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Employer

This is what you need to know about the new minimum wages in the CBA Staff Leasing

From the minimum wage in Switzerland to the introduction of minimum wages through the collective labour agreement and more detailed information on personnel leasing, you will find the most important information summarised briefly and clearly in this article.
Mike Haas

01.10.2022

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4 min reading time

Is there a minimum wage in Switzerland?

In Switzerland, the state has so far intervened only cautiously and selectively in the working conditions of the economy. Although the Code of Obligations and the Labour Code with its ordinances provide a certain framework, there is a relatively large degree of leeway, especially with regard to wage conditions. With the exception of the regulations in the standard employment contract for domestic workers, there is no national minimum wage in Switzerland. In recent years, however, more and more cantons have introduced their own minimum wages. The electorates of the cantons of Jura, Geneva, Ticino, Neuchâtel and Basel-Stadt have each approved a cantonal minimum wage. In all other cantons, minimum wages are traditionally negotiated by the private sector and industry-specific in so-called collective labour agreements (GAV).

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Introduction of minimum wages through collective labour agreement

A collective labour agreement is concluded when an employers' association (e.g. trade union) agrees with an employer (e.g. Migros, Swisscom, etc.) or an employers' association (e.g. association of master builders, GastroSuisse, etc.) on binding minimum standards for working conditions. The negotiated conditions concern in particular working hours, notice periods, sickness and accident benefits and, precisely, minimum wages. In principle, they apply only to the parties to the agreement, i.e. to the employees affiliated to the union and the employers or the members of the employers' association. In sectors without a collective agreement there is a certain potential for abuse. In the past there have been cases of wage dumping in the construction, ancillary construction and hospitality industries. In addition, the problem has been exacerbated by foreign companies that have carried out contracts in Switzerland but have not complied with the local laws. To counteract the distortions of competition caused by this, the Federal Council can, at the request of the contracting parties and under certain conditions, declare a collective labour agreement generally binding. As a result of the declaration of general applicability, the provisions of the collective labour agreement no longer apply only to the contracting parties, but to all companies and employees working in the relevant sector. Accordingly, foreign companies that carry out orders in Switzerland must also pay their employees the Swiss minimum wage. The declaration of general applicability of a collective labour agreement ensures a level playing field in this respect for all employers in the sector.

Is there a CBA for staff leasing?

In 2012, a collective labour agreement for all recruitment agencies was negotiated, the so-called GAV Personalverleih. The parties to the agreement were the trade unions Unia, Syna, KV Schweiz and Angestellt Schweiz as employee representatives and the employers' association swissstaffing. In the CBA Staff Leasing, the parties agreed on minimum standards that apply to all employees who are employed by a recruitment agency and are hired out to customers. The CBA Staff Leasing thus has an impact on those companies that employ temporary staff. In addition to the minimum wages, the CBA on Staff Leasing contains regulations on overtime bonuses, occupational pensions, daily sickness benefits, etc. that are generally binding. As a personnel service provider, Universal-Job AG is also subject to the provisions on minimum wages of the CBA Staff Leasing.

While the regulations of the CBA Staff Leasing apply to the temporary employees regarding, for example, overtime bonuses, these special regulations do not apply to permanent employees. Temporary employees are thus placed in a better position than permanent employees in certain constellations. An example: The accounting department is in high season at the beginning and end of the year. The closing work has to be finalised and the last bookings have to be entered. So the working days can sometimes take a little longer during this time. If the temporary accountant works more than 9.5 hours a day or 45 hours a week, she must receive an overtime bonus of 25%. This is irrespective of whether she works only 5 hours the next day or compensates for the extra hours in the following week. Her permanent colleague, who also works as an accountant, does not receive an overtime bonus for this time and is thus financially worse off.

Minimum wages for 2022 and 2023 according to CBA Staff Leasing

As with all collective agreements, the minimum wages for the CBA Staff Leasing are adjusted annually, or at least periodically. The parties to the CBA Staff Leasing have agreed to increase the minimum wages again for the years 2022 and 2023. The monthly wages will increase by CHF 40 per month in each of the next few years. For example, unskilled workers aged 20-50 in the standard wage region will earn a minimum of CHF 3,590 in 2022 and CHF 3,640 in 2023. Calculated on an hourly basis and including public holiday and holiday pay as well as 13th month pay, this corresponds to a minimum wage of CHF 23.58/hour for 2022 and CHF 24.12/hour for 2023.

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Advantages and disadvantages of minimum wages

Like everything in life, the CBA on Staff Leasing also has advantages and disadvantages. The greatest advantage of setting minimum wages can be seen in the objective of providing employees with a decent wage. At the same time, the introduction of minimum wages can effectively combat wage dumping. In addition, the equality of men and women with regard to wages is promoted, since the minimum wages are granted irrespective of the gender of the employee.

One disadvantage of the CBA Staff Leasing is that the company employing the worker may no longer be able to reward outstanding performance financially. This is the case if the increase in minimum wages in an industry affects a company that has only a limited wage budget. Once the increased wages are paid, the company no longer has any capital available to reward outstanding employee performance. In addition, it may also appear objectionable that, as described above, only the hired-out personnel are subject to the CBA Staff Leasing. While the employing company has to comply with the minimum wages of the CBA Staff Leasing with regard to hired personnel, it is not bound to any specifications regarding wage levels and bonuses for permanent employees. This can lead to the employment of leased personnel becoming financially unattractive for the company employing them because of the prescribed minimum wage level. This in turn has a negative impact on the 350,000 - 400,000 temporary workers in Switzerland.

The positive and negative points mentioned must be weighed against each other. It is the task of the respective contractual partners to ensure that the advantages and disadvantages are balanced.

about the author

Mike Haas

Head of Internal Services

Mike is an HR professional and a graduate in business administration with a CAS in labour law. With over 17 years at universaljob, he has a lot of experience with legislation in our industry. In his private life, Mike spends a lot of time in the mountains, be it climbing, skiing or on a ski tour.