What You Need to Know About Notice Periods, Annual Leave, and Overtime in Switzerland
Notice periods, a minimum of 4 weeks' annual leave, overtime compensation, and sick leave in Switzerland — the 2025–2026 rules explained clearly for Hungarian employees.
What laws govern employment relationships in Switzerland?
Two main laws affect most employees.
The first is the Code of Obligations (Obligationenrecht / OR, Code des obligations), which governs private-law employment contracts: termination, leave, wage payment, and the basics of overtime.
The second is the Labour Act (Arbeitsgesetz / ArG, Loi sur le travail), which sets maximum working hours, rest periods, and health protection requirements.
As a Hungarian citizen, you may work in Switzerland as an EU national under the Agreement on the Free Movement of Persons (FZA, 1999), and the same employment law rules apply to you as to Swiss employees. Your nationality does not put you at a disadvantage regarding notice periods, leave, or overtime.
Important: in many sectors, a collective labour agreement (Gesamtarbeitsvertrag / GAV, convention collective de travail) also applies, which may provide more favourable conditions than the statutory minimum. Always check whether a GAV applies to your sector.
How does termination work in Switzerland, and when does it take effect?
The notice period depends on how many years you have worked for the same employer. The statutory default values (OR 335c) are as follows:
Length of service | Notice period | Effective date |
|---|---|---|
During probation | 7 days | any day |
1st year of service | 1 month | end of month |
2nd–9th year of service | 2 months | end of month |
From 10th year onward | 3 months | end of month |
The notice period runs to the last day of the month. For example, if an employee in their 3rd year of service receives notice on 20 March, the 2-month period does not expire on 20 May but on 31 May, because full intervening months must be counted through to the end of the month.
In Switzerland, termination generally does not need to be justified, and is typically valid even if given verbally. However, written form is strongly recommended, and delivery should be verifiable (e.g. by registered letter). The other party may request written reasons (OR 335 par. 2).
The notice period may be modified by contract, but two limits apply:
After the first year, the notice period may not be shorter than one month (except in short-term cases set out in writing under a GAV).
The notice period must be the same for both parties must be given (OR 335a).
What constitutes abusive or prohibited termination?
A termination remains valid even if it is abusive, but it may give rise to an obligation to pay compensation. Abusive termination (missbräuchliche Kündigung, OR 336) applies, for example, when someone is dismissed on grounds of age, origin, trade union membership, or for asserting a legitimate claim. In such cases, compensation of up to 6 months' salary may be awarded.
The conditions for unjustified immediate (extraordinary) termination are governed by OR 337 — a "valid reason" is required.
What happens during the probationary period?
The statutory default length of the probationary period (Probezeit, période d'essai) is the first month, but it may be extended in writing to a maximum of 3 months (OR 335b).
During the probationary period, the notice period is 7 days, and notice may be given for any calendar day, not only the end of the month. If the employee is unable to work during the probationary period due to illness or accident, the probationary period may be extended by the corresponding duration.
Due to the short notice period, the probationary period is the time when an employment relationship can be terminated most quickly — as a Hungarian employee, it is worth bearing this in mind consciously, for example before signing a rental agreement or taking out a loan.
How much paid leave are you entitled to in Switzerland?
The statutory minimum is 4 weeks of paid annual leave (Ferien, vacances) (OR 329a). Employees who have not yet reached the age of 20 are entitled to 5 weeks per year.
Many employers and GAV (collective labour agreements) provide more than the minimum — typically 5 weeks, and in some cases 6 weeks for older employees. The specific entitlement is set out in the employment contract or the collective agreement.
A few practical rules:
The timing of leave is determined by the employer, but the legitimate interests of the employee must be taken into account (OR 329c).
At least two consecutive weeks of leave must be available to be taken each year.
As a general rule, unused leave cannot be paid out in cash during the employment relationship (OR 329d) — payment is generally only made upon termination of the employment relationship, if the leave can no longer be taken.
Swiss public holidays (Feiertage) vary by canton. Only 1 August (the national holiday) is a mandatory public holiday at the federal level; the rest are regulated by the cantons, meaning that the calendars of an employee in Zürich and one in Genève may differ.
How does overtime work in Switzerland?
Two distinct concepts must be distinguished, as different rules apply to each.
Overtime (Überstunden) — hours worked beyond the contractual working hours
The Überstunden (heures supplémentaires) work performed beyond the contractually agreed hours but below the statutory maximum (OR 321c).
As a general rule, a 25% supplement must be paid.
The parties may agree in writing that overtime is compensated with equivalent time off without any supplement.
It may also be stipulated in writing that no supplement is payable — this is common in managerial and senior positions.
Overtime beyond the statutory maximum (Überzeit)
Überzeit (travail supplémentaire) refers to work exceeding the maximum weekly working hours under the Labour Act (ArG):
45 hours/week in industrial establishments, for office workers, and in technical and sales roles,
50 hours/week for all other employees.
Überzeit must mandatorily be compensated with a 25% supplement or — with the employee's agreement — with equivalent time off. For office and technical workers, the wage supplement may be waived within 60 hours per year under certain conditions if compensated with time off. This rule is complex and should be verified on a case-by-case basis.
An important note for Hungarian readers: contractual clauses stating that "the gross weekly salary covers all overtime" do not automatically override the statutory Überzeit protections. In the event of a dispute, it is advisable to keep written records of working hours.
What rights apply in cases of illness, maternity, and paternity?
Illness and continued salary payment
If an employee is unable to work through no fault of their own (illness, accident), the employer must continue paying the salary for a limited period (Lohnfortzahlung, OR 324a), provided the employment relationship has lasted at least 3 months or was concluded for a period of more than 3 months.
The law requires at least 3 weeks of continued salary payment in the first year, with the duration increasing with length of service. In practice, most cantons apply the so-called Bernese, Basel, or Zurich scale, which specifies the exact number of days. Many employers instead take out a daily sickness allowance insurance (Krankentaggeldversicherung), which typically pays 80% of the salary for up to 720 days — the specific terms are set out in the employment contract.
Protection against dismissal during illness
In the event of illness or accident, the employer may not validly give notice during the protected period (Sperrfrist, OR 336c):
30 days in the 1st year of service,
90 days in years 2–5,
180 days from the 6th year onwards.
If notice has already been given and the employee subsequently falls ill, the notice period is "suspended" for the duration of the protected period and resumes thereafter.
Maternity Leave
The maternity leave (Mutterschaftsurlaub) 14 weeks (98 days), at 80% of salary, funded through the income replacement scheme (Erwerbsersatzordnung / EO, allocations pour perte de gain / APG), subject to a daily maximum. For 8 weeks after the birth, the mother's employment is partially prohibited, and protection against dismissal applies for 16 weeks following the birth.
Paternity / Other Parent Leave
The leave for the other parent (formerly paternity leave) 2 weeks (10 working days), which may be taken within 6 months of the birth, also at 80% of salary, financed through the EO.
How does the type of contract affect termination and leave?
The type of contract fundamentally determines how the employment relationship ends.
Open-ended contract (unbefristeter Arbeitsvertrag): the notice periods described above apply. This is the most common form.
Fixed-term contract (befristeter Arbeitsvertrag): it ends automatically on the expiry date, without notice. Ordinary termination is generally not possible unless the contract expressly provides for it. If a fixed-term contract is tacitly continued after its expiry, it becomes open-ended.
Agency / temporary work (Temporärarbeit): subject to separate regulations and often the Swissstaffing / Temporärarbeit GAV (collective labour agreement), with shorter notice periods at the start of employment.
Holiday entitlement is pro-rated under both types of contract: for shorter periods of employment, a proportional share of the 4 weeks applies.
What misconceptions and practical issues affect Hungarian employees?
"A Swiss employer is required to give reasons for dismissal." Not so. Providing reasons is not, as a rule, a condition of validity, although they must be given in writing upon request.
"Verbal notice of termination is not valid." As a general rule, it can be valid, so verbal notice of termination must also be taken seriously. Written form is nevertheless recommended for the sake of proof.
"Unused holiday is always paid out." During an ongoing employment relationship, holiday must be taken as leave; monetary compensation typically only arises upon termination of the employment relationship.
Hungarian social insurance and coverage: In Switzerland, mandatory health insurance (Krankenkasse, KVG) is not automatically arranged through your employer — you must take out a policy yourself within 3 months of moving to Switzerland. When starting employment in Switzerland, you should also ensure that your Hungarian social insurance status is properly settled.
Pension contributions: the Swiss AHV/AVS and second pillar (berufliche Vorsorge / BVG) contributions paid during employment can be coordinated with Hungarian pension entitlements under EU rules. Upon termination, the second-pillar capital cannot be withdrawn in cash if you are moving to an EU/EFTA member state (such as Hungary) and will continue to be subject to mandatory pension insurance there — in that case, the capital is transferred to a vested benefits account (Freizügigkeitskonto).
Sources
ch.ch – The official information portal of the Swiss authorities — https://www.ch.ch/en/
ch.ch – Working in Switzerland — https://www.ch.ch/en/work/
arbeit.swiss – Employment and job search information — https://www.arbeit.swiss/
Code of Obligations (Obligationenrecht / OR), in particular Articles 319–362
Labour Act (Arbeitsgesetz / ArG) and its implementing ordinances
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In Brief
In Switzerland, the fundamental rules governing employment are set out in the Code of Obligations (OR) and the Labour Act (ArG), and these apply in full to Hungarian employees as well. The notice period ranges from 1 to 3 months depending on years of service, the statutory minimum paid annual leave is 4 weeks per year, and overtime is generally subject to a 25% supplement. In many sectors, a collective labour agreement (GAV) may provide more favourable conditions than the statutory minimums.
Key Takeaways
- The length of the notice period is determined by years of service (1–3 months) and always expires on the last day of a calendar month — this is worth bearing in mind before signing a rental agreement or taking out a loan, especially during the probationary period, when the notice period is just 7 days.
- Check whether a collective labour agreement (GAV) applies in your sector, as it may provide more favourable notice periods, additional leave entitlements, or higher supplements than the statutory minimums.
- Notice of termination in Switzerland can be valid even when given verbally, so any notice — whether oral or written — must be taken seriously; written notice delivered by registered post is strongly recommended for the sake of proof.
- Unused annual leave cannot generally be converted into a cash payment during an ongoing employment relationship — leave must be taken; monetary compensation is typically only possible upon termination of the contract.
- In disputed overtime cases, it is advisable to keep a written record of working hours, as a contractual clause stating that the gross salary covers all overtime does not automatically override the statutory Überzeit protections.
- When starting employment in Switzerland, compulsory health insurance (Krankenkasse) must be arranged independently within 3 months of taking up residence, and any outstanding matters relating to Hungarian social security coverage must also be resolved.
Frequently Asked Questions
How long is the notice period in Switzerland, and when exactly does it expire?
The statutory notice period depends on years of service: 1 month during the first year of service, 2 months from years 2 to 9, and 3 months from year 10 onwards. The notice period always expires on the last day of a calendar month — for example, if notice is given on 20 March and the notice period is 2 months, it expires not on 20 May but on 31 May. During the probationary period, the notice period is just 7 days and may expire on any calendar day.
Is it mandatory to give reasons for termination in Switzerland?
No, notice of termination does not generally need to include reasons, and it may even be given verbally. However, the other party may request the reasons in writing (OR Art. 335 para. 2), in which case they must be provided. For the sake of proof, written notice delivered by registered post is strongly recommended.
How much paid annual leave are employees entitled to in Switzerland?
The statutory minimum is 4 weeks (20 working days) of paid annual leave per year. Employees who have not yet reached the age of 20 are entitled to 5 weeks per year. Many employers and collective labour agreements (GAV) provide more than this — typically 5 weeks. The specific entitlement is set out in the employment contract or the applicable sectoral collective agreement.
How does overtime pay work in Switzerland?
Two distinct concepts must be distinguished in Switzerland. Überstunden refers to hours worked beyond the contractual working hours but within the statutory maximum: these are generally to be compensated at a 25% supplement, although the parties may agree in writing to compensate them with time off in lieu instead. Überzeit refers to hours worked beyond the statutory weekly maximum (45 or 50 hours), for which a 25% supplement is mandatory, or — with the employee's consent — time off in lieu may be granted.
What protection does an employee have in the event of illness in Switzerland?
In the event of illness or accident, the employer may not validly terminate the employment contract during the protected period (Sperrfrist): this is 30 days during the first year of service, 90 days from years 2 to 5, and 180 days from year 6 onwards. In addition, the employer must continue to pay the employee's salary for a limited period — for at least 3 weeks during the first year of service. Many employers take out daily sickness benefit insurance (Krankentaggeldversicherung), which typically pays 80% of the salary for up to 720 days.
As a Hungarian employee, do the same rights apply to me in Switzerland as to Swiss workers?
Yes. Under the Agreement on the Free Movement of Persons (FZA, 1999), as a Hungarian national you are entitled to work in Switzerland as an EU citizen, and all Swiss employment law provisions — notice periods, annual leave, overtime, and sick leave protections — apply to you in exactly the same way as to Swiss employees. Your nationality does not place you at any disadvantage in these areas.
What happens to my Swiss second-pillar (BVG) pension savings if I move back to Hungary?
If you move back to an EU/EFTA member state — such as Hungary — and remain subject to compulsory pension insurance there, your second-pillar capital cannot be withdrawn as a cash lump sum. In that case, the capital is transferred to a vested benefits account (Freizügigkeitskonto). Swiss AHV/AVS (old-age and survivors' insurance) and second-pillar entitlements can be coordinated with Hungarian pension entitlements under EU coordination rules.
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