Unpaid Salary: Employee Remedies in Switzerland

Obligation to Pay (art. 322 CO)

The employer must pay the agreed salary, due at month-end unless otherwise agreed (art. 323 para. 1 CO).

Steps for Unpaid Salary

1. Formal Notice

Written notice (registered letter) setting a reasonable deadline (5-10 days). For salary, default occurs automatically at the due date (art. 102 para. 2 CO), but written notice is recommended for evidence.

2. Default Interest

5% per annum on unpaid amounts from the due date (art. 104 para. 1 CO).

3. Immediate Termination (art. 337 CO)

The employee may terminate immediately if the employer fails to pay and does not remedy within a reasonable time after notice. Repeated or prolonged non-payment constitutes just cause (ATF 120 II 209). Entitles: salary until termination date, compensation for salary until ordinary notice period would have expired (art. 337c para. 1 CO), and up to six months' additional compensation (art. 337c para. 3 CO).

4. Debt Collection

File a debt collection request with the enforcement office at the employer's domicile (art. 67 LP). If the employer objects, obtain provisional removal of objection using the written employment contract (art. 82 LP).

5. Court Action

Free for disputes up to CHF 30,000 (art. 113 para. 2 let. d CPC). Mandatory conciliation (art. 197 CPC). Simplified procedure up to CHF 30,000 (art. 243 para. 1 CPC).

Prescription

Five years from each monthly salary becoming due (art. 128 ch. 3 CO).

Privilege in Bankruptcy

Salary claims for the last six months before bankruptcy have first-class priority in collocation (art. 219 para. 4 LP). Insolvency insurance (unemployment fund) covers the last four months' unpaid salary (art. 51 UICA).

Salary Withholding

The employer may not unilaterally withhold salary. Set-off is limited to the attachable portion (art. 323b para. 2 CO).