EMPLOYMENT LAW
TERMINATION
It is crucial to make sure the termination of an employment contract doesn’t breach any legal regulations. The process can go through very smoothly, but strict rules must be respected to avoid costly disputes.
Key Legal Principles
Form of Termination
Under Swiss law, both employers and employees may terminate an employment contract. Except for fixed-term contracts, termination does not require a specific reason, unless the employee asks for one, in which case a written explanation of the reasons for the termination is mandatory.
Notice periods
Unless otherwise agreed upon in writing, statutory notice periods apply (Art. 335c CO):
- During the probation period: 7 days
- During the 1st year of service: 1 month
- From the 2nd to the 9th year of service: 2 months
- From the 10th year of service: 3 months
- The notice period must expire at the end of a calendar month, unless the contract specifies otherwise.
Avoid abusive dismissal
It is essential to ensure that a dismissal cannot be considered abusive (Art. 336 CO). A dismissal may be deemed abusive, for example, if it is based on discriminatory grounds, given in retaliation for claims raised by the employee, or otherwise in violation of the principle of good faith. In such cases, the employment relationship still ends, but the employer may be required to pay the employee compensation of up to six months’ salary.
Immediate termination for just cause
Employers may terminate without notice for “just cause” (Art. 337 CO), i.e. where continuation of the employment relationship is objectively unreasonable. This is a high threshold and should be applied cautiously.
Protection periods
Termination is invalid if given during certain protected periods (Art. 336c CO), such as:
- While the employee is serving compulsory Swiss military, civil protection, or civil service;
- While the employee is prevented from working due to illness or accident ill or accident (up to 30, 90, or 180 days, depending on seniority);
- During pregnancy and the 16 weeks following childbirth;
- While the employee participates in approved foreign aid service.
If notice is given before a protected period begins, the notice period is suspended and only continues once the protected period has ended.
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