Get documents about "Switzerland
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- 9/8/2011
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Document Sample
Bunge 11a1f09e-4a6c-48c8-b855-0e8ec339e2d3.xls
Market Conditions Summary
LAW MARKET MARKET Example 1
general information
Recruitment and Contract
Probationary Period 3 months maximum 3 months
Probationary Period Extension
if unsatisfactory
If no probationary period is stated it is assumed to be
of one month's duration and the employment notice In practice the notice period during the probation period is
Notice Period during is 7 days. A lower minimum notice can be stipulated often 1 month , the same as it is in the first year of
probationary period. for the probationary period if both sides agree. employment.
Swiss companies tend to stick
to the legal minima.
Multinationals often have
longer notice periods or have
2 months notice immediately
on end of Probationary
Minimum 1 month notice for the first year of Note that notice is normally given for calendar months Period, and for management
Notice Period for normal employment then 2 months notice up to 9 years although the two parties can agree not to be bound by staff longer notice peiods of
contract service, then 3 months notice this. up to a year are found.
Probationary period for fixed term contract is
supposed to be proportional to the contract.. A fixed
term contract which is tacitly renewed becomes a
permanent contract. A fixed term contract can be
renewed but must not be renewed simply to avoid a
Fixed Term Contract permanent contract
Indefinite Contract
Retirement Age M/F 65 for men and 63 for women, rising to 64 in 2005 normally as law
Employment Conditions
Maximum normally 45 to be compared with that of
Working Hours EU where there is a limit of 38 hours. 40 hours is normal
Overtime
25 days frequently given to those aged over 50 or with
long seniority - 10 years or more, but this is not obligatory 25 days vacation frequent in
Vacation 20 days minimum unless enshrined in a Convention Collective. Multinational companies.
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Bunge 11a1f09e-4a6c-48c8-b855-0e8ec339e2d3.xls
Market Conditions Summary
LAW MARKET MARKET Example 1
general information
Employee may delay or not take vacation and does not
normally lose it. But the employer can fix a date for
vacation giving three months notice and the employee
must take this vacation Note that if the employer pays out
for vacation not taken the employee can still claim the
Under 20 years old employees have right to 25 days vacation if it is part of the legal minimum. This does not
seniority vacation. apply if it is for vacation over the legal minimum.
Special Leave
Birth of Child Nothing in law 2 days frequent
Death of Spouse or child Nothing in law 3 days
Death of Father or Mother Nothing in law 3 days
Marriage Nothing in law 3 days
Marriage of a child Nothing in law infrequently given
others Nothing in law moving house 1 day moving over 100km= 2 days
Varies by Canton. Geneva has 1 August (Federal) ,
1 January, Good Friday,Easter
Monday,Ascension,Pentecost,Young Genevans, 25
Public Holidays December and 31 December. (9) As law
Paid maternity leave is a new thing in Switzerland.
As per 1. July 2006 all female employees are to have
a paid maternity leave of max. 98 days after giving
birth to a baby. They receive 80% of their average
income before the day of giving birth. This is paid by
Maternity Leave the Canton. as per law and still widely resented by many employers!
not widely given but increasingly found as EU legislation
Paternity and Parental Leave nothing in law spreads to Switzerland.
Remuneration
Bonus No legal right
Minimum Wage
Vacation bonus none none
Months of salary payment No legal right to extra months of salary payment. 13th month salary widely practised and paid at Christmas.
Housing allowance for expatriates who are in possession
of a permis B can be partly or wholly tax free as long as
the contract is temporary for up to 3 years. This is very
strictly monitored by the Social Security authorities and the
tax authorities should be approached first to get this
Housing Allowance approved.
Training reimbursement
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Bunge 11a1f09e-4a6c-48c8-b855-0e8ec339e2d3.xls
Market Conditions Summary
LAW MARKET MARKET Example 1
general information
Social Coverage Describe with Employer and Employee Costs
same rights as for other illnesses. 3 weeks pay up to
1 year of service, 4 weeks pay from the second year
of service, 2 months pay during the 3rd and 4th year
Payment of salary after of service 3 months pay from the 5th to the 9th year It is widely practised to permit employees at least 6 month
accident or sickness of service. of sickness at full pay before restrictions start.
Life insurance not obligatory widely practiced to 2 years salary in case of accident
Early retirement
Pension
Principle is that there is a state pension called AVS-
Assurance Vieillesse- which is mandatory on all
remuneration and is split employer-employee. To this
is added the "Second Pillar" -deuxieme pilier which is
Principle of the pension mandatory but contracted out to insurance
arrangements companies.
Employer 5.07% and Employee 5.05% of all salaries,
AVS bonuses, housing allowances,car allowances etc.
Widows and orphan pensions Contained mainly in the "deuxieme pilier"
The employer portion must be at least equal to the Deuxieme pilier contributions vary enormously but the
Deuxieme Pilier employee portion. differential by age is widely practiced.
The minimum total for pension must be at least
7% for age 25-34
10% for age 35-44, 15%
for age 45-54 18% for a
person of 55+
based on the AVS-earning minus the AVS (Social
Security) allowance of CHF 23'205.00. This
produces a cap for the legal minimum which is CHF
56'355.00 of earnings towards the mandatory
pension fund. Of course the employer is free to have
insurance coverage that exceeds the legal minimum.
Also, as per 01.06.2007 foreign employees are not
allowed to take the savings from the mandatory A middle market employer would pay the deuxieme pilier
pension once they leave the country for good. The on all base earnings, minus the AVS allowance forgetting
funds stay in an account, accrue interest and are about the maximum "cap". The top of the market would be
Employer and Employee being paid out once the employee reaches the to pay without cap and without any deduction of the AVS
Pension Contributions pension age. allowance.
not frequently subsidized by employers, except for
Childcare nothing mandatory expatriates. Long waiting lists for facilities
Long Term Care Insurance none mandatory not found
Child Allowance Employer only. 1.40% of all salary
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Bunge 11a1f09e-4a6c-48c8-b855-0e8ec339e2d3.xls
Market Conditions Summary
LAW MARKET MARKET Example 1
general information
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Bunge 11a1f09e-4a6c-48c8-b855-0e8ec339e2d3.xls
Market Conditions Summary
LAW MARKET MARKET Example 1
general information
Social Insurances
Pension and disability
2.00% of salary up to CHF 106,800 , split 50-50
Unemployment insurance AC employer - employee
Professional and non- 1.215% on salary up to CHF 106,800 whereas the
professional accident insurance non-professional accident insurance (approx. 1 %) is
OBLIGATORY paid by the employee via monthly salary
Professional and non-
professional accident insurance
COMPLEMENTARY 0.27% on salary up to chf106,800
Professional and non-
professional accident insurance 1.005% on salary over CHF 106,800 minus AVS
COMPLEMENTARY allowance
Loss of earnings insurance for
sickness "PERTE DE GAIN" 1.264% on all salary split 50-50 employer - employee
Swiss companies tend to
follow the law in this area
believing that health
insurance is an employee
resonsibility, and part of the
reason for generous Swiss
base salaries. Multinationals
are generally more generous-
Practices vary: some companies pay a portion of often influenced by Frenchor
Obligatory for the employee to insure himself or employees insurance premium, some pay for insurance USA norms where employers
herselt for basic health insurance unless this is done completely for the employee, some pay for the insurance are accustomed to pay for
Health Insurance by his or her company. but deduct 1-1.5% of salary from the employee. health care.
0.20% of all salary contribution by Employer and
Maternity Allowance (AMAT) Employee equally.
Total
Retirement Medical Benefits none obligatory none
Day Care none obligatory occasionally subsidized by the employer.
Paid only by foreign employees without a permanent Even for Swiss employees and those holding a permis C
residency permit ( Permit C ). The tax is based on employers may deduct tax from the payroll if it is approved
Tax at source (Împot à la source matrimonial status, number of children and level of by the employee. Employees often find it easier to manage
= PAYE in UK) income. their money if it is received net of tax.
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Market Conditions Summary
LAW MARKET MARKET Example 1
general information
There is no legal right to severance pay
other than the notice period. In fact
courts do grant indemnities in cases of General practice of giving 2 weeks pay per
Termination Indemnities unfair dismissal. year of service
Legal Services in Switzerland
Recommended legal companies are available from Compandben SA
Payroll Services in Switzerland
Payroll Provider Price per paysheet etc Services Performed
fully outsourced payroll services: in addition the company
Payroll Schweiz AG price quoted individually for each business stream is licenced for the provision of temporary staff.
Benefits Providers Provider Cost
Compandben will recommend insurance and
Health Insurance pension specialists
Compandben will recommend insurance and
Pension pension specialists
Compandben will recommend insurance and
Life Insurance pension specialists
Compandben will recommend insurance and
other pension specialists
"fixers" who will approach the tax authorities
discreetly on a "no names" basis to find if a proposal Swiss Tax authorities are flexible and willing to consider
Tax Services will work are available and efficient. special deals to encourage employment.
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arket Conditions Summary
MARKET Example 2
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arket Conditions Summary
MARKET Example 2
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Bunge 11a1f09e-4a6c-48c8-b855-0e8ec339e2d3.xls
arket Conditions Summary
MARKET Example 2
e Costs
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arket Conditions Summary
MARKET Example 2
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arket Conditions Summary
MARKET Example 2
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arket Conditions Summary
MARKET Example 2
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