New Working-Time Flexibility for
Eligible Start-Ups

On 28 October 2026, the Federal Council revised Ordinance 2 of the Swiss Labour Act, providing for targeted exemptions from the general provisions on working hours and rest periods for start-ups, provided that applicable conditions are met. The new regulation applies to employees working in start-ups who possess specific skills or work on specific projects (e.g. collaboration with different time zones, launch of a product), enjoy a high degree of autonomy in their work and their working time and hold a stake in the company’s capital through an employee share participation scheme.

From 1 December 2026, an amendment to Ordinance 2 of the Swiss Employment Act will give certain start-ups greater flexibility in organising working and rest times for certain employees. The new rules are narrowly targeted: they apply only where both the company and the employee meet specific conditions.

• Flexibility of Working Hours:

For eligible employees, the span of daytime and evening work may be extended (from the ordinary 12.5 hours) to a maximum of 17 hours, including breaks and overtime. The rest period after a working day must be at least nine hours and average at least 11 hours over a four-week period. Where an assignment is strictly necessary, an eligible employee may also work up to six Sundays and ten nights per year without a permit. However, the general rules on the compensation of night/Sunday work regarding salary surcharge (25% and 50% respectively) and compensatory rest periods remain in place

• Eligible Employees

To qualify, an employee must be an adult with specialist skills essential to the business or the relevant projects. Such projects must involve either international collaboration across different working hours/time zones or a temporary phase critical to the company’s survival or the launch of a product or service. They must have substantial autonomy and generally be able to set their own hours (at least 50%), as well as an appropriate equity interest under a documented employee participation plan (e.g. ESOP).

• What is a "Start-up"?

According to the newly introduced definition in the Ordinance, start-ups are companies limited by shares (Aktiengesellschaft), i.e., other forms of companies cannot profit from the flexible rules. In addition, it must be a technology-driven Swiss corporation in the development stage, with a scalable business model and innovative, knowledge-intensive products or services. It must generally have been founded within the past five years – or within the past ten years if it has not yet generated positive operating cash flow.

Flexibility comes with safeguards: Employers must record the daily hours worked by affected employees, keep the specified equity-plan and employee records available for inspection, and introduce preventive health measures – including measures addressing psychosocial risks.

• Other Developments: Annual Working Time Model in Auditing, Fiduciary Services and Tax Advisory

The amendments to the Ordinance for start-ups follow a recent similar amendment for service providers in the fields of auditing, fiduciary services and tax consultancy. Accordingly, employees can work in an annual working time model if they meet the following criteria: (i) specialists in the field of auditing, fiduciary services and tax consultancy, (ii) annual income of more than CHF 120'000 and (iii) a qualification at Bachelor’s level or at vocational training level 6 with, and (iv) a high degree of autonomy in their work.

However, weekly working time on an annual average must not exceed 45 hours and the weekly working hours are limited to 63 hours per week. Furthermore, the daily rest period after a working day must be at least nine hours and, on average over four weeks, 11 hours. The employees are allowed to work on a maximum of nine Sundays for up to five hours per day without a permit. Sunday work exceeding five hours per day would be subject to a permit.

For start-ups considering the new rules, the first step is to assess whether both the company and the relevant employees meet the eligibility requirements.

Where these requirements are met, employers must ensure that daily working hours are recorded, maintain the required documentation and implement preventive health measures, including measures to address psychosocial risks.