What happens to the bonus if the employee is terminated before bonus payout?

This depends entirely on your contract. If the contract is silent, Swiss courts will examine whether the bonus was 'earned' by the termination date. A clear clause should state whether the bonus is forfeited entirely, paid pro-rata to date of termination, or paid in full if the employee was terminated without cause. Discretionary bonuses are more likely to be forfeited; bonuses tied to achieved metrics are often prorated. Consult a lawyer if your situation is complex.

Can I change salary or Pensum mid-contract?

Only with the employee's written consent. A unilateral change to salary or Pensum is a material change to the contract and may justify resignation without notice or, in some cases, grounds for the employee to claim breach. Any salary adjustment must be documented in a signed amendment or addendum. Changes due to business restructuring or promotion require an explicit new agreement, not just a notice.

Employment Contract: Salary, 13th Month and Bonus Clause

The salary clause sets fixed compensation, while 13th month and bonus provisions govern variable pay. Swiss law (OR) requires clear written terms; disputes arise when bonus conditions are vague or 13th month eligibility at termination is undefined. A reasonable default ties variable pay to documented performance metrics and specifies proration rules at contract end.

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Your employment contract must specify gross salary in CHF and any additional compensation—13th month, performance bonus, or commission. Swiss law (Obligationenrecht) does not mandate these elements, but once promised, they become legally binding and must be paid according to the written terms.

Salary clauses cause disputes most often when bonus triggers are subjective, when 13th month payment rules differ between departure scenarios, or when Pensum changes mid-year without clarity on impact. Clarity now prevents costly disagreements later.

What the Salary Clause Covers

The salary clause specifies the employee's gross monthly or annual compensation in CHF, the payment frequency (monthly, semi-monthly), and the Pensum (percentage of full-time engagement). For a 90% employee earning CHF 6,000 gross, state both the annual figure and the monthly breakdown.

This is your binding offer of compensation. Any omission—Pensum percentage, currency, or payment method—may be interpreted against you. Include the date the salary takes effect, especially if it changes during probation or after a review period.

State gross salary in CHF, Pensum as a percentage (80%, 100%), and payment frequency (monthly, semi-monthly).
Specify the start date of the salary level to avoid disputes over retroactive claims.
If salary varies by location (Geneva vs. rural canton), document which applies and why, referencing cantonal norms if relevant.
Include currency (CHF) explicitly; never leave it ambiguous.
For trainees or apprentices, reference applicable GAV (collective agreement) rates if they apply.
Confirm whether salary is 12 or 13 payments—this changes the gross annual total significantly.

13th Month: Legal Status and Timing

A 13th month payment is not legally required under Swiss law but is common in many industries and regions. Once promised in the contract, it becomes a wage component and must be paid. The key dispute: eligibility if the employee leaves before year-end.

Swiss employers typically pay 13th month in November or December as a fixed annual benefit. The critical clause specifies proration rules: does an employee who leaves in June receive 6/12ths of the 13th month, or nothing? Does a 12-month notice period affect entitlement? Define this clearly.

If 13th month is offered, state it as a fixed amount in CHF or as a percentage of monthly salary (e.g., one full monthly gross).
Specify payment timing: typically November or December.
Define proration: does the employee receive a pro-rata share if they leave mid-year, or is it forfeited?
Clarify: does resignation with 30 days' notice forfeit 13th month, or only termination for cause?
At year-end termination (31 December), confirm whether 13th month is paid in full or prorated to date of departure.
Reference any GAV or collective agreement that may override your default (e.g., banking or retail sectors often have standard 13th month rules).

Performance Bonus and Commission: Clarity and Conditions

If you offer a bonus or commission, the contract must state the target amount, calculation method, and performance conditions. Vague language—'based on company performance' or 'at management discretion'—invites disputes. Swiss courts have held that bonus conditions must be objective or, if discretionary, exercised reasonably.

Common mistakes: promising a 'discretionary bonus' without metrics, failing to specify whether bonus is paid on departure, or tying it to undefined targets (e.g., 'growth'). A reasonable default includes a clear formula, documented measurement criteria, and explicit rules for partial-year or terminated employment.

Define the bonus as a fixed percentage of base salary, a fixed CHF amount, or a formula tied to measurable metrics (e.g., sales target, EBITDA growth).
State whether bonus is guaranteed (part of compensation) or discretionary (paid only if conditions are met).
Specify measurement period (calendar year, fiscal year, rolling 12 months) and review frequency.
Clarify: is bonus forfeited if the employee resigns voluntarily? Is it prorated if terminated by the employer mid-year?
If bonus depends on team or company performance, define the threshold and how individual contribution is weighted.
Document how bonus interacts with 13th month—are they separate, or does the bonus reduce 13th month entitlement?

Frequently asked questions

Is the 13th month salary mandatory in Switzerland?: No. Swiss law (OR) does not require a 13th month payment. However, it is widespread in certain sectors and regions (e.g., Zurich, Geneva, finance, insurance). Once you offer it in the contract, it becomes a wage component and must be paid according to the terms you specify. If you don't offer it, you have no obligation. If you do, clarity on proration and departure scenarios is essential to avoid disputes.
What happens to the bonus if the employee is terminated before bonus payout?: This depends entirely on your contract. If the contract is silent, Swiss courts will examine whether the bonus was 'earned' by the termination date. A clear clause should state whether the bonus is forfeited entirely, paid pro-rata to date of termination, or paid in full if the employee was terminated without cause. Discretionary bonuses are more likely to be forfeited; bonuses tied to achieved metrics are often prorated. Consult a lawyer if your situation is complex.
Can I change salary or Pensum mid-contract?: Only with the employee's written consent. A unilateral change to salary or Pensum is a material change to the contract and may justify resignation without notice or, in some cases, grounds for the employee to claim breach. Any salary adjustment must be documented in a signed amendment or addendum. Changes due to business restructuring or promotion require an explicit new agreement, not just a notice.

General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.