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Switzerland - Compensation & Benefit Legislation

CAPITAL

Bern

 

CLIMATE

Temperate, varying with altitude and season.

 

LANGUAGES

German 64%, French 19%, Italian 8%, Romansch 1%, other 8%

 

CURRENCY

Swiss francs (1 USD = 1.69740 CHF as of March 1, 2002)

 

SWITZERLAND - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

SWITZERLAND - EMBASSY/CONSULATES

U.S. Embassy at Bern

Jubilaeumstrasse 93

3001 Bern, Switzerland

Telephone: [41] (31) 357-7011

Fax: [41] (31) 357-7344

http://www.us-embassy.ch/

 

Consulate Offices:

Geneva

America Center of Geneva

7 rue Versonnex

1207 Geneva, Switzerland

Telephone: 022/8405160

Fax: 022/8405162

 

Zurich

Dufourstrasse 101

Third Floor

Zurich, Switzerland

Telephone: 01/422 25 66

Fax: 01/383 98 14

 

Embassy of Switzerland at Washington D.C.

2900 Cathedral Avenue N.W.

Washington D.C. 20008

Telephone: (202) 745-7900

Fax: (202) 387-2564

http://www.eda.admin.ch/washington_emb/e/home.TopTitleImg.gif

 

SWITZERLAND - HOLIDAYS

 

SWITZERLAND - LEAVE

Maternity Leave: 8 weeks – paid by the employer.

 

SWITZERLAND - MINIMUM AGE

The minimum age for the full-time employment of children is 15 years, and children generally remain in school until this age. Children over 13 years of age may be employed in light duties for not more than 9 hours per week during the school year and 15 hours otherwise. The employment of youths between the ages of 15 and 20 is regulated strictly; they may not work at night, on Sundays, or in hazardous or dangerous conditions. 

 

(Section 6.d. Acceptable Conditions of Work, Switzerland – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

SWITZERLAND - MINIMUM REMUNERATION

There is no national minimum wage.

 

The lowest wages fixed in collective bargaining generally are adequate to provide a decent standard of living for a worker and family. However, the Swiss Association of Trade Unions in a 1999 study found that 60,000 full-time workers (or 3.4 percent) fall below the poverty line, which is defined as earnings of less than approximately 22,900 Swiss francs--or half of the median wage.
 

(Section 6.e. Acceptable Conditions of Work, Switzerland – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

SWITZERLAND - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

SWITZERLAND - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

 a. The Right of Association

 

All workers, including foreigners, have the freedom to associate freely, to join unions of their choice, and to select their own representatives, and workers exercise these rights in practice. Approximately one-quarter of the work force is unionized. Unions are independent of the Government and political parties.

 

The Constitution provides specific protection for the right to strike, but a unique labor peace under an informal agreement between unions and employers--in existence since the 1930's--has resulted in fewer than 10 strikes per year since 1975. The law prohibits retribution against strikers or their leaders.

 

The law prohibits strikes by public servants, as well as by workers in state-owned bodies such as the postal service. However, a new law concerning employees of the Federal Government generally recognizes their right to strike. Under the new law, the Government may curtail or suspend the right to strike for certain categories of government employees only for reasons of national security, safeguarding national foreign policy interests, or providing the population with essential goods and services. The new law was implemented in stages for different categories of employees throughout the year and is to continue to be implemented during 2002.

 

Unions associate freely with international organizations.

 

 b. The Right to Organize and Bargain Collectively

 

The Constitution provides for the right to organize and bargain collectively, and unions exercise this right. Periodic negotiations between employer and worker organizations determine wages and settle other labor issues at the local, or infrequently, at the industry sector level. Nonunion firms generally adopt the terms and conditions fixed in the unions' collective bargaining.

 

The law protects workers from acts of antiunion discrimination, and the Government generally respects this provision in practice.

 

Labor appeal courts exist at both the cantonal and district levels.

 

There are no export processing zones. 

 

c. Prohibition of Forced or Compulsory Labor

 

There is no specific constitutional or statutory ban on forced or compulsory labor; however, trafficking in women for forced prostitution increased during the year (see Sections 5 and 6.f.).

 

The Government does not prohibit specifically forced and bonded labor by children, although such prohibitions are included implicitly in the Labor Act; however, such forms of labor are not known to occur.

 

 d. Status of Child Labor Practices and Minimum Age for Employment

 

The minimum age for the full-time employment of children is 15 years, and children generally remain in school until this age. Children over 13 years of age may be employed in light duties for not more than 9 hours per week during the school year and 15 hours otherwise. The employment of youths between the ages of 15 and 20 is regulated strictly; they may not work at night, on Sundays, or in hazardous or dangerous conditions. The State Secretariat for Economic Affairs effectively enforces the law on working conditions. Government officials inspect companies that allegedly employ children illegally after receiving complaints. Each year a few employers are fined or receive conditional sentences for violations of the law.

 

The Government does not specifically prohibit forced and bonded labor by children; however, such practices are not known to occur (see Section 6.c.).

 

 e. Acceptable Conditions of Work

 

There is no national minimum wage. The lowest wages fixed in collective bargaining generally are adequate to provide a decent standard of living for a worker and family. However, the Swiss Association of Trade Unions in a 1999 study found that 60,000 full-time workers (or 3.4 percent) fall below the poverty line, which is defined as earnings of less than approximately $15,500 (22,900 Swiss francs)--or half of the median wage.
 
The law sets a maximum 45-hour workweek for blue- and white-collar workers in industry, services, and retail trades, and a 50-hour workweek for all other workers. The law prescribes a rest period of 35 consecutive hours plus an additional half day per week. Annual overtime is limited by law to 170 hours for those working 45 hours per week and to 140 hours for those working 50 hours per week.

 

The Labor Act and the Federal Code of Obligations contain extensive regulations to protect worker health and safety. There have been no reports of lapses in the enforcement of these regulations, but the degree to which enforcement is effective is unclear. A 1998 law is designed to increase flexibility in the workplace and remove restrictions on women working at night. Workers have the right to remove themselves from work situations that endanger health or safety without jeopardy to their continued employment.

 

The law generally protects legal and illegal foreign workers; however, the law is not always respected in practice. Illegal foreign workers are not covered by mandatory health insurance in case of illness or accident. Wage discrimination against foreign workers is not permitted. According to an NGO, more than 50,000 foreign workers were vulnerable to abuse of their rights during their participation in the "underground economy" for long periods. Late in the year, many of these workers demonstrated for legal status and more worker rights by occupying churches in major cities for several days in cooperation with religious and human rights groups.

 

In June the Minister of Justice criticized many cantons for tolerating the use of illegal aliens, who earn substandard wages without protection and proposed improved worker legislation. Also in June, a Member of Parliament admitted the use of illegal workers over several years in his vineyards and operations.

 

 f. Trafficking in Persons

 

The Penal Code criminalizes sexual exploitation and trafficking in persons; however, trafficking in women for prostitution increased. The country is a destination and, to a lesser extent, a transit location. According to authorities, most persons trafficked in 2000 originated in Thailand, parts of Africa, or South America. An increasing number of trafficked women arrived in every canton from Eastern Europe, particularly Hungary, Russia, Ukraine, or other states of the former Soviet Union. A large number of women were trafficked from the Dominican Republic, Brazil, and Columbia (to Zurich and Ticino), and parts of Africa and Thailand (to Bern and Basel).

 

Trafficking in persons may result in prison sentence of up to 5 years; coercing a person into prostitution or restricting a prostitute's personal freedom can carry a sentence of up to 10 years in prison.

 

Because the investigation, enforcement, and prosecution of individual trafficking and related cases is the responsibility of the cantonal police authorities, the federal human trafficking office also supports the cantonal prosecution authorities with information concerning trafficking abroad.

 

SWITZERLAND - STANDARD WORKWEEK

The law sets a maximum 45-hour workweek for blue- and white-collar workers in industry, services, and retail trades, and a 50-hour workweek for all other workers. The law prescribes a rest period of 35 consecutive hours plus an additional half day per week. Annual overtime is limited by law to 170 hours for those working 45 hours per week and to 140 hours for those working 50 hours per week.

 

(Section 6.e. Acceptable Conditions of Work, Switzerland – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

SWITZERLAND - SOCIAL SECURITY

Social Security Office of International Programs:

 

http://www.ssa.gov/SSA_Home.html

 

SWITZERLAND - TOTALIZATION AGREEMENT WITH U.S.

Effective Date of Agreement: November 1, 1980.

 

Coverage and Social Security Taxes:

 

For employees sent by a Swiss employer to work in the U.S. for five years or less, taxes and coverage fall to Switzerland. If the employee is sent to work in the U.S. for more than five years, was hired in the U.S., or is a U.S. citizen, taxes and coverage fall to the U.S.

 

Certificate of Coverage Request: 

 

To establish an employee's exemption from coverage under the U.S. Social Security system, the Swiss employer must request a certificate from the compensation fund in Switzerland to which the employee contributes, providing the same information required for a certificate of coverage from the U.S.  Except that the employee's Swiss Social Security number should be shown rather than the U.S. number.

 

Minimum Credits Needed: 

 

An employee without enough work credits to qualify for Swiss benefits, but with at least one year of coverage under the Swiss system, may combine Social Security credits from the U.S. and Switzerland to meet eligibility requirements.

 

Summary of Social Security Benefits:

 

Retirement or old-age pensions are payable to male workers at 65 and female workers at 62. Workers under this age may qualify for disability benefits. Under family benefits, wives (no provisions for husbands) 62 or disabled, and children up to 18, receive full benefits. Survivor benefits are paid monthly to widows (not widowers) with a child, or if widow is age 45 or older and marriage lasted five years; benefits are also payable to children up to 18. There is no lump-sum death benefit.

 

Additional Information: 

 

For specific information on the Swiss Social Security program, visit or write the compensation fund of the canton in which the employee resides or one of its local branch offices, or write to:

 

Swiss Compensation Office

18 Avenue Ed. Vaucher

CH-1211, Geneva 28

 

See Totalization Agreements