Key points at a glance
- An employment contract is valid even if only agreed verbally - but you must provide the key terms in writing no later than one month after the employment starts (Art. 330b of the Swiss Code of Obligations (CO)).
- The first month counts as a probation period; up to three months are possible if agreed in writing (Art. 335b CO).
- At least four weeks of vacation per year, five weeks for employees up to age 20 (Art. 329a CO).
- Before the first payday: register with the AHV (old-age and survivors' insurance) compensation office (Ausgleichskasse), accident insurance and, if applicable, a pension fund (Pensionskasse) - details in the guide Payroll in a small business.
The employment contract
As a rule, the law does not require any particular form for an employment contract (Art. 320 CO) - even a handshake will do. There is, however, a duty to inform: if the employment is for an indefinite period or lasts more than one month, you must inform the employee in writing no later than one month after the start (Art. 330b CO) of:
- the names of the contracting parties,
- the start date,
- the job title or role,
- the salary and any supplements,
- the weekly working hours.
If any of these terms change later, you must also notify the employee in writing within one month. The easiest way to meet this duty is a written employment contract signed by both of you. It should also cover the probation period, notice periods, vacation, any 13th-month salary and what happens in case of illness. Departures from the statutory rules - such as a longer probation period - are often only valid if agreed in writing.
Probation and notice periods
The first month of employment for an indefinite period automatically counts as the probation period. During this time, either party can give notice of seven days. By written agreement, the probation period can be extended to a maximum of three months; if the employee is absent due to illness or accident, it is extended accordingly (Art. 335b CO).
After that, the statutory notice periods apply, always to the end of a month (Art. 335c CO):
| Year of service | Notice period |
|---|---|
| 1st year of service | 1 month |
| 2nd to 9th year of service | 2 months |
| 10th year of service and later | 3 months |
Other notice periods can be agreed in writing; a period shorter than one month is only allowed under a collective labor agreement and only in the first year of service. Important: after the probation period, you may not give notice while the employee is unable to work due to illness or accident, for a certain period - 30 days in the first year of service, 90 days from the second to the fifth year of service, and 180 days after that (Art. 336c CO).
Vacation
Employees are entitled to at least four weeks of paid vacation every year, and to five weeks up to age 20 (Art. 329a CO). For part-time employees, the entitlement is pro rata. At least two weeks should be taken in a row (Art. 329c CO). As long as the employment lasts, vacation generally may not be replaced by cash payments (Art. 329d CO).
Pay during illness
If your employee is unable to work through no fault of their own, for example due to illness, you must continue to pay their salary for a limited time - provided the employment has lasted more than three months or was agreed for more than three months. In the first year of service, that is three weeks; after that, an "appropriately longer" period (Art. 324a CO). Exactly how long is determined by the courts using regional tables: the Bern, Zurich and Basel scales.
For a small business, a long illness can get expensive. That's why many take out daily sickness allowance insurance. It replaces the statutory continued payment of salary if this is agreed in writing and the benefits are at least equivalent (Art. 324a para. 4 CO).
Example: the first employee at an electrical business
Reto runs a small electrical business and hires Luca starting March 1, for an indefinite period, full time (100%). The written contract states the role, salary, workload, a one-month probation period, 25 vacation days and the statutory notice periods; Reto also takes out daily sickness allowance insurance. Before Luca's first day, Reto registers with the compensation office and takes out accident insurance. He keeps the signed contract, a copy of the AHV number and the insurance policies in the personnel file - which is also where all payslips (Lohnabrechnung) will go later.
Recording working time
If your business is subject to the Labor Act (ArG), you generally have to record your employees' working time (Art. 46 ArG, Art. 73 of Ordinance 1 to the Labor Act (ArGV 1), both in German). Under certain conditions, simplified recording is allowed (Art. 73b ArGV 1). It's best to check with your industry association or the cantonal labor inspectorate whether and how this applies to your business. SECO explains the rules and provides a checklist on its page on working time recording (in German).
Personnel file: what goes in
You may only process data about your employees that relates to their suitability for the job or is necessary to perform the employment contract (Art. 328b CO). So a personnel file contains the contract, payslips, salary certificates (Lohnausweis), insurance documents and doctor's notes - but not, for example, notes about their private life. Health data is sensitive personal data: store it so that only authorized people can access it.
Payslips are accounting vouchers and must be kept for 10 years (Art. 958f CO). Delete anything you no longer need (Art. 6 para. 4 of the Federal Act on Data Protection (FADP)). Read more about data protection in your business in the guide Data protection for small firms.
How it works in Easly
In Easly, hiring your first employee is a guided process - from onboarding and the contract to the first payslip:
- Onboarding with a checklist: Easly guides you through the steps, including registering with the AHV compensation office, accident insurance (UVG), occupational pension (BVG), family allowances, daily sickness allowance insurance, tax at source (Quellensteuer) and work permits - each with an explanation.
- Employment contract from the master data: start date, role, place of work, workload and weekly working hours, salary, 13th-month salary, vacation, the one-month probation period and the statutory notice periods go straight into the contract PDF - no retyping.
- Sign on screen or via link: You sign in Easly; your employee signs via a personal link that is valid for 30 days.
- Personnel file in one place: Easly automatically files the contract, payslips and salary certificates; you upload other documents yourself. Everything is stored encrypted.
- Keep track of policies: You store the policies for UVG, BVG, daily sickness allowance and family allowances and get a reminder before they expire.
Easly does not offer time tracking.
What Easly doesn't do for you
The signature in Easly is a simple electronic signature, not a qualified electronic signature. Where the law requires written form, for example for a longer probation period, you also sign by hand or with a qualified electronic signature.
Frequently asked questions
Does an employment contract have to be in writing?
No, as a rule an employment contract is valid without any particular form (Art. 320 CO). But you must provide the key terms - parties, start date, role, salary and weekly working hours - in writing no later than one month after the start (Art. 330b CO). Some departures from the statutory rules are only valid if agreed in writing.
How long can the probation period be?
Without an agreement, the first month counts as the probation period. A written agreement can extend it to a maximum of three months. In case of illness or accident, it is extended accordingly (Art. 335b CO).
How much vacation do I have to give?
At least four weeks per year, five weeks for employees up to age 20 (Art. 329a CO). For part-time employees, the entitlement is pro rata.
Is the signature in Easly legally valid?
Signing on screen or via link is a simple electronic signature, not a qualified electronic signature. It records that you both agreed, and when. Where the law requires written form, for example for an extended probation period or different notice periods, you also sign the printed contract by hand - or use a qualified electronic signature.
Information as of: see above. Sources: Swiss Code of Obligations (Art. 320, 324a, 328b, 329a, 329c, 329d, 330b, 335b, 335c, 336c and 958f CO), Labor Act (Art. 46 ArG) with Ordinance 1 (Art. 73 and 73b ArGV 1; both in German) and the Federal Act on Data Protection (Art. 6 FADP). Collective labor agreements and standard employment contracts may contain different rules. This article is not a substitute for legal advice.