Abstract
In a new landmark decision (4A_7/2018 of 18 April 2018), the Swiss Federal Supreme Court revisited its earlier decisions regarding the subject-matter arbitrability of domestic employment law disputes. In line with an earlier decision, the Court held that a domestic employment law dispute cannot be brought before an arbitral tribunal if it concerns mandatory claims according to Articles 361 and 362 of the Swiss Code of Obligations. However, mandatory claims in employment law are numerous and cover, for example, all claims in connection with an employee’s termination, overtime, and reference letters. The Court considered that employees cannot waive these mandatory claims during the contractual relationship and 30 days thereafter (according to Article 341 para. 1 of the Swiss Code of Obligations). With this decision the Federal Supreme Court now clearly confirmed that an employee living in Switzerland requires specific protection which can only be provided by the national courts.
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