Checking your employment contract: the ten points that matter

The Code of Obligations sets out the foundations; much of it is dispositive – that is, open to change, as long as mandatory law is not violated. Mandatory, for example, are the entitlement to at least four weeks of holiday, the obligation to continue paying salary and protection against abusive dismissal.

Check the contract in this order: parties and function, salary, working time, holidays, probation period and termination, expenses, social insurance, secondary employment, non-compete agreement, references to regulations.

Watch out for references: "The employer's regulations apply" is only binding if those regulations are available or accessible when the contract is concluded. Anyone who does not know them is signing on a wing and a prayer.

Salary is the employer's main obligation (Art. 322 CO). Check whether the salary is stated gross, whether a 13th month salary is owed (it is not required by law, but customary) and whether it is paid pro rata or in full.

Important for planning: with variable pay (bonus, commission) the contract should say how it is calculated and whether it falls due pro rata on termination as well. "Voluntary and revocable at any time" is legally possible – but then you must not count on the amount.

In the event of illness, continued salary payment applies under Art. 324a CO: depending on years of service, three weeks up to several months, unless daily sickness benefit insurance takes its place. If both are missing, the gap in the contract is a real risk.

Weekly working time is usually 40 to 42 hours for office staff; it must be set out in the contract. Pay particular attention to the overtime rules:

• Is overtime compensated with time off, paid out, or already covered by the salary?
• Is a surcharge of 25 percent agreed (Art. 321c CO), and does it also apply to management functions?
• Is there an all-in arrangement? It is permissible, but must be transparent and must not amount to a de facto circumvention of the working time rules.

On breaks and rest periods, the Labour Act applies with its special rules for office staff. If you find nothing about it in the contract, you should ask – not only after your first 60-hour month.

All employees are entitled to at least four weeks of holiday per year, and five weeks up to the completed 20th year of age (Art. 329a CO). Many employers grant more – then it is in the contract and must be honoured.

Also worth clarifying: what happens to untaken holiday on termination (payout?), how public holidays are treated (they differ by canton; paid in some cantons, in others only if work is required on the holiday), and whether there are paid days off for moving house, marriage or a death in the family.

Practically relevant for part-time work: holiday is counted in weeks, not days. Anyone working 80 percent has the same number of holiday weeks as full-time employees.

Without an agreement, the probation period is one month (Art. 335b CO) and can be extended to up to three months. During probation the notice period is seven days.

After probation, the statutory notice period is one month to the end of a month (Art. 335c CO), unless otherwise agreed. Longer periods may be agreed in the individual contract; they must be the same for both sides. "One month for the employee, three months for the employer" is not permissible.

With fixed-term contracts, the employment relationship ends without notice. If work simply continues after the end date, an open-ended relationship can arise from it – a detail many overlook.

The employer must provide the equipment needed for the work (Art. 327 CO) and reimburse the expenses incurred (Art. 327a CO). Check therefore:

• Is there an expense allowance for travel, meals or working from home?
• Is a company car or a public transport pass provided, and how is private use regulated?
• Who pays for further training that the employer requires?
• Is there a repayment clause for training costs? It must be reasonable and limited in time.

Flat allowances are convenient but often too low. Work out once what you actually advance per month – that is the best basis for negotiation.

AHV/IV/EO, unemployment insurance and accident insurance are mandatory and are deducted from the salary. Check whether daily sickness benefit insurance exists (80 percent of salary for 720 days is customary) and how high the BVG coordination deduction is – it determines which part of the salary is insured.

Two questions are always worth asking: who pays the premiums (employer and employee share) and from when cover applies. When you start a job in the course of a month, gaps can arise that nobody explains.

The duty of loyalty (Art. 321a CO) prohibits harming the employer – in particular through competing activity. A second job is not generally prohibited, but the contract may require you to report it or to obtain consent.

A non-compete agreement under Art. 340 CO is only effective if it is in writing, reasonable as to place, time and subject matter, and not contrary to public policy. Check the duration, the geographical scope and whether compensation is agreed.