It happens more often than people realise, particularly in the hospitality, cleaning and construction sectors. The boss says there’s a cash flow problem, that it’ll be sorted next week, and then next week turns into the following month. Many people put up with it out of fear, especially if they depend on that contract for their residence permit, and let time slip by thinking that if they didn’t make a claim straight away, they’ve already lost their right. That’s the first thing we need to dispel.
In Switzerland, wages must be paid by the last day of the month at the latest, in accordance with Article 323 of the Swiss Code of Obligations. If payment is not received, the first step is to send a letter with acknowledgement of receipt demanding payment within a specific timeframe; fifteen days is usually considered reasonable. If payment is still not received, you can take the matter to the Labour Court (Tribunal des Prud’hommes) in the place where you work or where the company is based, and here is something almost nobody knows: the conciliation procedure is free of charge for disputes up to 30,000 francs, which is precisely where the vast majority of these cases fall.
And the time limit for making a claim is not a matter of weeks or months. Wage claims, including the 13th month’s salary, overtime or unpaid holiday pay, become time-barred after five years, in accordance with Article 128 of the Swiss Code of Obligations. That said, if the company goes into administration, it is advisable to act very quickly, because the unemployment benefit scheme may cover the unpaid wages through insolvency compensation, but this must be claimed within 60 days of the declaration of administration. Trade unions such as Unia, particularly in sectors covered by collective agreements, offer free advice and often resolve the issue with a simple phone call to the employer before the matter reaches court.
A residence permit does not depend on claiming unpaid wages, and that, too, needs to be stated loud and clear, because it is this fear that holds people back the most. Claiming what you have earned is neither a luxury nor a risk; it is a right with a clear legal basis. The theory is simple. The difficult part, as is almost always the case here, is getting someone to explain it to you before six months have gone by without you being paid.