Dismissal in Switzerland: notice periods and unfair dismissal
Freedom to terminate and its limits
Under Swiss law, an employment contract can in principle be terminated by either party without having to give a reason: this is the principle of freedom of termination. This freedom is not absolute, however. It is bounded by statutory notice periods (art. 335c CO), the prohibition of abusive dismissal (art. 336 CO), and protection periods during which the employer may not terminate the contract at all (art. 336c CO).
These rules protect the employee without making dismissal conditional on a justified reason, unlike in some other countries.
Statutory notice periods
Unless otherwise agreed in writing, the law sets minimum notice periods that increase with seniority (art. 335c para. 1 CO): one month during the first year of service, two months from the second to the ninth year, three months from the tenth year onward. Notice must in principle be given for the end of a month.
During the probationary period (a maximum of three months, art. 335b CO), the notice period is seven days unless otherwise agreed, and notice may be given for any day.
An individual employment contract, a standard employment contract, or a collective bargaining agreement may set different periods, but never less than one month after the probationary period (art. 335c para. 2 CO).
Abusive dismissal
Article 336 CO lists grounds that make a dismissal abusive: termination because of a personal characteristic unrelated to the employment relationship, because of the exercise of a constitutional right, solely to prevent claims arising from the contract, because of membership or non-membership of a workers' organisation, while the employee represents the workforce, or in retaliation for a good-faith complaint against the employer.
An abusive dismissal remains valid: the employment relationship still ends. The sanction is financial (art. 336a CO): the court may award compensation of up to six months' salary. To claim it, the party who received notice must object in writing before the notice period expires (art. 336b CO), then bring a claim within 180 days of the end of the employment relationship.
Protection periods against dismissal at an inopportune time
Article 336c CO prohibits the employer from terminating the contract during certain periods: during compulsory Swiss military or civil protection service (and the four weeks before and after, if it lasts more than eleven days), during total or partial incapacity for work due to illness or accident not attributable to the employee's own fault (30 days during the first year of service, 90 days from the second to the fifth year, 180 days from the sixth year onward), and during pregnancy and the sixteen weeks following childbirth.
Notice given before the start of one of these periods, if the notice period has not yet expired, is suspended and resumes running once the protection period ends (art. 336c para. 2 CO). This protection does not apply during the probationary period, in case of termination for cause, or to notice given by the employee.
Immediate termination for cause
Article 337 CO allows either party to terminate the contract at any time, without observing a notice period, for cause: circumstances that make continuing the employment relationship unreasonable under the rules of good faith. The law does not provide an exhaustive list; the court assesses each situation concretely, taking into account the seriousness of the breach and the employee's role.
Immediate termination given without cause remains valid, but it entitles the injured party to damages, calculated in particular on what they would have received had the contract ended through ordinary notice (art. 337c CO).
Frequently asked questions
Can my employer dismiss me without giving a reason?
In principle, yes. Swiss law does not make dismissal conditional on a justified reason. The employer must, however, observe the statutory notice periods, must not be within a protection period (art. 336c CO), and must not rely on one of the grounds listed as abusive under art. 336 CO.
What happens if my dismissal is abusive?
The employment relationship still ends when the notice period expires: an abusive dismissal is not cancelled. The employee may, however, claim compensation of up to six months' salary (art. 336a CO), provided they objected in writing before the notice period expired and brought a claim within 180 days of the end of the employment relationship.
Am I protected if I am on sick leave when I receive notice?
If the incapacity for work is total or partial and not due to your own fault, art. 336c CO suspends the effect of the notice for a period depending on your seniority (30, 90, or 180 days). The notice period only starts running again once the protection period ends. This protection does not apply during the probationary period.
Can the notice period be shortened by contract?
An individual employment contract, a standard employment contract, or a collective bargaining agreement may adjust the statutory periods, but never below one month after the probationary period (art. 335c para. 2 CO). During the probationary period itself, the statutory seven-day period may be changed by agreement.