Switzerland
Extension of the maximum duration of compensation for reduced working hours (so-called “RHT”)
Impact date: 1 August 2025 – 31 July 2026. On 14 May 2025, the Federal Council determined to extend the maximum duration for reduced working hours compensation from 12 to 18 months, effective 1 August 2025 until 31 July 2026. This extension responds to ongoing economic uncertainties and a projected rise in unemployment to 2.8% for 2025 and 2026. The measure aims to provide companies with greater planning security, helping them retain employees amid a sluggish economy impacted by international trade tensions, particularly affecting the machinery, electrical equipment, and watchmaking industries. Additional administrative relief measures for short-time work are also under consideration.
Employer implications/action needed Employers facing reduced business activity can benefit from compensation for short-time work for up to 18 months instead of 12. This provides a longer safety net to manage labor costs and improved workforce retention, without resorting to layoffs. Employers may apply for the indemnity for reduced working hours if eligible.
Employer risk N/A
Telework
Impact date: 1 August 2025 – 31 July 2026 On 21 May 2025, the Federal Council endorsed most proposals from the National Council’s Economic Affairs and Taxation Committee to relax regulations on working and rest hours related to telework. The draft law acknowledges digital advancements while explicitly enshrining the right to disconnect during daily rest periods and Sundays. The Council recommends limiting the scope to employees with significant control over their working hours, removing the formal written agreement requirement, and extending the right to disconnect to all workers. Additionally, adaptations to the Code of Obligations are proposed to define telework and reinforce the right to disconnect. The Economic Affairs Committee will now review the Federal Council’s opinion.
Employer implications/action needed N/A
Employer risk N/A
Diplomat employer immunity and domestic workers (case law)
Impact date: 25 September 2025 Diplomatic agents’ civil immunity can block access to courts under Article 6 ECHR. Domestic workers face heightened vulnerability when employed by diplomats, making legal protection crucial. In this case, a non-national domestic worker sought compensation for wrongful dismissal, and the cantonal court rightly denied the diplomat’s claim to immunity under Article 31(1)(c) VCDR.
Employer implications/action needed N/A
Employer risk N/A
Compensation for reduced working hours
Impact date: 1 November 2025 – 31 July 2026 The Social Security and Public Health Committee of the Council of States has approved an urgent Bill granting the Federal Council, until the end of 2028, the authority to extend the maximum duration of compensation for reduced working hours from 18 to 24 months. On 8 October 2025, the Federal Council made use of the extended authority recently granted to it to extend the maximum duration for receiving compensation in the event of reduced working hours (“RHT”) to 24 months. The amended ordinance entered into force on 1 November 2025 and will remain in effect until 31 July 2026.
Employer implications/action needed N/A
Employer risk N/A
New rules for live-in workers
Impact date: 1 December 2025 The Federal Council has introduced special rules for live-in caregivers employed through staff leasing companies, via a modification of Ordinance 2 to the Labor Act. The new provisions regulate working and rest hours, prohibit 24-hour single-person assistance, and set clear requirements for night/Sunday work, on-call duties, and time recording.
Employer implications/action needed Staff leasing companies must adapt their working conditions to comply with the new framework.
Employer risk N/A
Link Federal Council link
Third-country worker quotas maintained
Impact date: 1 January 2026 On 19 November 2025, the Federal Council decided to maintain the 2026 quotas for skilled workers from third countries, as well as for service providers from the EU, EFTA, and the UK. This ensures Swiss companies can fill vacant positions while complying with the Ordinance on Admission, Residence, and Employment. The unchanged ceilings provide legal clarity and predictability for employers amid ongoing labor shortages.
Employer implications/action needed Administrative sanctions, civil liability, reputational risk
Employer risk N/A
Link Federal Council Link
Minimum wage in Geneva
Impact date: 1 January 2026 Currently, the gross hourly minimum wage in Geneva is CHF 24.48. As of 1 January 2026, it will increase to CHF 24.59.
Employer implications/action needed Any employer whose employees are subject to this minimum wage must adjust salaries upwards.
Employer risk Administrative sanctions, civil liability and reputational risk.
Link DFAE link
Federal Act on Accident Insurance
Impact date: Awaited. The Council of States approved the draft amendment and the deadline for a referendum is set for 15 January 2026. The Social Security and Health Committee of the Council of States has approved a draft amendment to the Federal Act on Accident Insurance (LAA). This reform allows for the granting of daily allowances in the event of relapses or late-onset consequences resulting from an accident not covered by the LAA and occurring before the age of 25.
Employer implications/action needed N/A
Employer risk N/A
Link Parliament website
Harmonization of benefits under the loss of earnings scheme
Impact date: Awaited. The Council of States adopted a decision amending the Bill with deliberations scheduled in the National Council. The Social Security and Health Committee of the Council of States unanimously decided to consider a draft amendment to the Federal Act on Income Compensation for Loss of Earnings. The proposal would extend entitlement to operating and childcare allowances—currently limited to individuals performing services—to all categories of beneficiaries. Child allowance, the function of which has effectively been replaced by family allowances, is to be abolished. Additional measures include: extending maternity benefits in cases of prolonged maternal hospitalization: ensuring the granting of the other parent’s allowance even in the event of the child’s death: and making the care allowance available as soon as a child requires hospitalization for at least four days.
The amendment has not yet been adopted and remains under review by the Committee.
Employer implications/action needed N/A
Employer risk N/A
Link Parliament website
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