What do you need to know about Swiss employment contracts and probationary periods?

What types of employment contracts exist in Switzerland?

In Switzerland, you will typically encounter three basic types of employment contract:

1. Open-ended contract (unbefristeter Arbeitsvertrag): This is the most common type. It has no expiry date and the employment relationship continues until notice is given. Most office, industrial, and service-sector positions operate under this form.

2. Fixed-term contract (befristeter Arbeitsvertrag): This has a specific end date. It terminates automatically upon expiry — no notice is required. Important: if the employer continues to employ you in practice after the expiry date, the contract converts to an open-ended one under Article 334 of the OR.

3. On-call / framework contract (Abrufarbeit): No guaranteed working hours are provided; the employer calls the employee in as needed. This arrangement may seem unusual from a Hungarian perspective — it is particularly common in hospitality, logistics, and seasonal work. Note: under Article 319(2) of the OR, if someone works regularly under such an arrangement, courts may classify it as a standard employment relationship even if the contract states otherwise.

Hungarian–Swiss difference: In Hungary, the Labour Code (Mt.) sets out in detail what an employment contract must contain. In Switzerland, the OR prescribes far fewer mandatory elements — the parties are free to agree on almost everything. This offers flexibility, but it also means that anything left out of the contract can easily be interpreted in the employer's favour.

What should you watch out for before signing an employment contract?

Mandatory and recommended elements

Under the OR, an employment contract is valid even if made verbally — but that does not mean you should rely on a verbal agreement. Always insist on a written contract.

A well-drafted Swiss employment contract should contain the following elements:

A separate note on the non-compete clause

Many Hungarian employees sign this without fully understanding it. Under Article 340 of the OR, a non-compete clause is only enforceable if: (1) the employee had access to the client base or business secrets, and (2) the restriction does not cause disproportionate hardship. The maximum duration is 3 years. If the clause is too broad, a Swiss court may reduce its scope — but this comes at the cost of litigation.

Probationary Period in Switzerland: How Long Is It and What Rules Apply?

The Basic Rule

Under Article 335b of the OR (Code of Obligations), the default length of the probationary period (Probezeit) is one month. It can be extended to a maximum of three months in writing — either in the employment contract or in the applicable GAV (collective labour agreement). A probationary period longer than three months is not valid, even if it is written into the contract.

Termination During the Probationary Period

During the probationary period, either party may terminate the employment relationship with 7 days' notice, effective on any day — it does not need to fall at the end of a month. This is a sharp contrast to termination outside the probationary period.

A Real-Life Example: Péter Kovács starts working for a logistics company in Zürich. His contract specifies a 3-month probationary period. During the first month, he realises the role is not what was promised. He gives notice on 10 February — by 17 February, he no longer needs to come in. In Hungary, termination during a probationary period would take effect immediately; in Switzerland, the 7-day notice period is mandatory.

Illness and the Probationary Period

If an employee falls ill during the probationary period, the probationary period is automatically extended by the number of days missed (Article 335b, paragraph 3 of the OR). However, there is an important distinction: there is no protection against dismissal (Sperrfrist) during the probationary period in the event of illness. This means that your employer can still terminate your contract with 7 days' notice even if you are currently on sick leave.

Notice Periods: How Are They Structured in Switzerland?

The OR Default

If the contract does not stipulate otherwise, Article 335c of the OR prescribes the following notice periods:

What does "to end of month" mean?

This is one of the most common misunderstandings. If you hand in your notice on 15 February and the applicable notice period is 1 month, your employment ends on 31 March — not 15 March. The notice period starts from the first day of the following month and ends on the last day of that month.

Variations in the contract and the GAV

The parties may agree on a longer notice period — but a shorter one is only permitted during the probationary period, or where a GAV allows it. Many Swiss employment contracts stipulate a 3-month notice period from the very first year — this is entirely legal and common practice, particularly for more senior positions.

Hungarian–Swiss difference: In Hungary, the notice period under the Labour Code starts at 30 days and increases with length of service, but the employer typically grants a release period during which the employee does not work. In Switzerland, employees are generally expected to work through the entire notice period — however, the employer may choose to release them from the obligation to work (Freistellung).