Permanent Contract (Unbefristeter Arbeitsvertrag)
An unbefristeter Arbeitsvertrag is an employment contract with no fixed end date. It runs indefinitely until terminated by notice from either employer or employee. This is the standard contract type in Switzerland and carries specific notice periods and termination protections under the Code of Obligations (OR).
A permanent contract differs fundamentally from a fixed-term contract (befristeter Arbeitsvertrag). With no end date written in, the relationship continues until one party formally terminates it with proper notice.
Most Swiss employees work under permanent contracts. They offer stability to both sides—the employer gets continuity, and the employee has job security within the notice period framework.
When This Matters for Your Hiring
You'll use a permanent contract when hiring someone for an open-ended role—your standard sales hire, your office manager, your engineer. It's the default unless you have a specific, time-bound reason for a fixed-term arrangement (project end, maternity cover, trial period).
The moment you sign an unbefristeter Arbeitsvertrag, notice periods kick in immediately. Both sides must respect the terms you've written—typically two weeks, one month, or three months, depending on canton and what your employment contract states.
- Permanent contracts are the norm; fixed-term contracts need explicit justification
- Notice periods apply from day one of employment
- Canton-level employment law sets minimum notice protections
- Your contract can specify notice terms, but not below statutory minimums
- Probation periods (Probezeit) can shorten some notice rules—typically one month
- Changes to terms require written agreement from both parties
Your Obligations as Employer
You must provide a written contract before or on the first day of work (Code of Obligations, Art. 320). The contract should include job title, Pensum percentage (if part-time), start date, salary in CHF, notice period, and any probation clause.
You cannot unilaterally change a permanent contract's terms—salary, hours, Pensum, or location. Any change requires written consent from the employee. During probation, some flexibility exists, but termination rules remain strict even in the trial period.
- Provide a written contract immediately upon hiring
- Specify salary, Pensum, and notice period in writing
- Honor statutory notice periods; your terms cannot undercut canton law
- Document any probation period clearly (maximum three months in most cantons)
- Keep signed contracts on file for the duration of employment plus seven years
- Communicate changes only in writing, with employee signature
The Most Common Mistake
Many SME owners assume a verbal agreement or casual email counts as a contract. It doesn't. The Code of Obligations requires a written document. Disputes over salary, hours, or termination terms become messy and expensive without clear written terms upfront.
The second frequent error is not respecting notice periods during probation. Even with a one-month Probezeit, the notice period doesn't disappear—it may shorten to one week, but you must follow the letter. Firing without notice, even in probation, creates legal exposure.
- Never rely on verbal agreements or email chains alone—use a signed contract template
- Don't skip the written contract to save time; it costs far more in disputes
- Probation shortens notice, not dismissal rules—you still must give notice
- Don't assume canton defaults; your contract terms must be explicit and compliant
- Don't forget to update contracts when terms change; amendments need signatures
- Consult a local employment lawyer for canton-specific rules before signing
Frequently asked questions
- Can I switch a permanent contract to fixed-term later?
- No, not unilaterally. A permanent contract can only become fixed-term if the employee agrees in writing. If you need to limit the role to a project end, you must renegotiate the contract explicitly—a one-sided change breaches the OR.
- What's the minimum notice period I can set?
- Your canton and the Code of Obligations set the floor. Most cantons require at least one month notice from the employer, ending on the 15th or end of a month. Your contract can set longer—e.g., three months—but not shorter. A lawyer can confirm your canton's exact rule.
- Does a permanent contract mean I can't ever fire someone?
- No. You can terminate a permanent contract if you give proper notice and follow due process. However, termination without cause must respect notice periods. Termination for gross misconduct can be immediate, but 'just cause' (wichtiger Grund) is a high bar defined by law—consult a lawyer first.
General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.