Archive | Employment Contracts

Tags: luxury industries, luxury watch, swiss economy, Unemployment, unemployment switzerland

Swiss Labor Market Remains Tense

Posted on 07 December 2009 by PCT

swiss_labourThe Swiss employment market continued to deteriorate in the 3rd quarter with some sectors of the economy struck harder than others. The most jobs were lost in the luxury industries and watch making sector with the unemployment rate skyrocketing nearly 300% in a period of 12 months. Also the number of unemployed increased by roughly 150% over the same 12 month period. Workers in energy and real estate saw the number of their unemployed double over the past year.

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Temporary Jobs in Switzerland – Lawyer’s Advice

Posted on 18 November 2007 by LegalBeagle

“I registered with a placement agency and signed a contract. What happens if I find a regular job as a result of this and the company they rent me to wants to hire me? Do I stay legally liable to the agency that rented me to the company in the first place?” Lionel, Geneva.

Temporary or Interim work has a special legal status in Switzerland.

In fact, the worker is bound by an employment contract to the agency which rents temporary workers to its enterprise clientele. And on the other hand, the worker is in no way bound to the actual company at which he is working who is renting the temporary staff from the agency, even though that is where he goes to work !

The Swiss federal laws governing temporary jobs in Switzerland – the rental of temp workers and what is referred to as ‘location de service’ – LES- or rental of services, governs this type of employment relationship. The LES delineates a certain number of measures that must be respected in this type of employment relationship.

First, the contract between the agency renting temporary workers and the worker must be in written form and contain, among other things, the type of work to be furnished, the length of engagement, and the working hours.

Accorsing to article 20 LES, if the company which is renting the services from the agency has a collective labor contract with its own permanent staff, the agency which is renting the services (workers) must apply the same working conditions (notably salary, working hours, and insurances) in force in the client company’s collective labor agreement.

Finally, the agency cannot by law prevent you taking a permanent job, concluding an employment contract directly with the client company if they decide to offer you regular employment.

Article 19 al. 5 letter b LES clearly stipulates that any clause which can prevent the employee / worker or create obstacles for the employee / worker from being employed by the client company – the ‘renter’ of the agency’s services – once the agency’s contract duration has ended, is null and void. The same holds true for any clauses concluded ; the company renting the temporary workers must be legally able to directly hire the worker at the end of the services contract.

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Overview of Swiss Labor Laws

Posted on 12 February 2007 by LegalBeagle

The Employment contract between the employer and employee sets down the working relationship in writing.
The law does not foresee any special form for this contract, but there are a few important points of an employment contract:

>> the trial period may not exceed 3 months
>> the employment contract contain any ‘immoral’ or illegal tasks
>> the period of notice must be clearly stated

The General Labour Agreement (GLA) is a contract between employer(s) or their representatives and employees’ federations or trade unions and governs employment relationships. A GLA is relevant when employees and employers belong to affiliated federation or trade union or if its applicability has been agreed in some other way.

If the GLA has been declared generally binding by the competent authority, it is applied for the relevant branch irrespective of federation or trade union membership and only provisions that are more favourable for the employee may be included in the individual employment contract.

A limited employment contract, of a duration defined by both contracting parties expires at the end of the period agreed. Generally, this type of contract cannot be terminated in advance.

An unlimited employment contract (the duration of which is not fixed) may be terminated by one of the two parties taking accout of the period of notice stipulated in the contract and the date for giving such notice. The notice period is 7 days during the 3-month trial period, then one month. After 1 year, the notice period becomes 2 months. After 5 years, it becomes 3 months. If requested, the party giving notice must give written reasons for his decision.

Minimum Wage
A statutory minimum wage does not exist in Switzerland, though some GLA’s stipulate minimum wages for certain sectors (such as the hotel industry). According to law, employeees are entitled to specially indexed remuneration for night or weekend work, as well as work on public holidays.

In Switzerland there is still a certain holdover of the principle of ‘seniority.’ Nonetheless, things are gradually moving to a system of results-oriented remuneration both in the private sector and (of course more slowly) in the public sector. There remain appreciable discrepancies between women’s and men’s wages for the same level of professional qualifications.

Working Hours
Legally, the maximum working time is 45 hours a week for industrial and white collar employees — office staff,
technical personnel and other employees, including sales assistants in large retail businesses. For other salaried persons, the maximum is supposed to be 50 hours.

Vacation Allotments
By law the minimum entitlement is fixed at four weeks for employees and apprentices over 20 years of age.

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