Dismissal of Swiss Employees

Labor legislation in Switzerland

Unlike other European countries where termination of employment is subject to strict regulations, the Swiss Employment Law is rather relaxed when it comes to the dismissal of employees. At the moment the main legal frameworks regulating termination of employment in Switzerland are:

• – the Swiss Code of Obligations (Art. 319 ff.),
• – the Statute on the Information and Consultation of Employees,
• – the Federal Labor Statute,
•  – the Federal Act on Equal Treatment of Women and Men.

Each statute contains specific provisions about the treatment of workers by Swiss employers. Termination of employment in Switzerland may be ordinary or extraordinary.

Ordinary dismissal of Swiss employees

Swiss employment contracts may be terminated by mutual consent, upon the expiration of a fixed term contract or by dismissal. The most employed type of dismissal in Switzerland is the ordinary termination of work relations. As a general rule, a permanent employment contract may be terminated by a Swiss company provided that a notice period has been given to the employee. Statutory notice periods in Switzerland vary from one to three months, depending on the time spent by the worker in the company. When the notice of termination is given by the Swiss company, the reasons must be given in writing only if the employee so requests.

Extraordinary dismissal of employees in Switzerland

Extraordinary dismissal will occur without any previous notice and disregarding the type of employment contract concluded with the Swiss company. The Employment Law establishes that extraordinary dismissal may happen for good cause, for example if the employee has committed a serious criminal act against the employer. In this case, the employment relations must be terminated within a short amount of time, usually two or three days.

Collective dismissals in Switzerland

The Swiss legislation contains specific provisions about collective dismissals. Swiss companies are required to observe a 30-day period: employment ends no earlier than 30 days after the cantonal employment office is notified. The collective dismissal rules do not apply in case of bankruptcy or a composition with assignment of assets; otherwise the employer must first consult with the workers and notify the Cantonal Labor Office. The Swiss company must also notify in writing the employees about:

• – the reasons for collective termination,
• – the number of workers being dismissed,
• – the number of individual employed,
• – the time frame the notification will be given.

For additional information about the reasons for dismissal, please contact out lawyers in Switzerland.