Yearly appraisals are not required by law in Switzerland. However, between the requirements of certain collective bargaining agreements and the duty of care enshrined in the Swiss Code of Obligations, employers have good reasons to introduce them nonetheless. What does the law actually say? And why is it worthwhile to organize employee appraisals using software, for example? An overview.
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Even without a legal or contractual obligation, the yearly appraisal remains a key management tool for pursuing goals, identifying obstacles, and adjusting priorities.
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It is an effective tool for employee retention, allowing early signs of declining commitment to be identified before it leads to resignation.
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It also provides a structured framework for reflecting on the management relationship and preventing tensions that can impair teamwork.
No legal obligation for yearly appraisal interviews
The duty of care as the basis for dialogue
The Swiss Code of Obligations does not oblige employers to conduct annual one-on-one interviews. However, many companies rely on the so-called duty of care to establish regular and structured exchanges.
This obliges employers to ensure the health, safety, and development of their employees. The yearly employee appraisal thus becomes an appropriate time to discuss topics such as workload, work quality, further development of skills, or career prospects in depth.
Possible obligations under collective labor agreements (CLAs)
Collective labor agreements (CLAs) may well oblige employers to conduct individual meetings. A well-known example is the individual employee appraisal at the Swiss Broadcasting Corporation (SRG).
It is therefore worth checking your own industry or company CLA carefully: Are certain topics mandatory? Are there formal requirements for the process? Is documentation or signatures required?
Whether mandatory or not, the yearly appraisal is a strategically useful tool in Switzerland that companies can use in a targeted manner.
Why is a yearly appraisal useful even if it is not a legal requirement?
Better management of everyday performance
In day-to-day operations, there is often not enough time to take a step back and identify the causes of performance declines among individual employees or within the team. The yearly appraisal creates precisely this space. It helps to reveal performance drivers, obstacles, possible failures, or unspoken needs. On this basis, goals can be realigned, resources adjusted, or targeted support offered—based on concrete and comprehensible indicators.
Prevent declining commitment at an early stage
If a high-performing person feels that they are not being listened to, sees no prospects for development, or feels that their own wishes are being ignored, their commitment can gradually decline and even lead to resignation. When qualified employees leave without warning, it is often too late and too costly to take countermeasures. This is where the yearly appraisal is an ideal opportunity to identify early warning signs: motivation, expectations, mental stress, or satisfaction with the current role.
Good to know: Gallup's State of the Global Workplace 2025 report shows that global employee engagement will have fallen to 21 percent by 2024.
Clarify cooperation with superiors before it becomes stressful
Performance is not always the real problem; rather, it is cooperation with superiors. Lack of recognition, misunderstandings, or simmering tensions are rarely addressed openly in everyday life and intensify without a formal framework.
The yearly appraisal creates space for an objective exchange: What is going well? Where are the sticking points? What should be adjusted? It does not resolve all conflicts, but it prevents unspoken issues from becoming permanent obstacles.
Without a legal obligation, the decision remains with the company. However, if the annual employee appraisal is consciously prepared and conducted in a structured manner, it serves as a reliable point of reference for monitoring performance, adjusting goals, and listening to employees.
