Holiday Entitlement Reduction (Ferienkürzung)
Ferienkürzung means reducing an employee's annual holiday entitlement below the statutory or contractual minimum. In Switzerland, this is heavily restricted by the ArG and cantonal law. You can only reduce holidays for part-time staff (proportional to their Pensum) or in rare cases with written agreement. The most common mistake is cutting holidays as a cost-saving measure without legal grounds—this exposes you to wage claims and damages.
Ferienkürzung is the reduction of an employee's annual holiday entitlement. Swiss law sets strict limits: the ArG guarantees a minimum of 4 weeks (20 days) per year for all employees, regardless of seniority.
This term comes up when restructuring contracts, moving staff between Pensum levels, or managing payouts during termination. Understanding the rules prevents costly disputes.
When You Can Reduce Holiday Entitlement
The only legitimate reason to reduce holidays is a change in Pensum (working hours). If an employee moves from 100% to 60%, their holiday entitlement scales proportionally—from 20 days to 12 days per year.
Written consent from the employee can theoretically allow reductions below statutory minimums, but this is legally fragile and rarely enforceable. Any reduction must be documented in the employment contract or a signed amendment.
- Part-time Pensum reduction (only lawful basis for routine Ferienkürzung)
- Agreed contract amendment in writing (high legal risk; lawyer review essential)
- Cantonal or GAV rules may impose stricter minimums than the ArG
- Holiday accrual cannot be backdated or forfeited retroactively
- Reducing holidays to recover losses or cut costs is illegal
- Termination payout must include accrued but unused holidays at full value
Your Legal Obligations
The ArG (Arbeitsgesetz) sets the floor: no employee can work below 4 weeks' holiday annually. Cantonal labour law may raise this floor. Some cantons (e.g. Zurich, Geneva) add extra protections; check your cantonal Office of Labour (Arbeitsinspektorat).
Any Ferienkürzung must be documented clearly in a contract or signed amendment before it takes effect. During termination, unpaid holiday must be paid out at the employee's gross daily wage rate, calculated fairly across the notice period.
- ArG Article 20 sets the 4-week minimum (non-waivable)
- Cantonal Arbeitsinspektorat enforces local minimums
- Reduction requires written contract or amendment signed by both parties
- Payout on exit must cover all accrued, unused holidays
- Wage claims for illegal reduction can extend up to 2 years back
- Disputes often result in mediation or Labour Court arbitration
The Most Common Mistake
Employers cut holiday days as a hidden cost-saving measure, hoping employees won't notice or challenge it. This is illegal and expensive: the employee can claim full back-pay for the missing days, plus interest and damages.
A second frequent error: assuming a verbal agreement to reduce holidays is valid. It must be in writing, signed by both parties, and clearly reference the specific number of days. Email confirmation alone is often not sufficient.
- Cutting holidays without a contractual change or legal basis
- Relying on verbal consent instead of signed amendment
- Forgetting to scale holidays when Pensum changes
- Not paying out full holiday value on termination
- Confusing Swiss holiday law with EU/German standards
- Assuming a very low Pensum (e.g. 10%) means near-zero holidays
Frequently asked questions
- Can I reduce holidays if I move an employee from 100% to 80% Pensum?
- Yes—and you must. Holidays scale with Pensum. At 80%, the entitlement drops from 20 to 16 days (4 weeks × 80%). Update the contract in writing and confirm the new figure before the change takes effect.
- What happens if I don't pay out unused holiday when I fire someone?
- The employee can sue for the full value of unpaid days plus interest (5% per annum under OR Article 104). They may also claim wrongful termination damages. The wage claim typically has a 2-year limitation period.
- Does my canton's GAV or collective agreement override the ArG minimum?
- Only if it offers more protection, not less. A GAV can raise the minimum from 4 weeks to 5 or 6 weeks, but cannot fall below the ArG floor. Check your cantonal labour office and any GAV your firm is bound to.
General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.