Annual leave and public holidays in Switzerland: what employers need to know

Annual leave and public holidays are crucial elements of employment law in Switzerland, and understanding these entitlements is essential for international employers. With Switzerland’s unique approach to public holidays, determined by each canton rather than nationally, employers face distinct challenges when managing employee leave alongside strict labor regulations.

This guide aims to clarify the complexities of Swiss leave policies, highlight regional public holiday variations, and provide actionable advice for maintaining compliance with the help of the Swiss Employer of Record.

Statutory annual leave entitlements in Switzerland

Swiss labor law guarantees employees a minimum of 4 weeks paid annual leave. Employees under 20 are entitled to at least five weeks, offering younger workers additional time off. While four weeks is the legal baseline, many companies in Switzerland voluntarily offer more generous leave, particularly for long-serving employees or in competitive sectors.

Annual leave generally accrues on a monthly basis, with employees earning a portion of their annual allowance each month they work. Employers must keep detailed records of leave usage, ensuring that employees receive their full entitlement over the course of the year.

In some cases, unused leave may be carried over to the following year, but this is typically limited by employer policy or collective agreements. For example, leave carried over may need to be used by a certain date—often by the end of the first quarter of the following year—or else it may be forfeited. This encourages employees to take regular breaks rather than accumulating large leave balances. If an employee leaves the company with unused leave, Swiss law requires that it be paid out in cash.

Employers are responsible for not only granting leave but also ensuring that employees take it. Failing to provide leave or pressuring employees not to take their full entitlement can lead to legal penalties and damage the company’s reputation. Moreover, employers must clearly communicate their leave policies, ensuring that employees understand their rights and how to apply for time off.

To summarize all mentioned above, here is the list of what you should know about annual leave entitlements in Switzerland:

• Employees are entitled to at least 4 weeks’ paid annual leave, with 5 weeks for those under 20 years old.
• Leave accrues on a monthly basis but is typically granted in full at the start of the year.
• Employers must keep accurate leave records and ensure that employees take their legally mandated vacation.
• Unused leave can often be carried over, but it must generally be taken within a specific timeframe (e.g., by the end of the following year).

Public holidays in Switzerland: what’s different

One of the most unique aspects of Switzerland’s leave structure is its approach to public holidays. Unlike many countries with a standardized national holiday calendar, Swiss public holidays are set by the cantons. Public holidays can vary significantly depending on where an employee is based.

For instance, Geneva observes Jeûne genevois (Geneva’s fasting day), while Zurich does not. Ticino has additional Catholic feast days, reflecting its cultural and linguistic ties to Italy. Employers must be aware of these regional variations, as they determine whether a day is treated as a paid public holiday or a regular working day.

Swiss law does not require a minimum number of public holidays. Instead, each canton decides which holidays are official and whether they are paid or unpaid. The only exception is August 1, Swiss National Day, which is recognized nationwide as a paid public holiday. Employers must rely on cantonal rules and any relevant collective labor agreements for all other holidays.

Employers are generally obligated to offer compensatory time off or additional pay if employees are required to work on a public holiday. The specific arrangements vary depending on local regulations and company policies. Clear communication and transparent policies help employers meet their obligations while maintaining employee satisfaction.

Best practices for managing employee leave

Managing employee leave in Switzerland requires a clear and compliant leave policy. Employers should start by thoroughly understanding both federal labor laws and canton-specific public holiday rules. They must then establish a transparent process for requesting, approving, and tracking leave.

One best practice is to create a written leave policy that outlines accrual rates, carry-over rules, and procedures for applying for time off. The policy should also address how leave is handled during probation periods, for part-time workers, or in cases of long-term illness. By addressing these scenarios upfront, employers can prevent confusion and ensure consistency.

In addition to setting clear policies, employers should invest in reliable leave-tracking systems. These tools help HR teams monitor leave balances, approve requests, and ensure compliance with record-keeping requirements. Automating leave management reduces administrative workload and improves accuracy and transparency.

Another best practice is encouraging employees to take regular breaks throughout the year. Rather than allowing leave to accumulate, employers should foster a workplace culture that values rest and work-life balance. This approach improves employee well-being, reduces the risk of burnout, and increases overall productivity.

How a Swiss Employer of Record can support leave and holiday management

Managing leave and holiday entitlements can be particularly challenging for businesses without a legal entity in Switzerland. This is where a Swiss Employer of Record (EOR) can make a significant difference. An EOR serves as the legal employer for workers in Switzerland, handling payroll, benefits administration, and compliance on behalf of the client company.

Regarding leave and public holidays, an EOR ensures that employees receive the correct entitlements based on their canton of residence. The EOR tracks leave balances, manages carry-over rules, and handles any necessary compensatory time off for public holidays. By staying up-to-date on local labor laws and cantonal variations, the EOR takes the guesswork out of compliance.

A UK agency expanding into Switzerland faced challenges in managing payroll and learning the complexities of Swiss annual leave and public holiday entitlements. By partnering with an Employer of Record, they could offload these responsibilities entirely, ensuring compliance with local labour laws while simplifying their administrative processes. The agency owner gained peace of mind, knowing that all payroll and leave matters were handled accurately and efficiently.

With the EOR managing leave tracking and reporting, businesses can focus on their core operations rather than managing complex administrative tasks. The EOR also provides local HR expertise, helping employers address employee inquiries, resolve disputes, and maintain positive workplace relations.

Handle annual leave and holidays

Understanding and managing annual leave and public holidays in Switzerland is essential for maintaining compliance and ensuring employee satisfaction. By familiarising themselves with statutory leave entitlements, cantonal public holiday rules, and best practices for leave management, employers can create a transparent, fair, and legally compliant approach to time off.

A Swiss Employer of Record (EOR) can simplify the process for businesses without a Swiss legal entity. With an EOR handling compliance, payroll, and leave management, companies can enjoy the benefits of a Swiss workforce without the administrative burden.

Contact us today to learn how a Swiss EOR can help your business manage employee leave and holidays seamlessly, ensuring compliance and peace of mind.