Six points that are important in the employment contract

According to the latest labor market study by personnel service provider Robert Half, Swiss professionals have good career prospects. However, anyone who is about to sign a new employment contract should pay attention to a few points or negotiate them well.

If you negotiate important points in your employment contract wisely, you can look forward to a successful career with optimism (Photo: Fotolia.com)

According to the OECD, Switzerland's employment rate continues to rank among the world leaders. Job prospects remain very good. According to the latest labor market survey by Robert Half, 71 % of Swiss companies would like to hire new employees. At the same time, however, 70 % of the 100 HR managers surveyed fear that key employees will sign with another company in the next twelve months. But before signing, applicants willing to switch should check the new employment contract carefully. The specialized HR service provider has compiled the most important legal and strategic aspects in terms of drafting employment contracts in a checklist. A well-negotiated employment contract helps to regulate mutual requirements and wishes before the start of an employment relationship. Below are six points that employees should pay particular attention to in the employment contract.

  1. Form of the contract: The individual employment contract is not subject to any formal requirements and, with the exception of apprenticeship contracts, can also be agreed orally. Nevertheless, it is advantageous for the employee to conclude a written contract. Oral side agreements are also not advisable. These should be included in the contract in writing in appropriate clauses.
  2. Job Title and Area of Responsibility: In the employment contract, the job title should appropriately reflect the employee's role in the company and his or her scope of duties and responsibilities should be clearly defined. This is because the position in the company determines which services the employee has to provide and whether the employer may assign additional activities. The larger the scope of duties, the greater the flexibility that the supervisor can demand in case of doubt. The employee should therefore check whether the employer can assign him areas of responsibility whose tasks he cannot or does not want to fulfill.
  3. Work location: The employment contract must include the place where the work is usually to be performed. It is also legally permissible to specify several locations or an area. In the case of a company with several locations, the employee should therefore ensure that a specific place of work is specified. If a corresponding passage is missing, the employer can demand the change between the different company locations. In the case of travel-intensive jobs, the employee's willingness to travel on business and the amount of time required for such travel should be recorded in writing. The same applies to the possibility of working in a home office.
  4. Compensation, bonus and other benefits: The employment contract should list the remuneration and all other entitlements to which the employee is entitled or which were promised in the salary negotiations. In addition to salary, these include allowances (overtime, shift work, etc.), special payments (Christmas bonus, vacation pay), contributions to the company pension, company car or local transport tickets, stock options, capital-forming benefits or bonus payments. If salary increases have been agreed, for example after the probationary period or periodically, this should also be set out in writing.
  5. Working hours & vacations: The weekly working time for employees in industry, for office personnel, technical employees and sales personnel in large retail businesses may not exceed 45 hours. For all other employees, the maximum weekly working time is 50 hours. Possible deviations such as the mandatory acceptance of overtime, working of overtime or shift, on-call and weekend duties should be documented. This also applies to agreements on the flexibility of working hours, such as the establishment of fixed attendance times or the management of flexible working time accounts. If the annual vacation entitlement is not specified in the employment contract, the employee is only entitled to the legally prescribed four weeks (five weeks up to the age of 20). Collective bargaining agreements often grant employees over the age of 50 a higher vacation entitlement. It is advisable for both parties to the contract to mention restrictions on the application for vacation in the employment contract. In this way, parents can plan their vacation for school vacations, while employers can impose a general vacation ban for boom periods.
  6. Non-competition: A non-competition agreement is quickly signed before starting work, but it can have a decisive influence on the employee's future career. The non-competition clause in the employment contract prohibits the employee from competing with his former employer after termination of the employment relationship, either for a third party or as a self-employed person.

"When drafting the contract, the applicant should ensure that the wording is clear and, in the event of any discrepancies, consult with the HR department or the future boss. In principle, making requests for changes is not an affront to the new employer;" comments Sven Hennige, Senior Managing Director Central Europe & The Netherlands at Robert Half. "If you are polite and firm, but not inflexibly demanding, you can discuss your requests openly and constructively. If the applicant has good arguments for his requirements and shows a willingness to compromise, he has a good chance that the employment contract will be changed according to his own needs and at the same time demonstrates important social skills for the future role in the company."

Source: Robert Half

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