In labor law, significant importance is given to the prior or extrajudicial resolution of disputes. Thus, parties must attempt conciliation or submit to mediation before bringing the matter before the competent court (Articles 197 and 213 CPC). The conciliation procedure is governed by the Code of Civil Procedure (CPC). The conciliation authority is appointed by cantonal law. The mandatory passage through this step aims to reach an agreement between the parties during a hearing, to resolve the conflict amicably if possible. Conciliation authorities also have extended powers, particularly a decision-making power in disputes with low monetary value. At the parties' request, the conciliation authority may hold several hearings. However, the procedure must be concluded within one year (Article 203 para. 4 CPC). In disputes with a monetary value of at least CHF 100,000, the parties can mutually agree to waive the conciliation procedure (Article 199 CPC).
The conciliation procedure is initiated by a signed request for conciliation, which must specify the opposing party, the claims, and a description of the dispute (Article 202 para. 2 CPC). The conciliation authority notifies the opposing party of the request and simultaneously summons both parties to a hearing (Article 202 para. 3 CPC) within two months of receiving the request for conciliation (Article 203 CPC).
This stage of the procedure is free of charge (Article 113 CPC). Legal representation is permitted before the conciliation authority, and you may also bring a person of trust (Article 204 CPC). However, a party who employs a lawyer during this procedure cannot obtain any reimbursement for their lawyer's fees, even if they win the case. Additionally, no evidentiary procedure takes place during the conciliation hearing, as evidence administration is a judicial task.
However, the conciliation authority may request documents and conduct an inspection to understand the case (Article 200 para. 2 CPC). Personal appearance of the parties enhances the chances of successful conciliation. Representation is only allowed in exceptional cases (cf. Article 204 para. 3 let a, b, and c CPC). As mentioned, parties may be assisted, but the assisting person must remain in the background; the aim is for the parties to speak for themselves.
The conciliation procedure may result in an agreement between the parties, which has the force of a judgment (Article 208 para. 1 CPC), thus ending the procedure. Conciliation is successful when the defendant admits the plaintiff's claims (acquiescence), the plaintiff withdraws their claim (desistance), or both parties make concessions and reach a settlement (Article 208 para. 1 CPC). If conciliation is unsuccessful, the conciliation authority records the failure in the minutes and issues an authorization to proceed (Article 209 para. 1 let. b CPC).
The plaintiff is then entitled to bring the action before the court within three months of receiving this authorization (Article 209 para. 3 CPC). Upon the plaintiff's request, the judge may also issue a decision with the force of a judgment in disputes with a value not exceeding CHF 2,000.
Disputes related to employment contracts fall under the jurisdiction of the following courts:
Labor Court if the monetary value does not exceed CHF 30,000.
District Court if the monetary value is more than CHF 30,000 but does not exceed CHF 100,000.
Cantonal Property Chamber if the monetary value exceeds CHF 100,000.
The simplified procedure applies to property disputes with a monetary value not exceeding CHF 30,000 (Article 243 para. 1 CPC). This is applied by labor courts. The party initiates action by submitting a request that must contain at least a certain number of details and documents (such as the authorization to proceed issued by the conciliation authority). No detailed motivation is required. This procedure is free of charge.
The procedure is governed by the principle of inquisitorial social procedure. This principle imposes a heightened duty of inquiry on the judge. If the judge has objective reasons to suspect that a party’s allegations and evidence are insufficient, and if they know, based on the parties' statements and/or the case file, of relevant evidence, they must question the parties. Responsibility for establishing the facts is shared. However, the judge does not conduct investigations on their own initiative and is not tasked with prompting the parties to assert additional claims. Under the principle of inquisitorial social procedure, the court must only alert the party to facts they have failed to allege or prove when the party asserts a claim for which those facts are relevant. This principle aims to speed up the procedure, protect the economically weaker party, and allow individuals to act personally without the need for a lawyer.
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