Collective agreement rules
Collective employment agreements set, by industry, weekly hours, premiums, holidays, minimum wages and often an obligation to insure sickness daily allowances; once declared generally binding, an agreement applies to every business in the industry, regardless of membership.
Definition
The Labour Act only draws the outer boundary — the collective agreement is usually stricter, and it is the agreement that payroll follows. Whoever observes only the statutory limits can still be paying wrongly.
Whether an agreement applies to a business depends on industry, activity and region, and is not always obvious. SECO keeps the register of agreements declared generally binding; in case of doubt the question is settled before the first payroll run, not after.
Where to read it
- Swiss Code of Obligations (SR 220)
- Labour Act (SR 822.11)
- SECO — State Secretariat for Economic Affairs
What the software must be able to do
Time tracking must calculate the rules of your own agreement: annual or weekly working time, premiums by time of day and weekday, holiday entitlement by age and years of service. Programs with statutory limits hard-wired are not enough.
Checked Aug 2026
More terms under Payroll, staff and expenses: Accident insurance (UVG) AHV contributions BVG and pension fund Construction agreement Coordination deduction Cross-border workers Employer’s payroll costs Expense flat rates Expense policy Extra-mandatory pension cover Family allowances Gross and net pay Holiday pay in cash Hospitality agreement Hospitality collective agreement IV and EO Maternity allowance Owner’s salary Payslip Pension (BVG) deductions Pillar 3a Private share Salary statement Secondary employment Sickness daily allowance (KTG) Staff meals Swissdec ELM Thirteenth month salary Unemployment insurance (ALV) Withholding tax Work permits Working-hours recording (ArG)