A generally binding collective agreement forms the basis for employment relations within a specific sector. A collective agreement generally regulates working hours, holidays, notice periods and minimum wages. Each collective agreement is negotiated between the trade unions and employers’ associations. Some collective agreements cover all of Switzerland, while others relate to a specific canton.

Child Allowances

Family allowances are designed to offset some of the costs incurred by parents in looking after their children. They include child and education allowances and also the birth and adoption allowances introduced by individual cantons. The Federal Act on Family Allowances (Family Allowances Act) entered into force on 1 January 2009. This is a framework law that sets minimum standards for the whole of Switzerland. However, the cantons can make the necessary legislative adjustments to set additional and higher benefits. There are thus no signs of uniform provisions for the whole of Switzerland to lessen the administrative workload. Every employer must be a member of a family equalization fund.