Understanding Notice Periods in Labour Law

Legal Framework

The entirety of Swiss labor law includes the Swiss Code of Obligations (CO), the Labor Law (ArG), the Regulations of the Labor Law, as well as the Participation Law, Social Insurance Law, Accident and Unemployment Insurance, Loss of Earnings Ordinance, Military Insurance, the Equality Act (GEA), and the Data Protection Act (FADP).

That's quite a lot of laws. But don't worry. We will guide you through the depths of the legal jungle in a simple and understandable way with the following text. We consciously focus only on the essentials regarding notice periods in Switzerland. Additionally, we explain exceptions and special cases you should be aware of.

General Guidelines

A termination becomes legally effective at the time of actual receipt. This does not refer to the posting of the letter, but to the moment when the recipient holds the letter in their hands and, if necessary, confirms receipt by their signature.

In Switzerland, unless otherwise specified in the employment contract, oral termination in the presence of witnesses is also possible. However, this approach is not recommended, as there may be no evidence available in case of doubt. If you still prefer this type of termination, it is advisable to obtain written confirmation of receipt of the termination. The same applies if you personally hand over the termination letter.

Furthermore, you can only terminate at the end of the month. For example, if the termination is issued for June 15th, the last day of work with a three-month notice period is not June 15th but September 30th.

The legislator does not differentiate between notice periods for full-time and part-time positions within the statutory notice periods.

Notice Periods according to Employment Relationship

Probation Period

The notice period within the probationary period is by far the shortest in legislation. This is because the probationary period is seen as a pure trial phase. During this period, employers and employees test whether they want to transition to a permanent employment relationship or not. The employment relationship can be terminated by both parties within this phase with a notice period of 7 days.

It is also important to know that no waiting period applies during a probationary period. This means that an employer can terminate an employee even during pregnancy or illness.

Unlimited Employment Contract

The notice periods for ordinary terminations are subject to the fixed periods set by the Swiss Code of Obligations. These are based on the years of service of the employee and are as follows:

• Probation period: 7 calendar days
• 1st year of service: 1 month
• 2nd-9th year of service: 2 months
• from 10th year of service: 3 months

As an employer, you may deviate from these deadlines if you specify other deadlines in the individual or collective employment contract. Of course, the employment contract must be signed by both parties. This officially confirms the new conditions and overrides the deadlines set by the Swiss Code of Obligations.

However, the notice period may not be less than one month after the first year of service. In practice, most employers opt for a longer notice period anyway. Four to six months are popular. Both parties are treated equally under the law, as Article 335a CO stipulates the same notice period for both employers and employees.

Fixed-term Employment Contract

A fixed-term employment contract has a fixed end date as its basis. The contract ends automatically on this date without the need for a separate termination letter. If there are no other agreements in the contract, termination before the end date is not possible. An exception is urgent reasons that make continued employment impossible. These must be detailed.

If an employee is silently employed after the end date of a fixed-term contract, they are considered to be employed indefinitely. Since there is no written employment contract, the notice period is governed by the Swiss Code of Obligations.

Notice Periods in Special Cases

Immediate/Termination for Cause

Even though no one wishes for it, there are circumstances under which the only way out is an immediate termination. In this case, the law requires the naming of these reasons. They must also be serious. Examples include criminal acts such as theft, insults, or other unreasonable behavior towards customers, colleagues, or superiors. With an immediate termination, the employment relationship ends without notice with immediate effect.

It is possible to contest immediate terminations. This is always individually examined by the court. Furthermore, damages payments are common.

Mass Layoffs

If an employer has to announce mass layoffs, employment relationships end 30 days after receipt of the notice, if the employment contract does not contain a termination agreement. Otherwise, the contractual agreement is the benchmark. Possible waiting periods must be observed. Mass layoffs are a sensitive issue, and legal assistance is recommended in any case.

Exceptions and Waiting Periods

Although there is no general employment protection law in Switzerland directly comparable to regulations in other European countries, employees are nevertheless temporarily protected against termination in certain situations by provisions within the Swiss Code of Obligations. We have summarized these cases below.

Pregnancy

During the entire pregnancy up to 16 weeks after childbirth, termination is invalid. This is also the case if the employee did not know about the pregnancy at the time of termination.

Illness or Accident

The length of termination protection depends on the length of the employment relationship. The legal basis for calculation is as follows:

• 1st year of service: 30 days
• 2nd-5th year of service: 90 days
• from 6th year of service: 180 days

Military Service, Civilian Service, Civil Protection, Foreign Missions

The employee enjoys unrestricted protection against termination when performing activities within these areas.

Other Facts about Terminations

Leave of Absence

With mutual consent, a leave of absence can also be agreed upon within a termination process. In this case, the employee is still officially employed and receives their salary but is already released from their duty to work before the actual end of the contract and does not have to appear at the workplace anymore.

Abusive Termination and Discrimination

An abusive termination occurs when a termination is issued for reasons that discriminate against the recipient in a certain way. These can include personal characteristics, religion, age, sexual orientation, or affiliation with a certain party, for example. Abusive terminations are generally valid but can be contested. High damages payments are often the result.

Professional Support for Terminations

Especially for employers, an experienced labor lawyer is highly recommended. This always applies generally, but at the latest when you decide on a termination. They not only have a flawless understanding of complex labor law but can also advise and represent you individually in difficult cases. GetYourLawyer offers you the opportunity to find a specialist who suits you and your company - easily online and without hours of searching. Submit your request and see for yourself.