Misconception 1: You need a good reason to be dismissed
“Is that a reason for termination?” callers to the advice hotline often ask when they have had a mishap at work or conflicts with superiors arise. The answer: it can be, but it doesn’t have to be. Because in Swiss employment contract law, the principle of freedom of termination prevails. An employment relationship can be terminated by either party at any time – with a few exceptions. Neither a valid reason nor a warning is required. This means that redundancies out of the blue are also permissible. According to the Federal Supreme Court, it is “hardly decent” to be dismissed without a prior discussion, but it is not unlawful. State employees are generally better protected.
Misconception 2: A cancellation must always be made by registered letter
The law does not prescribe a specific form for terminating an employment contract. It is crucial that the person giving notice clearly expresses his will and that it is clear when the employment relationship is to be terminated. This can also be done verbally, by e-mail or SMS, unless a specific form has been contractually agreed. For reasons of proof, however, it is always advisable to give notice of termination in writing and to have the other party confirm receipt of the notice of termination.
Error 3: In the case of written termination, the postmark is decisive
A termination takes effect as soon as the recipient takes note of it – the postmark is irrelevant. In order for the notice period to start on the first of the month, the notice of termination must reach the person who has been terminated no later than on the last day of the previous month. If it comes later, it is valid, but the employment relationship is extended by one month. And if, for example, a registered letter cannot be delivered, it is deemed to have arrived at the recipient if it is picked up at the post office or could have been picked up.
Misconception 4: It is always better to resign than to be resigned
Being fired is considered a disgrace by many. They would rather go there themselves and have their job reference certify that they left the job “at their own request”. Maybe that’s good for the ego. But let’s not fool ourselves: when someone resigns and is then unemployed, that raises questions. There are also legal disadvantages to resigning yourself. For example, there is no protection against dismissal in the event of incapacity to work (see error 7), and it is no longer possible to contest the termination of the contract as abusive. You also risk problems with unemployment insurance (see error 5). The rule of thumb is therefore: only quit when you have a new job. Otherwise the employer should do it. By the way: It does not necessarily have to be stated in the job reference who gave notice.
Misconception 5: If I give notice myself, I can’t go stamping
Entitlement to daily unemployment benefit depends on various factors. For example, unemployed people must have paid ALV contributions for at least twelve months as employees in the last two years, they must be able to be placed and actively seek new work. If these requirements are met, you can also draw unemployment benefits if you have given notice of your own accord. But: Anyone who is unemployed through their own fault – for example because he or she gave up a reasonable job without need – can be fined with sensitive daily allowance reductions. In the case of serious fault, a maximum of 60 such days of suspension are possible.
Misconception 6: Long-standing employees who are fired through no fault of their own are entitled to severance pay
Unfortunately, this is not the case. There is a provision in the Code of Obligations according to which over 50-year-olds who leave a company after more than 20 years of service are entitled to a severance payment of two to eight months’ wages. However, the employer can deduct the contributions that he has paid into the pension fund for the employee. As a rule, the pension fund contributions are higher than the possible severance payment. Only low-income earners who are not subject to the mandatory pension fund can therefore benefit (annual salary currently less than CHF 21,330). At most, a collective employment contract or a social plan prescribes a severance payment. In all other cases, one can only hope for the goodwill of the employer.
Misconception 7: As long as an employee is ill, you cannot fire him
In fact, there is protection against dismissal in the event of total or partial incapacity to work. However, it is limited in time and depends on years of service. In the first year of service, notice of termination may not be given for 30 days from the start of the incapacity to work. The protection period is 90 days from the second to fifth year of service and 180 days from the sixth year of service. If the blocking period has expired or if the employee is able to work 100 percent again before then, the employer may terminate the contract. Employees themselves can resign at any time, even during illness.
Misconception 8: The job reference is only available on the last day of the employment relationship
According to the law, you can ask for a certificate at any time – i.e. immediately after receiving notice of termination or even during the employment relationship, for example if a change of boss is imminent. The law does not state how quickly the employer must issue the certificate. A waiting time of about two weeks is considered reasonable.
Misconception 9: When you reach retirement age, your employment ends automatically
This is only the case if it has been contractually agreed. Otherwise, if you want to retire, you also need to give notice when you reach AHV age. In many cases, an agreement will be reached with the employer to terminate the contract. Otherwise the employment relationship continues. In any case, it is not prohibited to continue working beyond retirement age.
Misconception 10: “Exempt” means “dismissed without notice”
Employees with a lot of customer contact or in managerial positions are often released immediately after termination. You are relieved of all obligations, but will receive your full salary with all allowances until the end of the notice period. However, a leave of absence is not instantaneous dismissal, as many believe if they have to vacate their workplace suddenly. A “time limit” is only permissible in exceptional cases – namely if the employee has committed a serious breach of trust towards the employer (fraud, theft, competition from the employer, etc.). Such a dismissal ends the employment relationship immediately, further wage payments are not owed. In the case of a leave of absence, however, the employment relationship generally continues until the end of the ordinary notice period. The release does not bring any disadvantages to employees either, on the contrary: the person who has been made redundant can concentrate on looking for a job or take the rest of the vacation time.
Protection against dismissal in the event of incapacity to work
As long as you are totally or partially unable to work, the employer may not give notice during the following blocking periods:
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30 days in the 1st year of service;
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90 days from 2nd to 5th year of service;
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180 days from the beginning of the 6th year of service.
If a notice of termination is given anyway, it is invalid. If the inability to work only occurs during the period of notice, this is suspended during the inability to work, at the longest until the end of the blocking period. The employment relationship is then extended accordingly and only ends at the end of the following month.
There are no blocking periods in the event of termination by the employee.
As long as you are totally or partially unable to work, the employer may not give notice during the following blocking periods:
-
30 days in the 1st year of service;
-
90 days from 2nd to 5th year of service;
-
180 days from the beginning of the 6th year of service.
If a notice of termination is given anyway, it is invalid. If the inability to work only occurs during the period of notice, this is suspended during the inability to work, at the longest until the end of the blocking period. The employment relationship is then extended accordingly and only ends at the end of the following month.
There are no blocking periods in the event of termination by the employee.