Handbook for Investors. Business location in Switzerland.

for a specific period from unemployment insurance by applying
for short-time working. This is done to prevent dismissal as a
result of a temporary and unavoidable lack of work.
Dismissals are the last means that a company can resort to when
utilization levels fluctuate. In the event of mass redundancies,
Sections 335d – 335g of the Swiss Code of Obligations stipulate
that the employer
• must consult the employees, and
• must inform the cantonal labor office in writing.
Compared with other countries, Switzerland has highly investorfriendly
labor market provisions. It is relatively easy for companies
to appoint and dismiss employees.
Fig. 40: Appointments and dismissals (2008)
1 = hampered by regulation, 7 = employers have flexibility
in decision-making
1 Singapore 5.9
2 Denmark 5.9
3 Hong Kong SAR 5.8
4 Switzerland 5.6
5 Bosnia and Herzegovina 5.5
8 USA 5.4
43 Russia 4.2
50 UK 4.1
74 Ireland 3.8
77 China 3.8
103 India 3.2
111 Luxembourg 3.1
114 Netherlands 3.0
115 Belgium 3.0
116 Japan 3.0
118 Brazil 2.9
119 France 2.8
126 Germany 2.5
128 Italy 2.5
8.6 Social insurance.
The Swiss social insurance system is based on three coordinated
pillars: state-sponsored, employer-sponsored and personal plans.
Personal responsibility is a key factor in this system. As a result,
the overall tax and contribution burden remains modest by international
standards.
The three pillars of Swiss social security:
Pillar 1: This first level meets the basic needs of the insured or
beneficiary through the government-sponsored old age and
survivors’ pension (OASI), as well as long-term disability insurance
or incapacity benefit (DI). Both are compulsory and are
funded jointly through contributions (percentage of salary) by the
employer and the employee.
Pillar 2: The occupational pension plan (BVG), which supplements
the first pillar, makes it possible for retired persons to maintain
their accustomed standard of living after retirement. All persons
working in Switzerland must be insured. The plans are funded
through contributions (percentage of salary) by the employer and
the employee.
Pillar 3: Personal voluntary retirement plans of employees or
self-employed individuals cover additional personal needs, mainly
through bank and insurance savings. Contributions to individual
retirement plans enjoy preferential treatment under tax laws to
some extent.
These three basic pillars of social insurance are supplemented by
unemployment insurance, the compensation system for loss of
income due to military service or civil protection, maternity benefits
and family allowances, which are governed by cantonal law.
Source: World Economic Forum, The Global Competitiveness Report
2009 – 2010, www.weforum.org
Short-time working
www.treffpunkt-arbeit.ch
Languages: German, English, French, Italian
Handbook for Investors 2010
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