints.Labour courts will often be
composed of a legally qualified district judge and two lay judges, one elected on
behalf of the employees/trade unions and the other on behalf of the employers.
 If there is no labour court one, or a panel of three, (usually) legally qualified judges
will hear the case.

9.2 What procedure applies to employment-related complaints? Is

conciliation mandatory before a complaint can proceed? Does an
employee have to pay a fee to submit a claim?
 There is a mandatory conciliation hearing before a claim can be filed.
 Thereafter, the proceedings start with an exchange of briefs, unless the amount in
dispute is below CHF30,000 and it is decided that proceedings should be oral only.
 Courts are usually prepared to outline their preliminary view of the case during the
first hearing.
 The majority of cases are settled based on such preliminary assessments.
 There are no court costs if the value of the dispute is below CHF30,000; some
cantons will apply a higher threshold.
 In all other cantons, the claimant has to advance the likely costs.
 The amount of the court costs depends on the value in dispute and the canton where
the claim is filed; they can be considerable.
 If the claim is upheld, the defendant will be ordered to reimburse the paid costs to the
claimant.
 In addition, the losing party will be ordered to compensate the other party for its
lawyers’ fees (payment made according to a schedule, not actual fees paid).

9.3 How long do employment-related complaints typically take to be

decided?
 The conciliation proceeding should take a few weeks only.
 Thereafter, a straightforward claim in an oral proceeding (i.e., the amount in dispute
is below CHF30,000) should take less than six months.
 Other cases might be pending for one to two years.
 9.4 Is it possible to appeal against a first instance decision and if so how
long do such appeals usually take?
 There is a right to appeal within 30 days after the judgment has been handed down.
 In most cantons, a panel of three judges of the court of appeal will hear the appeal.
 The Swiss Supreme Court will review decisions of courts of appeals in employment
matters if the amount in dispute exceeds CHF15,000.
 Appeals are limited to points of law.

Bibliography

Gross, B. and Bühler, G. (2019). Employment & Labour Law 2019 | Switzerland |
ICLG. [online] International Comparative Legal Guides International Business
Reports. Available at: https://iclg.com/practiceareas/employment-and-labour-laws-
andregulations/switzerland [Accessed 9 May 2019].

Investopedia. (2019). Top 25 Developed and Developing Countries. [online]

Available at: https://www.investopedia.com/updates/top-developingcountries/
[Accessed 9 May 2019].