Work Contract Switzerland: The Complete Guide for Freelancers 2026

A work contract (Werkvertrag) in Switzerland governs the creation or delivery of a defined work in exchange for payment — regulated in OR Art. 363 et seq. (Code of Obligations). For freelancers and self-employed professionals, the work contract is the most common contract type: whether web design, carpentry, painting, or software development. Anyone who owes a result rather than a service needs a work contract. This guide explains everything you need to know in 2026 — from mandatory contents to defect notice and invoicing.

The Key Points at a Glance

• A work contract is formed by offer and acceptance — it requires no special form and is even valid orally. A written contract is strongly recommended, however.
• The standard warranty period is 2 years from acceptance — it can be extended or limited by contract.
• Progress payments of 30–50% are customary for orders from approx. CHF 5,000.00 and protect the contractor from payment defaults.
• The defect notice must be made immediately upon discovery — otherwise the client loses their warranty rights (OR Art. 370).
• A work contract can be terminated by the client at any time — but they must then pay for the work performed plus lost profit (OR Art. 377).

What Is a Work Contract? (OR Art. 363 et seq.)

The work contract is regulated in Articles 363 to 378 of the Code of Obligations. OR Art. 363 defines the work contract as follows: By the work contract, the contractor undertakes to create a work, and the client undertakes to pay an agreed price for it.

That sounds simple, but it has far-reaching consequences. The core of a work contract lies in the result. The contractor does not simply owe time or effort — they owe a finished, functioning work. This fundamentally distinguishes the work contract from an employment contract (where you owe working time) and from a mandate/agency contract (where you owe a service without a guarantee of results).

What exactly constitutes a "work" is determined by the agreement. Typical examples:

• A carpenter builds a kitchen — the work is the finished, installed kitchen.
• A web developer programs a website — the work is the functioning website.
• A painter paints a facade — the work is the painted facade.
• A translator translates a book — the work is the translated manuscript.

The contractor bears the performance risk. If the work is not completed or does not function, the client has the right to refuse payment or claim defects. The contractor only receives money if the work meets the agreed requirements.

Formal Requirements

A work contract can be concluded orally, in writing, or through implied conduct. There is no statutory form requirement. In practice, however, a written contract is strongly recommended — only then can you prove what was agreed in case of disputes. A written work contract template helps capture all important points.

Work Contract vs. Employment Contract vs. Mandate — The Difference

These three contract types are often confused, but they are legally very different. The distinction is crucial for freelancers because it determines what obligations you have and what rights you are entitled to.

Work Contract (OR Art. 363 et seq.)

• What is owed: A defined result (the "work")
• Risk: The contractor bears the performance risk — they only get paid if the work is completed and free of defects.
• Independence: The contractor works independently and determines their own working hours and methods.
• Payment: Fixed price or time-based, payable upon acceptance of the work.
• Example: A carpenter builds a solid wood table according to the customer's drawing.

Employment Contract (OR Art. 319 et seq.)

• What is owed: Work performance in a subordinate relationship
• Risk: The employer bears the risk — the wage is owed even if the result does not materialize.
• Dependence: The employee is subject to instructions and has fixed working hours.
• Example: A salaried developer works in an agency's team.

Mandate / Agency Contract (OR Art. 394 et seq.)

• What is owed: A careful activity — no specific result
• Risk: The mandated party owes effort, not success. They are only liable for breach of duty of care.
• Payment: Only if expressly agreed; otherwise the mandate is gratuitous (OR Art. 394 para. 2).
• Example: A lawyer represents a client in court — they owe their best professional effort, not a case victory.

For freelancers, the distinction between work contract and mandate is often tricky. Rule of thumb: If you owe a concrete, deliverable result, it's a work contract. If you provide a service without a result guarantee, it's a mandate. A consultant who gives strategic recommendations usually has a mandate. A developer who delivers a functioning app has a work contract.

What Must a Work Contract Contain?

A good work contract protects both parties. It doesn't need to be long but should include the following elements:

1. Parties

Full name and address of both contracting parties. If you operate as a sole proprietorship, your name must be stated — a trade name alone is not sufficient. Anyone registered in the Zefix Commercial Register should state their registered company name.

2. Subject Matter of the Contract

What exactly is being produced? The more precisely the work is described, the less dispute arises later. In construction projects, reference is often made to a specification document or SIA-Norm 118 (SIA standard). In software projects, a requirements specification or mockup should be part of the contract.

3. Remuneration

Fixed price or hourly rate? When does payment become due? Are there progress payments? Anyone who charges VAT (MWST) of 8.1% must show the amount separately. The remuneration should be clearly regulated — including partial deliveries and milestones.

4. Dates and Deadlines

When does the project start? By when must the work be accepted? Are there partial deadlines for milestones? If you do not meet deadlines, contractual penalties may apply. Conversely, deadlines protect the contractor: acceptance is deemed to have taken place implicitly if the client does not accept the work despite being requested to do so.

5. Acceptance

How and when is the work accepted? Acceptance is the key legal moment — from this point the warranty period begins to run and the claim for remuneration becomes due. The contract should regulate what happens if the client refuses acceptance.

6. Warranty and Defect Notice

How long does the warranty last? What happens in case of defects? The standard under the OR is 2 years, but it can be adjusted by contract. The defect notice procedure should be defined in the contract — at the latest, it becomes clear here whether you follow OR Art. 370 or agree on your own deadlines.

7. Termination

Can the contract be terminated early? Under what conditions? OR Art. 377 allows the client to terminate at any time — but they must hold the contractor harmless. The contract should clarify what this means.

8. Payment Terms and Invoicing

Payment deadline, progress payments, final invoice — all of this should be in the contract. Anyone who wants to create a QR invoice should specify the QR-IBAN in the contract or on the invoice. The FTA (Federal Tax Administration) requires certain mandatory information on every invoice under Art. 26 MWSTV (Swiss VAT Ordinance) and OR Art. 469.

Progress Payment, Partial Invoice, and Final Invoice for Work Contracts

Invoicing for a work contract differs from other contracts because the remuneration is linked to acceptance. This means the final invoice only becomes due after successful acceptance. In practice, there are three types of payment:

Progress Payment (Advance Payment)

A progress payment is an advance on the remuneration still to be earned. It is customary for larger orders and protects the contractor from payment defaults. Typical values: 30–50% upon order confirmation. The progress payment invoice must contain all mandatory information under Art. 26 MWSTV — it is a full invoice, even though the work is not yet finished.

Partial Invoice (Milestone)

Partial invoices are issued after defined milestones. In a construction contract under SIA-Norm 118, the construction phases are typical milestones. In software projects, these may be functioning modules. Each partial invoice is a standalone invoice with VAT shown and a sequential invoice number.

Final Invoice

The final invoice is issued after acceptance of the work. It contains the remaining balance minus already paid progress and partial invoices. Precision is important here: missing or incorrect final invoices are a common point of dispute.

Mini-Story: Marco, Carpenter from Aarau

Marco is a carpenter and took on a kitchen installation for CHF 8,400.00. He sent a written work contract — but without a progress payment clause. The customer confirmed the order, Marco began work. After two weeks, he asked for an advance payment. The customer waved it off: "That's not in the contract." Marco faced a problem: he had already bought materials for CHF 3,200.00 and invested 30 working hours — without payment security.

The solution: Marco called the customer, explained the situation, and sent a supplementary agreement. In it, he defined a progress payment of 30% (CHF 2,520.00) upon order confirmation and a partial invoice of 40% (CHF 3,360.00) after cabinet installation. The final invoice of CHF 2,520.00 followed after acceptance. The customer agreed, paid the progress payment within 14 days, and the final invoice after acceptance without delay.

Marco's lesson: Progress payment clauses belong in every work contract from CHF 5,000.00. Anyone who uses professional invoicing software for freelancers can manage progress, partial, and final invoices automatically and never lose track.

Defect Notice and Warranty: Your Rights and Obligations

The warranty for work contracts is regulated in OR Art. 367–371. It is one of the most important areas — this is often where it is decided whether a project ends financially successfully or becomes a fiasco.

What Is a Defect?

A defect exists when the work does not have the agreed characteristics. This can mean: incorrect dimensions, missing functions, material defects, incomplete delivery. Important: The defect must have existed at the time of acceptance — damages arising later from improper use are not defects.

The Defect Notice (OR Art. 370)

The client must report defects immediately upon discovery — the law speaks of "without delay." This means: without culpable hesitation. Anyone who waits weeks loses the right to warranty. The defect notice should be made in writing and include the following points:

• What the defect is (precise description)
• Where the defect occurs (location, component, function)
• Photos or evidence
• Demand: rectification, price reduction, or rescission

Warranty Period

The standard warranty period is 2 years from acceptance (OR Art. 371). For real estate, it can be up to 5 years. The period can be modified by contract — both shortened and extended. However, a shortened period is only effective if it is not hidden in a pre-printed standard contract.

The Three Warranty Rights

If a defect has been rightfully reported, the client has three options (OR Art. 368):

1. Rectification — the contractor must remedy the defect. This is the standard case.
2. Price reduction — the client keeps the work but pays less. The amount depends on the reduction in value.
3. Rescission — the contract is reversed. The work goes back, the price is refunded. This is the most severe measure and only justified for serious defects.

The order is not mandatory — the client can choose. In practice, the contractor usually demands the right to rectify before the client can demand price reduction or rescission.

Mini-Story: Sarah, Web Developer from Basel

Sarah developed an e-commerce platform for a client for CHF 12,000.00. Three months after acceptance, the customer reported: the checkout didn't work in older browsers. Sarah had documented the acceptance with an acceptance protocol — it recorded the tested browser compatibility. The customer had agreed at acceptance that the tests were complete.

Sarah had agreed a warranty period of 12 months in the work contract — the defect was within this period. She investigated the incident, found that there was indeed a bug, and fixed it within two days. The rectification cost her CHF 800.00 in working time. Without a written agreement, the customer could have demanded a warranty of up to 2 years — Sarah had contractually reduced the risk.

Sarah's lesson: An acceptance protocol and a clear warranty clause protect both parties. Anyone who documents acceptance in writing knows exactly when the warranty begins. Swiss invoice templates help to design the acceptance protocol properly as well.

Terminating a Work Contract — Is That Possible? (OR Art. 377)

Yes, a work contract can be terminated — but the rules depend on who terminates and at what stage the project is.

Termination by the Client

OR Art. 377 gives the client the right to terminate the work contract at any time. They do not need a reason. But: they must hold the contractor harmless. This means:

• They pay for the work already performed (according to the value of the service).
• They compensate for lost profit (what the contractor would have earned if the contract had been fulfilled).
• They bear the costs incurred by the termination (e.g., already ordered materials).

This rule protects the contractor. They are not left empty-handed if the customer cancels halfway through. The calculation of lost profit can be disputed — so it makes sense to define a termination regulation in the contract that specifies the calculation.

Termination by the Contractor

The contractor can only terminate the contract if there is an important reason. OR Art. 377 para. 2 gives examples: if the client breaches their duty to cooperate (e.g., they do not provide data the contractor needs) or if they fall into arrears (e.g., they do not pay the progress payment).

The termination must be made in writing and state the reason. It is excluded if the contractor caused the termination reason themselves.

Mini-Story: Thomas, Painter from St. Gallen

Thomas is a painter and took on a facade job for CHF 15,000.00 under SIA-Norm 118. After three weeks, the customer reported: he wanted to terminate the contract because he had received a cheaper offer. Thomas had already borne the scaffolding costs of CHF 2,800.00 and painted 40% of the surface.

Thomas relied on OR Art. 377. He calculated: CHF 6,000.00 for the work performed, CHF 2,800.00 scaffolding costs, CHF 1,500.00 materials, CHF 3,000.00 lost profit. Total claim: CHF 13,300.00. The customer tried to negotiate, but Thomas had documented everything cleanly. After a written reminder, the customer paid the full amount.

Thomas's lesson: Anyone who documents the work performed is in the right in case of termination. Time records, material invoices, and milestone confirmations are worth their weight in gold.

SIA-Norm 118: When It Matters (Construction Industry)

In the construction industry, SIA-Norm 118 (SIA standard) is the standard work contract. It supplements the OR with detailed provisions specifically tailored to construction work. SIA-Norm 118 is published by the Swiss Association of Engineers and Architects and is binding in practice when agreed in the contract.

What Does SIA-Norm 118 Regulate?

• Construction description and plans — what exactly is being built
• Remuneration — fixed price or global price, with clear rules for variations
• Acceptance — formal acceptance procedure
• Warranty — standard 2 years, for underground construction parts 5 years
• Defect notice — must be made in writing within the warranty period
• Security — guarantees and retention agreements

SIA-Norm 118 is more complex than a simple work contract under the OR. But it offers more legal certainty for both parties — especially for larger construction projects from CHF 50,000.00, it is the standard.

SIA vs. OR — Which Applies?

If SIA-Norm 118 has been agreed in the contract, it applies in addition to the OR. The OR remains the basis, but SIA-Norm 118 overrides individual provisions. Example: The warranty period under the OR is 2 years. SIA-Norm 118 can extend this to 5 years for certain construction parts.

For freelancers outside the construction industry, SIA-Norm 118 is usually irrelevant. Anyone who develops software, consults, or designs does not need an SIA contract. But anyone who works as a tradesperson, architect, or construction contractor should know SIA-Norm 118 — and ideally use a contract based on it.

Work Contract Template: How to Structure Your Contract

If you don't want to involve a lawyer, you can create a legally sound work contract using a clear template. Here is a compact checklist for your work contract template:

1. Title and date — "Work contract dated date"
2. Parties — Name, address, UID number if applicable
3. Subject matter — Precise description of the work (with appendix if applicable)
4. Remuneration — Fixed price or time-based, incl. VAT (MWST) 8.1%
5. Progress payment — 30–50% upon order confirmation
6. Partial invoices — After milestones
7. Final invoice — After acceptance
8. Dates — Start, milestones, completion
9. Acceptance — Formal acceptance with protocol
10. Warranty — Duration and scope
11. Defect notice — Deadline and procedure
12. Termination — Conditions and consequences
13. Payment terms — Deadline, QR invoice, default interest
14. Applicable law and jurisdiction — Switzerland, contractor's place of residence
15. Signatures — Both parties

If you conclude several contracts a year, it's worth using invoicing software for freelancers that also manages contract templates. Magic Heidi offers templates and automated workflows — from CHF 25/month, significantly cheaper than bexio.

Common Mistakes with Work Contracts — and How to Avoid Them

In practice, we at Magic Heidi see the same mistakes over and over. Here are the most common — and the solutions:

Mistake 1: No Written Contract

Oral agreements are valid but hard to prove. Solution: Send a written summary after every oral conversation — at least by email with a request for confirmation.

Mistake 2: Vague Service Description

"Build a website" is not a service description. Solution: Define scope, functions, number of pages, design templates, and interfaces. Attach a requirements specification.

Mistake 3: No Progress Payment Clause

Without a progress payment, the contractor bears the full financial risk. Solution: 30–50% progress payment upon order confirmation, up to 60% for large orders.

Mistake 4: No Acceptance Protocol

Without an acceptance protocol, it's unclear when the warranty begins. Solution: Formal acceptance with checklist and signatures from both parties.

Mistake 5: Forgotten Defect Notice

The customer reports defects too late — and loses their rights. Solution: Agree on a clear defect notice deadline in the contract and communicate it to the customer.

Work Contract and Invoicing: What You Need to Know

Invoicing for a work contract follows the same rules as for other contracts — with one special feature: the final invoice is linked to acceptance.

Under Art. 26 MWSTV (Swiss VAT Ordinance) and OR Art. 469, every invoice must contain the following information:

• Full name and address of invoicing party and customer
• Invoice date and sequential invoice number
• Description of the service and period
• VAT rate (8.1%) and VAT amount shown separately
• Total amount
• Payment deadline and bank details

The same applies to progress and partial invoices. Anyone who wants to create a QR invoice must specify the QR-IBAN correctly. With Magic Heidi, you do this automatically — including VAT calculation, invoice numbering.

If a customer doesn't pay, you have several options: reminder, agree on installment payments in Switzerland, or ultimately initiate debt collection in Switzerland. A clean work contract with clear payment terms is the best foundation.

Conclusion: Work Contract Switzerland — Your Checklist for 2026

A work contract in Switzerland is not rocket science — but it needs to be carefully crafted. Anyone who knows the mandatory contents under OR Art. 363 et seq., formulates a clear service description, agrees on progress payments and partial invoices, and handles defect notices professionally has already avoided 80% of disputes.

The most important points summarized:

• Put it in writing — even though oral is valid.
• Define the service precisely — scope, functions, quality.
• Agree on progress payments — 30–50% upon order confirmation.
• Document acceptance — with protocol and signature.
• Clarify the warranty — duration, scope, defect notice deadline.
• Regulate termination — conditions and costs.
• Invoice correctly — observe Art. 26 MWSTV and OR Art. 469.

With Magic Heidi, you have a Swiss invoicing software that helps you with contract management, invoicing, and reminder management. From CHF 25/month — the affordable bexio alternative, specially for Swiss freelancers. Try it now and handle your next work contract professionally.

This article provides general information and does not replace legal advice. For specific individual cases, consult a lawyer.