This publication complements our series of articles written by our lawyers on the subject of posted workers in Switzerland. Here, we focus specifically on compliance with social standards—such as worker protection and minimum wage requirements—in the context of participating in public procurement contracts in the Canton of Geneva.
For further information, our website offers numerous resources on posted workers, residence permits, taxation, social security, and Swiss labor law.
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I. Applicable law on public procurement contracts in Geneva
Swiss public procurement law is derived, on the one hand, from international treaties ratified by Switzerland, notably the GATT/WTO Agreement on Government Procurement of April 15, 1994, as revised (GPA 2012 – RS 0.632.231.422, adopted March 30, 2012) and its annexes, and the bilateral Agreement of June 21, 1999 between the European Community and the Swiss Confederation on certain aspects of public procurement (RS 0.172.052.68); and, on the other hand, from domestic law, specifically the Federal Act on the Internal Market of October 6, 1995 (LMI – RS 943.02). In Geneva, this legislation is implemented through the Intercantonal Agreement on Public Procurement Contracts of November 25, 1994, amended March 15, 2001 (AIMP, RSGe: L 6.05), and the Regulation on Public Procurement Contracts of December 17, 2007 (effective January 1, 2008) (RMP, RSGe: L 6 05.01).
It should be noted that the Canton of Geneva has not yet adopted the new Intercantonal Agreement on Public Procurement Contracts of November 15, 2019 (AIMP 2019). However, steps are underway for its adoption, including a public consultation launched in April 2024.
Finally, the Federal Act of June 21, 2019 on Public Procurement Contracts (LMP, RS 172.056.1) and its implementing Ordinance of February 12, 2020 (OMP, RS 172.056.11) apply only to federal markets—namely, those of the Confederation, Federal Institutes of Technology (EPFL and ETH Zurich), SBB, Swiss Post, and other federal entities. The LMP and OMP do not generally apply to procurements conducted by cantonal or municipal authorities.
II. Compliance with worker protection and employment conditions
A) Social requirements in public procurement contracts
Compliance with regulations concerning worker protection and labor conditions ensures fair and effective competition in public procurement contracts. It prevents bidders from undercutting social standards to offer lower prices and gain unfair advantage over competitors who comply with their social obligations.
Respect for social aspects is a legal requirement in public procurement contracts (Art. 11(e) AIMP; Art. 20(1) RMP; Arts. 12 and 26 AIMP 2019). It is a prerequisite for participation, meaning that bidders and their subcontractors must adhere to these rules to be eligible.
Case law confirms that public procurement contracts laws establish principles that all bidding companies must respect under penalty of exclusion (legal conditions). This applies particularly to compliance with worker protection and labor conditions, regardless of whether these relate directly to the company’s technical ability to fulfill the contract (ATF 140 I 285).
Worker protection standards mainly include rules on working and rest times, safety, health, and hygiene at work (Art. 3(e) AIMP 2019). These are found in public labor law provisions, including the Federal Act of March 13, 1964 on Work in Industry, Crafts, and Commerce (LTr, RS 822.11), its implementing ordinances (OLT 1 to 5; RS 822.111 to 822.115), and regulations on accident prevention (e.g., the Ordinance of June 18, 2021 on Safety and Health Protection for Construction Work (OTConst; RS 832.311.141), the Ordinance of September 27, 1999 on Crane Safety (RS 832.312.15), and the Federal Act of March 20, 1981 on Accident Insurance (LAA; RS 832.20)).
Labor conditions include minimum remuneration (including the 13th month salary), vacation and public holidays, overtime pay, protection against dismissal, and continued salary payments during illness, maternity, and military service. These derive from mandatory provisions of the Swiss Code of Obligations of March 30, 1911 (CO, RS 220), normative provisions of collective labor agreements and standard employment contracts (Art. 3(d) AIMP 2019), or, in their absence, the customary labor conditions in the region and sector (Art. 20(2) RMP; Art. 25 of the Geneva Act of March 12, 2004 on Labor Inspection and Relations (LIRT, RSGe J 1 05)).
Reporting and authorization obligations under the Federal Act of June 17, 2005 on Measures to Combat Undeclared Work (LTN, RS 822.41) also constitute a condition for participation (Art. 12(1) AIMP 2019). “Undeclared work” refers to paid or self-employed activities that violate legal requirements, such as those under foreign nationals legislation (e.g., employing undocumented workers) or social insurance law (e.g., failing to report employees).
In addition to procurement laws, the Federal Act of October 8, 1999 on Accompanying Measures for Posted Workers and Minimum Wage Controls in Standard Employment Contracts (LDét; RS 823.20) obliges employers to guarantee posted workers in Switzerland at least the working and pay conditions prescribed by federal laws, federal council ordinances, extended collective labor agreements (CCTs), and standard contracts (CTTs) as defined by the CO, covering the following:
- Minimum remuneration;
- Working and rest time;
- Minimum vacation duration;
- Health, safety, and hygiene at work;
- Protection of pregnant and postpartum women, children, and young workers;
- Non-discrimination, including equal treatment for men and women.
The overlap between public procurement contracts and posted worker legislation is substantial. Bidders may be required to comply with both collective agreements and customary practices, in addition to general labor laws like the CO and LTr, creating a complex normative framework.
Failure to comply with worker protection requirements may result in exclusion from bidding or, if the contract has already been awarded, revocation of the award (Art. 42(1)(f) and 48 RMP).
When evaluating offers, and no later than prior to awarding the contract, contracting authorities must consult the State Secretariat for Economic Affairs (SECO) lists of employers sanctioned under laws on undeclared work (LTN) and posted workers (LDét) to ensure compliance by bidders and subcontractors.
B) Collective labor agreements (CCTs)
A collective labor agreement (CCT) is a written contract between employers and employees governing the working conditions in a specific company, profession, or economic sector. It is regulated by Articles 356 to 358 of the Swiss Code of Obligations (CO).
The employers’ party may consist of:
- One or more individual employers;
- One or more employers’ associations.
The employees’ party may consist of:
- A trade union;
- Several trade unions.
There are three types of collective labor agreements:
- Company-specific CCTs concluded by a single company;
- Sectoral CCTs concluded by a group of companies in the same economic sector;
- Extended sectoral CCTs, which become binding on all companies within the sector, even if they did not sign the agreement, once officially extended by federal or cantonal authorities.
For posted workers in Switzerland whose employer is based abroad, only nationally or cantonal-wide extended CCTs approved by SECO and the Federal Department of Economic Affairs, Education, and Research (EAER) are mandatory. These extensions are based on the Federal Act of September 28, 1956, enabling the extension of the scope of collective labor agreements (LECCT, RS 221.215.311).
Currently, there are 45 nationally extended CCTs and 36 cantonal ones, including:
- The French-speaking Swiss interior finishing CCT;
- The national agreement for the main construction sector in Switzerland;
- The CCT for the metal crafts sector;
- The national CCT for hotels, restaurants, and cafés;
- The scaffolding sector CCT;
- The Swiss precast concrete products industry CCT;
- The artisanal bakery-pastry-confectionery CCT;
- The CCT for technical building trades in Geneva;
- The CCT for engineering offices in the construction and building technology sector in Geneva.
C) Standard employment contracts (CTTs)
A standard employment contract (CTT) is a regulatory framework issued by the state, defining the employment terms for a specific profession or economic sector. CTTs apply when no CCT exists.
Employers and employees in the covered sector must comply with the rules set forth in the applicable CTT.
There are two main types of CTTs, most of which are cantonal:
- Ordinary CTTs, issued by the Chamber for Collective Labor Relations (CRCT) upon request. Cantons are legally required to issue ordinary CTTs for agricultural and domestic workers.
- CTTs with binding minimum wages, introduced in cases of repeated and abusive wage undercutting. These wage levels become mandatory for all workers in the relevant sector.
In Geneva, there are about ten applicable CTTs. Only those extended by SECO apply to posted workers from foreign companies. These include:
- The federal domestic economy CTT;
- The Geneva domestic economy CTT (CTT-EDom);
- The CTT for stand assemblers (CTT-MStands);
- The CTT with mandatory minimum wages for the mechatronics sector (CTT-Méca);
- The CTT for home care and support organizations (CTT-OSAD).
D) Cantonal practices (usages)
They cover:
- Minimum wages, including the 13th salary;
- Night/Sunday work bonuses;
- Weekly working hours and exceptions;
- Overtime;
- Paid holidays and public holidays;
- Breaks;
- Meal and travel allowances;
- Insurance (sick pay);
- Occupational health and safety.
These documents are drafted by the Cantonal Office for Labor Inspection and Relations (OCIRT), based on extended or ordinary sectoral CCTs and field surveys by the Geneva Labor Market Observatory (OGMT). The OGMT uses a rigorous, standardized protocol to evaluate employment conditions in each sector.
Following a sectoral survey, the OGMT submits a summary report to the Employment Market Supervisory Council (CSME). The OCIRT then proposes practices, which the CSME must validate. In some cases, these surveys lead to the drafting of CTTs.
Geneva currently has about 30 such documents, covering sectors such as:
- Architecture;
- Ground handling for airlines;
- Building shell construction;
- Building metallurgy (Heating, Electrical, Tinsmithing, Locksmithing);
- Interior finishing;
- Engineering offices;
- Auto bodywork;
- Chemistry;
- Retail trade;
- Railway construction;
- Garages;
- Hotels, restaurants, and cafés;
- Network infrastructure;
- Mechatronics;
- Cleaning;
- Parks and gardens;
- Advertising;
- Security;
- Freight transport;
- Public passenger transport.
These practices play a major role in public procurement contracts in Geneva.
E) Obligations of bidders in the context of public procurement contracts in Geneva
As previously noted, bidders and any subcontractors involved in public procurement contracts must comply with worker protection provisions and applicable labor conditions as defined by collective labor agreements, standard employment contracts, or, in their absence, the customary working conditions in the relevant professional sector at the location where the work is carried out or where the company is headquartered or domiciled in Switzerland.
Article 32 paragraph 1 of the RMP, titled “participation conditions,” stipulates that only offers that include the following documents for both the bidder and their subcontractors will be considered:
(a) Certificates demonstrating that social insurance coverage for personnel is in compliance with the legislation in force at the bidder’s place of establishment and that the bidder is up to date with their contributions;
(b) A certificate confirming that the personnel assigned to work on Geneva’s territory:
(1°) Either the bidder is bound by the applicable sector-specific collective labor agreement in force in Geneva;
(2°) Or the bidder has signed a commitment with the cantonal office to respect the professional practices in effect in Geneva (“usages”), particularly regarding retirement benefits, sick pay insurance, accident insurance, and family allowances;
(c) A certificate from the relevant tax authority demonstrating that the bidder has fulfilled its obligations concerning withholding tax on wages, or a declaration that the bidder does not employ personnel subject to this tax;
(d) A declaration from the bidder undertaking to respect the principle of equality between men and women.
To obtain the certificate mentioned in paragraph 1(b)(2), the bidder must:
- Review the local practices of their profession with the cantonal office;
- Sign an official undertaking to comply with these practices concerning their staff assigned to work on Geneva territory;
- Submit the certificates described in paragraph 1(a) at the time of signing this undertaking.
Therefore, any company wishing to participate in public procurement contracts in Geneva must submit, at the time of the bid, a certificate confirming compliance with local labor conditions applicable to the sector for which it is bidding.
The request (including the undertaking and certificate) is made online and issued by the OCIRT upon payment of a CHF 60.- fee (for each document). The certificate is valid for 3 months.
If no practices have been defined (“usages”, bidders must comply with the mandatory provisions of both private and public labor law, including the CO, LTr, LDét, LTN, and the Gender Equality Act, as well as social security regulations (AVS, LAA, LPP). The company must also respect the cantonal minimum wage and avoid wage dumping. Salaries must be calculated using the official online wage calculator.
Switzerland does not have a federal minimum wage. However, several cantons—including Geneva—have introduced statutory minimum wages through popular vote. In 2025, the legal minimum wage in Geneva is CHF 24.48 per hour, or approximately CHF 4,243.20 per month for full-time employment (40 hours/week). This wage applies to all workers, including cross-border commuters, provided they are employed on Geneva’s territory.
Finally, bidders must not appear on either of the two blacklists published on the SECO website:
Entities listed on either blacklist cannot be awarded public procurement contracts during the exclusion period, regardless of the value or type of procedure (direct award, invitation to tender, open procedure, selective procedure, competition, parallel design mandates).
In addition, in Geneva, the OCIRT also publishes a public list of companies that do not comply with professional practices in their economic sector, the LDét, or the LTN.
This list includes:
- Companies for which the OCIRT has issued a refusal to grant the certificate linked to public procurement access (Art. 45(1)(a) LIRT);
- Companies excluded from public procurement contracts by OCIRT (Art. 45(1)(c) LIRT);
- Foreign companies banned from offering services (Art. 9(2)(b) LDét);
- Companies found to be in violation of the LTN (Art. 13).
Sanctions from other cantons are not included in this Geneva-specific list.
It is important to note that public procurement law is highly formalistic. The Administrative Chamber of the Geneva Court of Justice has reiterated this on several occasions (see Judgment of November 9, 2021, ATA/1193/2021), particularly when confirming the exclusion of bids based on the failure to provide the required certificates specified as participation conditions in the call for tenders.
According to the Court, the contracting authority must review the admissibility of bids and assess them in strict compliance with procedural formalism, ensuring respect for the principle of immutability of submitted bids and equal treatment of all bidders, as guaranteed by Article 16(2) RMP.
This formalism is deemed essential to enforce the obligation of equal treatment during the admissibility review and evaluation phase. The Federal Supreme Court has validated this formalist approach. Furthermore, courts have ruled that, regarding certificates, the contracting authority may expect the bidder to provide the required documents in a manner that clearly demonstrates compliance—without further research, interpretation, or extrapolation.
The Federal Supreme Court has also confirmed that the constitutional guarantee against excessive formalism does not require the contracting authority to contact a bidder when a bid is deficient. The Geneva Court of Justice has consistently upheld this strict approach, which the Federal Court has acknowledged and affirmed. Consequently, failure to submit valid worker protection certificates (or submission of expired ones) renders the company ineligible and results in immediate exclusion (see Judgment of March 22, 2016, ATA/256/2016).
Companies must therefore exercise particular caution on this point when participating in public procurement contracts.
F) Controls and sanctions
It is crucial to understand that participation conditions must be respected throughout the entire duration of the public procurement contract. Periodic inspections are carried out by the contracting authority within six months of the contract’s execution.
The OCIRT, along with the Parity Commission for Companies (IPE) and the various sector-specific parity commissions, is responsible for verifying compliance with professional practices across all economic sectors in the canton.
During such inspections, employers are required to grant OCIRT inspectors access to their premises (Art. 42(1) of the Regulation on the Implementation of the Act on Labor Inspection and Relations, RIRT, RSGe J 1 05.01). They must also keep available or provide any documents necessary to establish whether professional practices are being followed (Art. 42(2) RIRT). These documents notably include detailed work schedules (e.g., hours worked, start and end times, breaks, leave days, vacations; Art. 42(3)(e) RIRT).
In practice, public procurement contract inspections may take two forms:
- Planned on-site visits by inspectors (routine checks);
- Unscheduled checks initiated via phone, fax, mail, or email.
Under Articles 26A and 45(1) of the LIRT, when a company subject to compliance with professional practices under Article 25 LIRT fails to meet minimum working conditions and social benefits, the OCIRT imposes administrative sanctions as stipulated in Article 45(1) LIRT.
These may include, in particular:
- A refusal to issue the certificate required under Article 32(1)(b)(2) RMP;
- A ban from accessing public procurement contracts for up to five years (notably in cases of non-compliance);
- Fines amounting to several thousand Swiss francs, up to a maximum of CHF 60,000.
Sanctions are applied based on the seriousness, frequency, and circumstances of the violation. They may also be cumulative (Art. 45(2) LIRT), and may be combined with penalties provided under the LDét.
Furthermore, the names of sanctioned companies are added to publicly accessible lists, as previously mentioned.
Lastly, if a company fails to comply with labor conditions, the award of the public procurement contract may be revoked without compensation (Articles 42 and 48 RMP).
III) Gender equality in public procurement contracts
The principle of equal treatment between men and women is also a key element of fair and effective competition in public procurement contracts.
Bidders who pay women lower wages than men for work of equal value benefit from lower operational costs than their competitors, thereby distorting fair competition between bidders.
Article 8(3) of the Swiss Federal Constitution of April 18, 1999 (Cst, RS 101) states: “Men and women have equal rights. The law shall ensure both de jure and de facto equality, particularly in the family, education, and workplace. Men and women are entitled to equal pay for work of equal value.”
This principle is implemented through the Federal Act of March 24, 1995 on Gender Equality (LEg, RS 151.1) and further reinforced by cantonal legislation in Geneva, notably the Act of March 23, 2023 on Equality and the Fight Against Discrimination Based on Sex and Gender (LED-Genre; RSGe A 2 91).
In the realm of public procurement contracts, gender pay equality is a mandatory requirement (Art. 11(f) AIMP; Art. 21 RMP; Art. 23(2) LED-Genre; Art. 12 AIMP 2019).
Case law confirms that public procurement contract law imposes binding principles on all companies submitting tenders, under penalty of exclusion. This includes compliance with gender equality requirements, regardless of whether these directly affect the company’s capacity to carry out the contract (ATF 140 I 285).
In accordance with the above, bidders in Geneva must include in their tender documentation a declaration affirming their adherence to the principle of gender equality. They must also commit to ensuring that their subcontractors comply with this principle (Art. 32(1)(d) RMP).
Bidders or successful contractors may perform a wage equality analysis. The analysis must follow a scientifically valid and legally compliant methodology. Although this self-assessment does not replace official audits by the contracting authority or another competent body, the Swiss Confederation provides a free standard analysis tool called Logib.
This tool has two modules:
Module 1 uses a statistical method suitable for large companies with a significant number of employees;
Module 2 is designed for smaller businesses.
IV) Subcontracting and public procurement contracts
A subcontractor undertakes, in relation to the contractor, to perform work that the contractor owes to their own client. Subcontracting occurs when a bidder or contract awardee delegates part of the contract’s performance to a third-party company.
Subcontracting increases the number of parties involved and can elevate the risk of non-compliance with social standards.
In Geneva, bidders must declare, when submitting their offer, the type and share of services intended for subcontracting, along with the name and address or registered office of their subcontractors (Art. 35(1) RMP).
Each subcontractor must comply fully with the provisions of the RMP, in particular Articles 20, 21, and 31 to 33. Specifically, the documentation listed under Article 32 RMP must also be provided for each subcontractor.
Bidders must ensure, both at the time of submission and throughout the execution of the public procurement contract, that all subcontractors respect the applicable worker protection provisions and labor conditions in Geneva for their respective sectors (Art. 35(3) RMP).
The contracting authority may also require bidders to provide all necessary information and supporting documentation regarding the terms under which they plan to employ subcontractors.
Second-tier subcontracting is prohibited unless justified for technical or organizational reasons. Subcontracting in the construction sector is subject to specific rules (Art. 35(7) to (9) RMP).
A bidder may be excluded from the procedure if one of their subcontractors involved in the contract execution is subject to an exclusion ground under Article 42 RMP (for example, if they are sanctioned, fail to comply with health and safety regulations, etc.). In such cases, the contract award may also be revoked.
It should also be noted that subcontracting in the fields of structural and finishing construction works is subject to special rules under the legislation on posted workers, particularly regarding joint liability.