Notice and resignation: the legal periods

Ending an employment relationship in Switzerland is simpler than in many neighbouring countries, but it is not without rules. The Code of Obligations sets precise notice periods, moments in which termination is not permitted, and protections against wrongful dismissal. Knowing them avoids mistakes that can turn an orderly separation into a costly dispute.

The open-ended contract and termination

Most employment relationships are open-ended. Both parties — employer and employee — may end the contract by giving notice, observing the notice period. The Swiss rule is that of freedom of termination: in principle no reason need be given, but on request the terminating party must state its decision in writing.

The legal notice periods

Absent any different agreement, the Code of Obligations provides for periods linked to years of service:

• during the probation period: 7 days’ notice;
• 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 periods apply identically to both parties: the contract cannot provide the employee with a longer notice period than the employer’s. A written contract or a CLA (collective labour agreement) may modify these periods within the limits of the law, but may not reduce the notice below one month after the probation period (save for exceptions provided by law, for example in the first year by written agreement).

The probation period

Unless otherwise agreed, the first month of work is deemed to be the probation period; the parties may extend it by contract up to a maximum of three months. During probation the relationship may be dissolved with just 7 days’ notice, for any working day. It is the phase in which separation is simplest, which is why it should be used with awareness by both parties.

How the period is counted

A point often misunderstood: the notice period runs from when the termination reaches the other party, not from when it is sent. If notice is “effective at the end of a month”, the count runs so as to expire on the last day of the applicable month. A termination received on the 2nd of the month, with two months’ notice effective at month-end, takes effect at the end of the second full month that follows, not the first. Getting the calculation wrong means unintentionally lengthening or shortening the relationship.

The form of termination

The law does not generally require written form, but written form is strongly recommended and often required by the contract or the CLA. A written termination, with a certain date of receipt (for example registered mail), avoids disputes over when it occurred and over compliance with the periods. The reasons must be provided in writing if the other party requests them.

When termination is not permitted: the protected periods

The employer may not terminate the contract during certain protection periods (after the probation period), including:

• illness or accident through no fault of the employee, for a duration increasing with years of service;
• pregnancy and the sixteen weeks following childbirth;
• compulsory military or civil protection service, within the windows provided by law.

A termination given during these periods is null and void; if the protected period arises after a termination that was already valid, the period is suspended and resumes at the end of the protection. This protection applies to termination by the employer, not by the employee.

Wrongful and immediate dismissal

Even when the periods are observed, a termination may be wrongful if given for reasons prohibited by law (for example on account of personal characteristics, the exercise of a right, or as retaliation). It does not annul the dismissal, but it may give rise to compensation of up to six months’ salary.

Different is immediate dismissal (summary dismissal): permitted only for serious cause that makes continuation of the relationship unreasonable. It must be used with the utmost caution: if the court does not recognise the seriousness, the employer must compensate the employee.

Release from the obligation to work

During the notice period the employer may release the employee from the obligation to perform work, while continuing to pay their salary until the period expires. It is common practice, but it reduces neither the financial obligations nor the periods: the relationship remains in force until the end of the notice.

Mistakes to avoid

• Getting the calculation wrong on the period and the expiry date.
• Terminating during a protected period, rendering the termination null and void.
• Using summary dismissal without a truly serious cause.
• Not keeping written proof of the termination and of its receipt.

How we work at SIH ONE

We help companies manage staff departures correctly: calculating notice periods, checking protected periods, drafting termination letters and coordinating with the final payroll and social insurance.

Do you need to manage a separation, or want clear procedures for your team? Discover our payroll services and handle terminations without risk.