GAV – Collective Bargaining Agreement
A GAV (Gesamtarbeitsvertrag) is a collective bargaining agreement negotiated between employers or employer associations and labour unions, setting minimum standards for wages, working hours, holidays, and other employment conditions. If your industry or canton has a GAV, you must comply with its terms—even if your employee is not a union member.
In Switzerland, a GAV establishes floor-level terms for an entire sector or region. It covers minimum gross monthly or hourly wages (often indexed to a 100% Pensum), holiday entitlements, notice periods, and sometimes benefits like a 13. Monatslohn (thirteenth month's pay) or training allowances.
Whether a GAV applies to your company depends on your industry, your canton, and sometimes your employer association membership. Common GAVs exist in construction, hospitality, retail, metalworking, and healthcare.
When a GAV Applies to Your Hiring
You must comply with a GAV if: your industry has a mandatory or widely adopted GAV (e.g., construction); you are a member of an employer association that has signed a GAV; your canton or city requires it; or your employee's role falls under a sector with a registered GAV.
Check with your industry association, local chamber of commerce, or canton labour office (Arbeitsinspektorat) to confirm. Ignorance does not protect you from liability.
- Mandatory GAVs bind all employers in the sector, regardless of membership.
- Non-mandatory GAVs bind only members of signatory employer associations.
- Some cantons (e.g., Geneva, Vaud) enforce minimum wage GAVs across certain industries.
- A GAV cannot set terms lower than the Swiss Labour Act (ArG).
- Your employment contract cannot undercut a GAV—even by agreement with the employee.
- Many GAVs set annual wage adjustment schedules tied to inflation.
Your Obligations as an Employer
If a GAV applies, you must pay at least the minimum wage stipulated, respect working hours and overtime rules, grant holidays and rest days as defined, and maintain records proving compliance. Violations can trigger fines and back-pay claims.
The burden of proof is yours: keep payslips, timesheets, and contracts for at least 5 years. Many cantons' labour offices conduct spot audits, especially in regulated sectors.
- Pay minimum wage on time; many GAVs specify when annual adjustments take effect.
- Document Pensum percentages clearly—a part-time role at 60% must show proportional pay.
- Honour notice periods and termination rules set by the GAV, which often differ from the ArG.
- Provide any mandated training or apprenticeship support (especially in craft trades).
- If the GAV includes a 13. Monatslohn, pay it in full by the date specified (usually December).
- Report to your employer association if you are a member; some GAVs require declaration of wages to sectoral funds.
Most Common Mistake
Assuming a GAV does not apply because your company is small or because an employee agreed to lower pay. This is wrong: GAVs are legally binding, and any contract clause contradicting a GAV is void. The employee can claim back-wages and penalties.
Second mistake: confusing your canton's rules. A GAV valid in Zurich may not apply in Bern. Verify with your canton's labour authority before hiring.
- Never negotiate away GAV minimum wages, even if the candidate agrees.
- Do not assume a small company is exempt; most sectors do not have exceptions by firm size.
- If you join an employer association mid-year, a GAV may apply retroactively to your employees.
- Update your wage scales annually; many GAVs publish new minimums each January or in line with collective agreements.
- If unsure, consult your sector association or a Swiss labour lawyer—the cost is far less than back-pay and fines.
- Keep proof that you checked GAV compliance; ignorance is not a defence in a wage dispute.
Frequently asked questions
- Does a GAV apply if my employee is not a union member?
- Yes. A GAV is a sector or region-wide agreement. If it applies to your industry and canton, you must comply regardless of union membership. Swiss law treats GAVs as quasi-legal standards for the entire sector.
- What happens if I discover I have been paying below the GAV minimum?
- You must immediately adjust wages to the GAV floor and pay back-wages plus statutory interest (currently ~5% per year). The employee can also file a wage claim with the labour court. Consult a lawyer to minimize exposure.
- How do I find out if a GAV applies to my company?
- Contact your industry association, your canton's Arbeitsinspektorat (labour inspectorate), or the SECO website (Secretariat for Economic Affairs). If you are an employer association member, your membership agreement will list applicable GAVs.
General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.