Notice periods, abusive termination, summary dismissal: the key rules under Art. 335 et seq. CO — compact and with practical examples.
Switzerland operates under freedom of termination — employment relationships can be terminated by either party without giving reasons, provided notice periods and protection periods are observed. This makes Swiss labour law more liberal for employers than that of many EU states, but provides employees with protection through compensation claims, not through rights to continued employment.
Ordinary notice periods
Under Art. 335c CO: 1 month in the 1st year of service, 2 months in years 2-9, 3 months from the 10th year — in each case to the end of a month. Longer periods can be agreed in the individual employment contract or CBA; a shortening below the statutory values is only possible by mutual agreement and is mandatory only in the first three months (probation).
Probation period
During probation a notice period of 7 days applies (Art. 335b CO), unless the contract provides otherwise. The probation period is statutorily one month and can be contractually extended to a maximum of three months. It can be extended if work is interrupted due to illness, accident or statutory duty.
Protection periods (Art. 336c CO)
The employer may not terminate during illness, accident (30 days in the 1st year of service, 90 days in years 2-5, 180 days from year 6), military service (plus pre- and post-period), maternity leave (16 weeks), adoption leave or charitable aid abroad. A termination issued during a protection period is void.
If the termination was issued BEFORE the start of the protection period, the notice period does not continue running during the protection period — it is interrupted and continues after the protection period ends. This is often overlooked in practice.
Abusive termination (Art. 336 CO)
Art. 336 CO lists typical examples: termination because of a personal attribute (gender, age, race, origin, religion, sexual orientation), because of exercising a constitutional right, as retaliation for legitimate claims from the employment relationship, or to prevent claims arising from the employment relationship.
Consequence: The termination is valid, but the employer owes compensation of up to six monthly salaries (Art. 336a CO). The affected employee must contest the abusiveness in time (at the latest by the end of the notice period) — a mere assertion without formal contestation lapses.
Summary dismissal (Art. 337 CO)
Only for an important reason — a serious breach of duty that makes the continuation of the employment relationship in good faith no longer reasonable for the terminating party. Examples from Federal Supreme Court practice: theft, persistent refusal to work, serious insult of superiors, competing activity, concealment of essential facts at hiring.
The threshold is high. A summary dismissal must moreover be issued immediately (usually within 2-3 working days of knowledge of the reason) — otherwise it is no longer summary, but must be treated as ordinary termination. An unjustified summary dismissal costs the employer salary until the ordinary termination date plus compensation.
Practice note for international situations
For employees with a B/C/S permit, the permit consequences of termination should be reviewed together with the HR department. A termination can jeopardise permit renewal, and that often has more serious consequences than the termination itself — up to loss of Swiss residence.