Switzerland
Minimum salary (case law)
Impact date: 21 March 2025 A medical institute based in Geneva failed to comply with the cantonal minimum wage requirements between 2020 and 2022, particularly with respect to several individuals employed under trainee or temporary contracts. Despite multiple requests from the Cantonal Labour Authority, the company did not remedy the situation. It was unable to demonstrate that the individuals designated as trainees were in fact completing internships as part of a formal educational program and were therefore not regular employees. An administrative fine of CHF 25,000 was ultimately imposed and upheld by the Federal Supreme Court.
Employer implications/action needed Employers must pay at least the minimum salaries to their trainees unless they are in fact completing internships (e.g. as part of a formal educational program).
Employer risk Administrative fine and retroactive payment of minimum salary.
Wage protection
Impact date: 21 March 2025 The Swiss Federal Council has adopted a package of fourteen measures aimed at ensuring wage protection, as part of broader negotiations with the European Union. 13 of these measures were agreed upon by the social partners and the cantons, while the Federal Council proposed a fourteenth to complement them.
The measures aim to maintain existing collective labour agreements by adapting quorum requirements, strengthening legal protections for domestic companies under mandatory collective agreements, and improving protection against dismissal for elected employee representatives. The focus is on companies posting workers from the EU, while Swiss businesses are not subject to significant new obligations.
Employer implications/action needed Employers must ensure they comply with the measures adopted by the Swiss Federal Council.
Employer risk Administrative fine, reputational risk, increased risk of litigation.
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
Collective labor agreements
Impact date: Awaited (the consultation ran until 1 May 2024). The report on the results of the consultation procedure has not yet been issued. This amendment to the law is still pending due to the consultation of the various competent authorities. The Federal Council has consulted on the draft amendment to the law extending the scope of collective labor agreements which would give precedence to extended collective labor agreements on cantonal standard employment contracts. This would mean that the minimum salaries provided for in collective labor agreements would prevail over minimum salaries provided for in cantonal standard employment contracts.
Employer implications/action needed This development may require employers to adjust their minimum salaries in the future.
Employer risk N/A
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