Terminating an employment relationship: grounds and notice periods

Switzerland applies the principle of freedom of termination: either party can end an open-ended contract without having to state a reason. But freedom does not mean arbitrariness: notice periods, protection periods and limits on abuse govern the way a termination takes effect. Let’s look at the rules of the Swiss Code of Obligations (CO).

Fixed-term and open-ended contracts

A fixed-term contract ends automatically on expiry, with no need for notice.
An open-ended contract requires notice of termination to end, in compliance with the statutory or contractual periods.

If a fixed-term contract is tacitly continued after expiry, it becomes an open-ended relationship.

Ordinary notice periods

Unless otherwise agreed (in writing) or set by a collective bargaining agreement (CBA), the statutory periods are:

during the probationary period: 7 days;
in the first year of service: 1 month, effective at the end of a month;
from the second to the ninth year: 2 months, effective at the end of a month;
from the tenth year onwards: 3 months, effective at the end of a month.

The parties may change these periods in writing, but they cannot differ for the two parties and, as a rule, may not be shorter than one month after the probationary period (subject to exceptions provided by law in the first year through a CBA).

Protection periods (termination at an inopportune time)

The employer may not validly terminate the contract during certain protection periods, including:

during illness or accident through no fault of the employee, for a period that grows with seniority (roughly 30 days in the first year, 90 from the second to the fifth, 180 from the sixth);
during pregnancy and in the 16 weeks following childbirth;
during compulsory military, civil protection or civilian service (and in the weeks immediately before and after, under certain conditions).

A termination given during these periods is null and void. If, on the other hand, the protection period begins after a valid termination, the notice period is suspended and resumes once the impediment ends.

Wrongful termination

Even without any duty to give reasons, a termination may be wrongful if given, for example:

for a personal characteristic of the employee (age, origin, sexual orientation), unless it is connected to the employment relationship;
because the employee exercises a constitutional right or asserts in good faith claims arising from the contract;
to prevent the employee’s claims from arising (for instance pension benefits);
as retaliation for a legitimate complaint.

A wrongful termination remains valid (the relationship does end), but it entitles the employee to compensation of up to a maximum of six months’ salary, set by the court. Anyone who considers a termination wrongful must object in writing by the end of the notice period and bring legal action within the statutory deadlines.

Immediate dismissal (summary dismissal)

For serious grounds, either party may terminate with immediate effect, without observing the notice periods. This applies to a serious breach of trust (theft, gross insubordination, unfair competition). The threshold is high: only circumstances that make continuing the relationship unreasonable justify it.

If the immediate dismissal is justified, the relationship ends at once.
If it is unjustified, the employee is entitled to what they would have earned had the ordinary period been observed, plus possible compensation of up to six months’ salary.

Form and proof

Termination generally requires no written form, but it is strongly recommended (by registered letter) in order to prove the date and receipt. On request, the terminating party must state the reasons in writing. What counts is the moment the termination reaches the recipient.

How we help you

The People division of SIH ONE handles terminations, the calculation of notice and protection periods, reducing the risk of nullity and disputes. Let’s manage the end of the relationship together.