Fixed-Term Employment Contract: Swiss Template Guide
A fixed-term employment contract in Switzerland must state the end date clearly and comply with the Obligationenrecht (OR). Swiss law permits fixed terms without cause for termination at expiry, but the notice period and early-termination rules still apply unless explicitly waived. Disputes arise when the end date is vague, probation overlaps unclear, or renewal happens tacitly without written agreement.
A fixed-term contract in Switzerland sets a defined employment end date instead of open-ended duration. This is lawful under Article 14 OR, provided the term and conditions are clear in writing. Many Swiss employers use fixed terms for project work, seasonal roles, or trial periods before permanent hire.
The purpose is certainty: both you and the employee know when the relationship ends. However, Swiss law still requires fairness. Simply writing 'contract ends on 31 December' is not enough if probation, notice periods, or renewal rules are ambiguous. Disputes often stem from this vagueness.
What Swiss Law Allows and Requires
The Obligationenrecht permits fixed-term contracts without restricting the reason (Article 14 OR). You do not need 'cause' to let a fixed-term contract expire. However, you must state the end date in writing before work begins or very early in the employment. Verbal agreements about end dates are not binding.
Swiss law also protects the employee during the fixed term: you cannot dismiss them before the end date except for 'just cause' (gross misconduct, repeated breaches). If you dismiss early without just cause, the employee can sue for breach. At expiry, the contract simply ends unless both parties agree in writing to renew.
- Fixed term must be stated in writing and agreed by both parties before employment starts.
- No dismissal before expiry unless just cause (theft, violence, repeated serious breaches).
- At expiry, employment ends automatically; no notice period is owed unless contract states otherwise.
- Renewal by silence or informal conduct may create a legal entanglement; always renew in writing.
- Probation clauses (Probezeit) can run within the fixed term but must be clearly separated.
- If probation allows early exit, state this explicitly—do not rely on general assumptions.
Reasonable Template Defaults
A sound fixed-term contract includes: (1) clear start and end dates; (2) job title and Pensum (e.g., 100%, 80%); (3) salary in CHF and payment frequency; (4) any probation period within the fixed term; (5) notice period for either party if early termination is allowed.
For a one-year project role in Zurich at 100% Pensum, a reasonable template might state: 'Employment begins 1 March 2025, ends 28 February 2026. Probation: first 3 months, either party may terminate with 7 days' notice. After probation, early termination requires 4 weeks' notice. Salary: CHF 6500/month, paid on the 25th.'
- Start date and end date must both be explicit (not 'approximately' or 'until project completion').
- State Pensum as a percentage (80%, 100%) and whether hours are fixed or flexible.
- Specify salary in CHF, payment day, and whether 13. Monatslohn or bonuses apply.
- If probation exists, note its duration and which party can exit early (often both in CH).
- Clarify what happens after expiry: contract ends, or is there an option to renew?
- State any conditions for early termination (notice period, or 'termination not permitted before end date').
Common Disputes and How to Avoid Them
The biggest mistake: end dates that are too vague. 'Around end of year' or 'subject to project completion' creates legal uncertainty. If you need flexibility, write 'contract ends no later than 31 December 2025' or build in a clear renewal clause, not a silent rollover.
A second trap: mixing probation and fixed-term without clarity. If an employee is hired on a 2-year fixed term with 3-month probation, state this in one place: 'Fixed term: 2 years. Probation (first 3 months): either party may terminate with 7 days' notice. After probation: contract continues until end date; early termination by employer requires just cause.' Silence creates disputes.
- Avoid vague end dates (e.g., 'end of season', 'when budget runs out'). Use a calendar date.
- Do not assume tacit renewal—always renew in writing, signed by both parties.
- If early termination is forbidden, say so explicitly: 'No termination before 31 Dec 2025 except just cause.'
- State whether Arbeitszeugnis or reference is owed at expiry; silence can lead to disputes.
- Clarify consequences of not renewing: do you owe severance? (Generally no, unless canton rules apply.)
- If probation allows early exit, spell out the notice period (often 7 days in probation, 4 weeks after).
Frequently asked questions
- Can I dismiss a fixed-term employee before the contract ends?
- Only for just cause (serious misconduct, theft, repeated breaches of duties). Normal performance issues are not enough. If you dismiss without just cause, the employee can claim damages for the remaining contract value. At expiry, the contract simply ends.
- What happens if the employee stays after the end date without a written renewal?
- This is risky. Swiss courts may interpret continued work as a tacit renewal, converting it to an open-ended or new fixed-term contract. To avoid confusion, always require a written renewal agreement signed before or very early in the extension period.
- Do I owe an Arbeitszeugnis when a fixed-term contract expires?
- An Arbeitszeugnis is owed when employment ends, including at the expiry of a fixed term. It should be neutral or positive unless there were serious issues. The employee is entitled to request it; refusing or delaying can lead to a complaint to the canton's labour office (RAV/ORP/URC).
General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.