Paid vacation leave in Switzerland

Switzerland, known for its stunning landscapes and high standard of living, also boasts a robust labor market with generous provisions for employees, including paid vacation leave. For companies hiring in Switzerland, understanding these entitlements is essential when putting together competitive offers.

Legal Framework

Swiss labor law mandates that all employees are entitled to paid vacation leave. The Federal Act on Employment Contracts (Obligationenrecht) and the Labor Law (Arbeitsgesetz) provide the legal framework for vacation entitlements.

Minimum Vacation Entitlement

The statutory minimum vacation entitlement in Switzerland is as follows:

1. Adults (aged 20 and above): Employees are entitled to at least four weeks (20 working days) of paid vacation per year.
2. Young Workers (up to 20 years old): Employees under 20 are entitled to at least five weeks (25 working days) of paid vacation per year.

These entitlements apply regardless of whether the employee works full-time or part-time, with vacation days calculated on a pro-rata basis for part-time workers.

Collective Bargaining Agreements and Employment Contracts

While the statutory minimum provides a baseline, many employees benefit from more generous vacation entitlements through collective bargaining agreements (CBAs) or individual employment contracts. These agreements can grant additional days beyond the legal minimum, reflecting the importance placed on work-life balance in Swiss labor culture.

Calculation of Vacation Leave

Vacation leave is calculated based on the number of working days, excluding public holidays. In Switzerland, a standard working week typically comprises five working days (Monday to Friday). Therefore, a four-week vacation corresponds to 20 working days.

Vacation Pay

During vacation leave, employees are entitled to their full regular salary, including any bonuses or allowances. Vacation pay is usually disbursed at the same time as regular wages, although some employers may opt to pay it out in a lump sum at the beginning of the vacation period. Foreign employers without a Swiss entity can run payroll in Switzerland through an Employer of Record, which handles vacation pay alongside regular salaries and social contributions.

Timing and Scheduling of Vacation

Employers and employees should mutually agree on the timing of vacations, considering both the employee’s preferences and the operational needs of the business. Swiss law stipulates that at least two consecutive weeks of vacation must be granted once per year, allowing employees to enjoy an extended period of rest.

Accrual and Carry-Over of Vacation Days

Vacation days typically accrue over the course of the employment year. If an employee is unable to take all their vacation days within the year, they may carry over the unused days to the following year. However, employers often set limits on the number of days that can be carried over, and employees are encouraged to use their vacation days to avoid forfeiture.

Special Circumstances

In certain situations, such as illness or maternity leave, employees may be entitled to defer their vacation days. Swiss labor law protects employees’ rights to take their full vacation entitlement, ensuring that unforeseen circumstances do not result in the loss of vacation days.

Vacation Leave for Part-Time and Temporary Workers

Part-time and temporary workers in Switzerland are also entitled to paid vacation leave, calculated on a pro-rata basis. This ensures equitable treatment for all employees, regardless of their employment status.