Sick Leave in Switzerland: Understanding and Managing It

Sick leave refers to a full or partial inability to work due to illness, regardless of its duration. It may be confirmed by a medical certificate or – in the case of short absences – by a simple notification from the employee to the employer. In Switzerland, absences due to pregnancy-related illness are also considered sick leave.

Why Clear Regulations Matter

A company policy or staff regulations should clearly define how sick leave is handled. The benefits include:

• Transparency about the rights and obligations of employers and employees.
• Fair and consistent treatment of all staff.
• Prevention of legal disputes.
• Option for employees to take out supplementary insurance.

Procedures and Employee Rights

A company policy should specify, among other things:

• Obligation to report illness immediately to a supervisor or HR.
• Requirement to provide a medical certificate from the 4th day of absence (a common practice).
• Compliance with the Swiss Code of Obligations (CO) and any applicable collective labor agreements (CBA).

Impact on Vacation Entitlement

According to Art. 329b CO, the employer may reduce vacation entitlement if an employee is unable to work for more than one month per year (due to their own fault). In the case of pregnancy, the period is extended to two months.

Employers may, however, choose to grant more generous conditions.

Salary Continuation During Sick Leave

There are two possible scenarios:

1. Without daily sickness allowance insurance (IJM/KTG) – application of Art. 324a para. 2 CO:
   • 1st year of service (after 3 months of employment): 3 weeks’ salary.
   • Longer periods apply thereafter, depending on years of service (e.g., Bernese scale: up to 6 months from 20 years of service).
2. With daily sickness allowance insurance (IJM/KTG) – minimum coverage:
   • 80% of the insured salary.
   • 720 days of benefits within 900 days.
   • At least 50% of the premium paid by the employer.

Higher benefits (e.g., 90% or 100% of salary) are possible, but result in higher premiums.

Illness and Vacation

• Illness during vacation: With a valid medical certificate, vacation days can be rescheduled – but only if the illness prevents the rest and recovery legally intended by vacation.
• Vacation during illness: Depends on the diagnosis. For example, recovery from depression may allow rest holidays, while a knee injury would rule out a ski trip. → Recommendation: always clarify with the insurer beforehand.

Termination During Sick Leave

Termination is possible, but the statutory protection periods under Art. 336c CO must be observed:

• 30 days in the 1st year of service.
• 90 days in the 2nd–5th years of service.
• 180 days from the 6th year of service onwards.

No protection applies during the probation period, for fixed-term contracts under 3 months, or for immediate termination for just cause.

If daily sickness allowance insurance exists, benefits are often paid even after termination of employment (up to 720 days).

Reducing Absenteeism

Short-term absences can often be reduced through:

• Good working conditions and employee appreciation.
• Promotion of work-life balance.
• Empathetic support during longer absences and safe reintegration.

External providers of workplace health management can also provide valuable support.

How quitt Business Helps

quitt Business simplifies payroll and absence management by handling:

• Salary calculation and payment during sick leave.
• Management of social security and withholding tax deductions.
• Coordination with compensation offices and daily sickness allowance insurers.
• Preparation of payslips and salary certificates.
• Legally compliant processes in line with the CO and CBAs.

👉 This saves you time and ensures transparent and fair handling.

Conclusion

Sick leave is part of working life. With clear rules and professional management, it becomes easier to handle – for both employers and employees.

With quitt Business, you have a complete solution for transparent and legally compliant payroll and absence management.‍