How is payroll managed in Switzerland?

In Switzerland, with its 26 cantons, there are variations in employment regulations across different regions. For example, in Geneva, the minimum hourly wage is set at 23 CHF for all industries, and the maximum working week is limited to 50 hours. Overtime compensation is either paid at 12% above the regular pay rate or compensated as time off in lieu.

What are the key employment regulations?

In Switzerland, employees are entitled to sick pay, the extent of which varies based on their years of service. Some employers opt for a benefits insurance scheme, allowing employees to receive 80% of their salary for up to 2 years in case of illness. Maternity allowance is provided to employees who have contributed to the OASI (Old Age and Survivors Insurance) for at least 9 months before giving birth.

What should be considered when dismissing an employee?

In Switzerland, employers can terminate employment contracts without a significant reason, provided the reason is not discriminatory. Employees have the right to request the reason for their termination. It’s recommended to provide written notification of termination to avoid potential disputes.