Switzerland by linzhengnd

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									Bunge                                                                  e408a9f9-d553-47bd-95e8-15fea080dfa2.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 is 7 days. A lower minimum notice can be        In practice the notice period during the probation period is
    Notice Period during            stipulated for the probationary period if both sides   often 1 month , the same as it is in the first year of
    probationary period.            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                                                               e408a9f9-d553-47bd-95e8-15fea080dfa2.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
    Maternity Leave                is paid by 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



2                                                             e408a9f9-d553-47bd-95e8-15fea080dfa2.xls    9/11/2011
Bunge                                                               e408a9f9-d553-47bd-95e8-15fea080dfa2.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
    Payment of salary after      year of service 3 months pay from the 5th to the 9th It is widely practised to permit employees at least 6 month
    accident or sickness         year 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
    Principle of the pension     which is mandatory but contracted out to insurance
    arrangements                 companies.
                                 Employer 5.07% and Employee 5.05% of all
                                 salaries, bonuses, housing allowances,car
    AVS                          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       A middle market employer would pay the deuxieme pilier
                                 the mandatory pension once they leave the country        on all base earnings, minus the AVS allowance forgetting
                                 for good. The funds stay in an account, accrue           about the maximum "cap". The top of the market would
    Employer and Employee        interest and are being paid out once the employee        be to pay without cap and without any deduction of the
    Pension Contributions        reaches the pension age.                                 AVS 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              e408a9f9-d553-47bd-95e8-15fea080dfa2.xls

                               Market Conditions Summary
        LAW                            MARKET                        MARKET Example 1

                                       general information




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Bunge                                                                 e408a9f9-d553-47bd-95e8-15fea080dfa2.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            non-professional accident insurance (approx. 1 %)
    insurance OBLIGATORY             is 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            1.005% on salary over CHF 106,800 minus AVS
    insurance 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
    Tax at source (Împot à la        matrimonial status, number of children and level of    approved by the employee. Employees often find it easier
    source = PAYE in UK)             income.                                                to manage their money if it is received net of tax.




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Bunge                                                           e408a9f9-d553-47bd-95e8-15fea080dfa2.xls

                                                                            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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         Bunge                  e408a9f9-d553-47bd-95e8-15fea080dfa2.xls

arket Conditions Summary
                                        MARKET Example 2




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         Bunge                  e408a9f9-d553-47bd-95e8-15fea080dfa2.xls

arket Conditions Summary
                                        MARKET Example 2




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          Bunge                 e408a9f9-d553-47bd-95e8-15fea080dfa2.xls

arket Conditions Summary
                                        MARKET Example 2



e Costs




          9                e408a9f9-d553-47bd-95e8-15fea080dfa2.xls   9/11/2011
         Bunge                  e408a9f9-d553-47bd-95e8-15fea080dfa2.xls

arket Conditions Summary
                                        MARKET Example 2




         10                e408a9f9-d553-47bd-95e8-15fea080dfa2.xls   9/11/2011
         Bunge                  e408a9f9-d553-47bd-95e8-15fea080dfa2.xls

arket Conditions Summary
                                        MARKET Example 2




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         Bunge                  e408a9f9-d553-47bd-95e8-15fea080dfa2.xls

arket Conditions Summary
                                        MARKET Example 2




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