International staff, remote work from abroad, dual residence: an employment contract today must regulate more than salary and probation. A compact contract checklist.
The Swiss individual employment contract (Art. 319 et seq. CO) remains the standard vehicle. In international situations — staff resident or staying abroad, remote setups, dual residence — additional points arise that are missing in the classic boilerplate contract.
1. Applicable law and jurisdiction
In purely domestic relationships not an issue; but as soon as work is performed abroad, the mandatory rules of the state of activity must be observed — in particular minimum wages, working-time rules, dismissal protection. A blanket choice of Swiss law only applies in a limited way; in the EU, Art. 8 Rome I Regulation applies with a favourability comparison for the employee.
2. Social security
Cross-border commuters, remote employees and multi-country work trigger social security questions. Within the EU/EFTA, Regulation (EC) No 883/2004 determines jurisdiction — rule of thumb: those who work more than 25% in their state of residence are socially insured there. Telework agreements since 2023 raised this threshold to up to 49.9% for telework in an EU/EFTA state. An A1 certificate should be obtained before cross-border activity begins.
3. Withholding tax
Switzerland taxes employees without a settlement permit at source. In international situations, double-tax treaties also apply — the famous 183-day criterion, the economic employer, the permanent-establishment test. Recommendation: a clause obliging the employee to report every relocation of place of activity, and giving the employer the right to adjust contract terms.
4. Permit-related matters
If the employee holds a B, C or S permit, the contract should contain clauses on permit maintenance — who documents what, who bears the renewal costs, what happens upon loss of permit. Also important for third-country nationals with cross-border activity: a Swiss permit does not legitimise work abroad and vice versa.
5. Data access and data protection
International remote work means that Swiss personal data flows into other jurisdictions. Standard today: a clause on tool usage, business devices, prohibition on storing sensitive data on private devices, plus a GDPR-compliant data processing agreement for staff in the EU area.
6. Non-compete clauses
International non-compete clauses are only enforceable in Switzerland to a limited extent (Art. 340 et seq. CO). Geographic, temporal and substantive limitation must be proportionate — otherwise the clause is invalid or will be reduced by the judge. For weighty protection interests, a non-compete compensation is recommended.
7. Termination and protection periods
Protection periods under Art. 336c CO (illness, accident, maternity) also apply to international employees, provided Swiss law applies. Extraordinary termination due to loss of permit is sensitive and will be strictly reviewed by the court.