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An indefinite employment contract is the cornerstone of permanent employment relationships in Switzerland, providing legal framework and security for both employers and employees. This contract type establishes an ongoing employment relationship without a predetermined end date, making it the most common form of employment agreement in the Swiss workplace.

When do you need this document?

You need an indefinite employment contract when hiring permanent employees for ongoing roles in your Swiss business. This applies whether you're a startup hiring your first employee, an established company expanding your team, or an international business setting up operations in Switzerland. The contract is essential for full-time positions, part-time permanent roles, and any employment relationship where you expect the employee to remain with your organization indefinitely. Swiss law requires written employment contracts for positions lasting more than one month or involving more than eight hours of work per week.

Key legal considerations

Several critical legal elements must be addressed in your indefinite employment contract. The probationary period, typically lasting one to three months, allows both parties to assess suitability before full employment obligations take effect. Notice periods for termination vary based on length of service, starting at one month during the first year and extending to three months after nine years of employment. Salary and benefits provisions must comply with Swiss minimum wage requirements where applicable and include mandatory social security contributions. Working hours must align with the Federal Act on Work in Industry, Trade and Commerce, limiting standard work weeks to 45 hours for office workers and 50 hours for industrial workers. The contract should also address data protection obligations under the Federal Act on Data Protection, particularly regarding employee personal information handling.

Legal requirements in Switzerland

Swiss employment law mandates specific provisions that must be included in indefinite employment contracts. Under the Swiss Code of Obligations, contracts must clearly identify both parties, specify the job position and duties, establish the start date, and outline compensation terms. The Federal Act on Gender Equality requires equal treatment provisions and prohibits discrimination based on gender. Accident insurance coverage under the Federal Act on Accident Insurance must be arranged, with employers typically covering premiums for occupational accidents and employees contributing to non-occupational coverage. Holiday entitlements must meet Swiss minimums of four weeks for employees over 20 and five weeks for younger workers. The contract should specify the applicable collective bargaining agreements if relevant to your industry, as these often supersede individual contract terms in areas like minimum wages and working conditions.