Most professionals skim employment contracts. The offer is confirmed, the position is agreed, the start date is set — the contract feels like paperwork confirming a decision already made. In Switzerland, where specific clauses around non-competes, intellectual property, and termination timing carry financial consequences that surface years later, reading carefully before signing is among the most cost-effective legal diligence available.
The OR and GAV Framework
Swiss employment law is grounded in the Code of Obligations (Obligationenrecht, OR), which sets minimum standards that cannot be contracted away: maximum probation periods, minimum notice periods, mandatory accident insurance, and termination protections. Above these minimums, individual contracts can provide more favorable terms.
Many sectors are governed by a collective bargaining agreement (Gesamtarbeitsvertrag, GAV / Convention collective de travail, CCT). GAV provisions are legally binding even if your individual contract doesn't explicitly reference them — provided the agreement applies to your sector and employer. Typical GAV benefits above the OR floor include longer notice periods, additional vacation days, a defined 13th month salary, specific expense allowances, and sector-specific grievance procedures. Not knowing a GAV applies doesn't make it inapplicable.
Probation, Notice, and Termination
OR default probation: one month, with 7 days' mutual notice. By agreement, extendable to 3 months maximum. During probation, no unemployment insurance protection applies and termination is at will. After probation, notice periods govern. OR minimums: 1 month in year one, 2 months in years 2–9, 3 months from year 10 onward. Many professional contracts extend these — 3 months from day one is common, 6-month notice periods are not unusual at senior levels.
Longer notice periods cut both ways: they protect against abrupt termination but also obligate you to serve the employer. Swiss courts enforce notice periods. Garden leave requires explicit contractual provision — it doesn't apply automatically. After the probation period, Swiss law does not permit at-will termination. Dismissals must be non-abusive; notice is suspended during illness or accident; termination during maternity leave is prohibited. These protections are OR minimums and cannot be contracted away.
Non-Compete Clauses: What Survives Swiss Courts
Non-compete provisions in Swiss contracts are common and frequently overbroad. Swiss courts will enforce one only where it's justified by genuine access to trade secrets or client relationships, geographically limited to a reasonable scope, time-limited to typically 1–2 years maximum, and not so restrictive that it effectively prevents the employee from earning a livelihood in their field. Broad language — "no competition in any industry globally for five years" — doesn't survive judicial scrutiny.
Before signing, assess the clause against your realistic future career path. If it would cover your most likely next employers, negotiate a narrower scope: limit to named direct clients, specific named competitors, or defined product lines. Switzerland doesn't legally require financial compensation for enforced non-compete periods — but it can be negotiated, and it changes the cost-benefit calculation for the employer.
Expense Reimbursement and Benefits — the Detail That Matters Later
Swiss law requires employers to reimburse "necessary business expenses" — but without a written policy, "necessary" is contested territory in any dispute. A contract with specific expense categories, defined per diems for travel, and a clear mobile phone policy prevents disagreements later. Flat-rate expense allowances (Pauschalspesen) are common and tax-advantaged when structured to the Swiss tax authority's published approved amounts.
The BVG section deserves particular scrutiny. Employer contribution percentage, plan category, and the fund's administrative cost structure all affect long-term retirement capital accumulation. A Pensionskasse with high fees, over 30 years of contributions, produces a materially lower retirement outcome than a lean fund with the same nominal employer contributions. This isn't boilerplate. It's part of total compensation.