Hire an employee

Not only business start-ups hiring employees for the first time, but also small and medium-sized companies face many questions when drawing up an employment contract.

It is true that the employment contract is basically regulated by the Swiss Code of Obligations (OR). However, the parties to the contract have a relatively large amount of leeway when it comes to drafting it. 

A well-drafted employment contract helps to regulate mutual requirements and wishes before the start of an employment relationship and to avoid later disputes. Employers should pay particular attention to the following points in the employment contract:

1. form of the contract

Although the individual employment contract is not legally subject to any formal requirements and can also be agreed orally, it should be concluded in writing. Oral subsidiary agreements are also not recommended.  These should be included in the contract in writing in appropriate clauses.

2. job title and area of responsibility

The job title should adequately reflect the employee’s role in the company and clearly define his or her tasks and responsibilities. This is because the position in the company determines what services the employee is required to provide and whether the employer may assign additional activities. The larger the scope of duties, the greater the flexibility that the superior can demand in case of doubt.

3. place of work

The contract of employment must include the place where the work is habitually carried out. The law also allows the indication of several places or one area. In the case of a company with several locations, this should be taken into account in the contract, so that the employer can require the employee to move between the different company locations. In the case of travel-intensive jobs, the willingness to take business trips and the extent of the trips should be recorded in writing.

4. remuneration, bonus and other benefits

The employment contract should list the remuneration and all other claims to which the employee is entitled or promised in the salary negotiations. In addition to the salary, these include allowances (overtime, shift work, etc.), special payments (Christmas bonus, holiday pay), contributions to the company pension scheme, company cars or local transport tickets, stock options, capital-forming benefits or bonus payments.

5. working hours

The weekly working time for employees in industry, for office staff, technical staff and sales staff in large retail businesses may not exceed 45 hours. For all other employees a maximum weekly working time of 50 hours applies. Possible deviations, such as the compulsory assumption of overtime, working overtime or shift, on-call and weekend work should be documented.

6. prohibition of competition

The prohibition of competition under the employment contract prohibits your employee, after termination of the employment relationship, from competing for a third party or as a self-employed person with his former employer. A non-competition clause is quickly signed before the start of employment, but is often ineffective in practice. In order to prevent your employee from competing with his former employer after leaving your company, the non-competition offer for your employee must be agreed in writing and correctly formulated.