1. Labor quality and structure
Vocational education and training in Switzerland is rigorous and solid, well-trained, focusing on dual-track education, and apprenticeship training covers a wide range of various manufacturing and service industries. The Swiss education system is of high quality. After completing vocational training, employees from all walks of life must first obtain a "Certificate of Suitability" before they can formally take up employment. The Swiss labor force is of high quality. About 1/3 of the labor force has a higher education degree. Switzerland is famous for its employees who can use multiple languages. In addition to their mother tongue (German, French and Italian), Swiss primary school students begin to learn the second official languages ??and English. Swiss managers have deep international experience, and Switzerland's labor force participation rate of about 68.2% is also one of the highest in Europe. Unemployment in Switzerland has remained low for many years, between 1% and 4% for the past decade, and Switzerland's unemployment rate in 2019 was 2.3%.
Switzerland has a high salary standard, and the generous salary level also attracts high-quality talents from all over the world to come to work. Although wages are high in Switzerland, the "unit labor cost" is an important determinant for employers. According to a press release issued by the Swiss Federal Statistical Office on April 21, 2020, the average monthly salary for all types of jobs in Switzerland in 2018 was CHF 6,538 (CHF 6,067 for women and CHF 6,857 for men).
2. Labor Law
Compared with the regulations of EU countries, Swiss labor laws are significantly less, and are only governed by the "Swiss Federal Obligation Law (Obligationenrecht / OR, SR 220)" (regulating individual employment contracts, collective labor agreements and standard employment contracts), "Swiss Federal Labor Law". (Arbeitsgesetz / ArG for short, SR 822.11)" (regulating basic health and safety, working hours and rest periods, young people, pregnant to breastfeeding women), "Accident Prevention Act" (regulating work safety) several laws .
Swiss employees generally work 40 to 44 hours a week. The legal maximum working hours in Switzerland have remained stable over the past few decades. Industrial companies have a maximum working week of 45 hours; small and medium-sized department stores have the longest working week. The working hours are 50 hours. If the number of hours worked per week is exceeded, it is considered overtime (according to the law, each employee may not work more than 2 additional hours per day, and the maximum number of working hours per week is 45 hours, the additional hours per year for employees shall not exceed 170 hours; employees with a maximum weekly working hours of 50 hours shall not exceed 140 additional hours per year). Those who work overtime must be compensated with a 25% extra wage for extra hours worked, unless compensated by paid time off within a reasonable time frame. In contrast to many countries in Europe, overtime or extra work in Switzerland does not require the consent of the union, as long as it does not exceed the time limits stipulated by the above-mentioned laws, nor does it require permission from the government.
In Switzerland, all employees are entitled to at least 4 weeks of paid leave per year (5 weeks of paid leave for young people under the age of 20), and all employees are entitled to at least 2 weeks of continuous vacation. Part-time employees are also entitled to paid leave in proportion to their standard working hours. According to the collective labor agreement, a longer period of paid vacation is usually stipulated. Employees over 50 years old can generally get 5 weeks of paid vacation per year, but there is no additional vacation allowance in Switzerland. Switzerland has a national holiday. In principle, employees enjoy 9 days of statutory national holiday a year. However, because each state has the right to formulate holidays, the rest days vary from state to state. Although not mandated by law, most employees are entitled to marriage leave, bereavement leave, relocation leave, sick leave, etc.
Switzerland's social insurance system is built on three pillars: the state, the employer and the individual employee. Compared with other countries, Switzerland's overall tax and social insurance contribution burden is still moderate. Social insurance in Switzerland is divided into three pillars. The first pillar is compulsory insurance, which protects the insured and the beneficiary through government-mandated "endowment and survivors' insurance benefits" and "long-term disability insurance or incapacity benefits". For the most basic needs, the employer, the employee and the government taxpayer jointly pay the insurance premium according to a certain percentage of the employee's salary. The second pillar is also compulsory insurance. All people working in Switzerland must participate in insurance, so that retirees can maintain a consistent standard of living with sufficient pension after retirement. A certain percentage of the salary is jointly paid for the insurance premium. The third pillar is non-compulsory insurance, which is made by individuals voluntarily making contributions to banks or insurance companies. Swiss tax law provides tax deductions for third-pillar contributions. According to the law, employers must jointly pay the first and second pillars of insurance premiums with their employees, as well as unemployment insurance, family allowances, occupational accident insurance premiums, and insurance company administrative fees. Men reach the age of 65 and women reach the age of 64 to receive pensions from the first and second pillars.
Pregnant employees are entitled to a maternity allowance of 80% of their normal wages during childbirth, up to a maximum of 196 Swiss francs per day for 14 weeks, and the employer may not dismiss the employed woman during pregnancy or within 16 weeks after childbirth, 8 days after childbirth. Weekly mothers do not need to work.
The Swiss social insurance system is perfect, and workers are protected. Switzerland's labor productivity ranks among the top in the world. Labor disputes are resolved through effective relations between labor and management, and strikes rarely occur.
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