What laws do I have to comply with when employing people?
Did you know that no written document is required for a valid employment contract? However, there are certain provisions that must be in writing in order to be legally agreed. A clear, written agreement is recommended in any case. Many disputes, some of which have to be fought out at industrial tribunals, arise from misunderstandings and unspoken expectations. Clear conditions from the outset help to prevent disputes from arising in the first place. After all, a legal dispute costs a lot of money, even more nerves and leaves both parties with a sour aftertaste. This is not only unpleasant but can also damage your reputation.
Agreements may in some cases contradict the law and therefore be invalid, even if an employee has signed or even explicitly requested them. Trust is good, but there should always be clarity about what can actually be enforced in the event of a dispute. Legal certainty is not a luxury, but a key foundation for existence.
Labour law and employment contract
Employment relationships are governed by various statutory regulations. Some of these are mandatory and cannot be contractually amended to the disadvantage of employees. Others are discretionary; they only apply if nothing else has been contractually agreed. An employment contract is also concluded by conduct implying intent, even if nothing has been agreed in writing. This is the case, for example, if a person carries out work and receives money for it without an agreement having been made.
Provisions on the employment relationship can be found in the Swiss Code of Obligations (CO) and the Labour Act (ArG/LTr), including the related ordinances, as well as in collective employment contracts, some of which have been declared generally binding by the federal or cantonal authorities. However, social security legislation also imposes obligations on employers, as does tax law. Depending on the circumstances, there may be additional laws to consider, such as the Federal Law on Employment and Labor Leasing (AVG/LSE), the Posted Workers Act (PWA), the Foreign Nationals and Integration Act (FNIA) and the Federal Act on Illegal Employment (BGSA/LTN), to name but a few. In the case of cross-border employment, agreements between countries or groups of countries also come into play.
Beyond advising you on which legal provisions are relevant for a particular employment relationship, we also assist you in realising contracts in close collaboration with our legal specialists.
Regulations
Rules help to create clarity and, consequently, a common basis for good working relationships. Regulations establish consistency and create trust that employees will be treated equally, including by one another. This is not about over-regulation, but about making the majority of everyday decisions easy. Possible regulations include:
- Employee regulations (basic provisions of the employment contract)
- Expense regulations (rules on the amount and settlement of expense allowances; there are often separate regulations for management, e.g. with regard to lump-sum expenses)
- Remuneration regulations (standardised regulations regarding entitlement, amount and type of remuneration)
- Working hours regulations (rules on target working hours, working hours model, time sheets, etc.)
Contracts and regulations should be aligned so that they complement rather than contradict each other, in any combination.
We advise you on the creation, implementation and application of legal and contractual foundations. Let us help you ensure legal conformity, optimise interrelated issues and achieve easy practical implementation.