Employee termination
in Switzerland.

SALARY PAYMENT IN Swiss Franc (CHF)

CONTRACT LANGUAGES German / French / English

PAYROLL TAX 8.17% – 23.50%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

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Valid reasons to terminate employment in Switzerland

In Switzerland, employers or employees do not need to give a reason to terminate employment given that the statutory notice periods are abided by and termination is conducted in an abusive or unfair way.

Unfair reasons to terminate employment in Switzerland

There are certain circumstances that Swiss labor law that forbids an employer from terminating employment. These reasons include:

Compulsory military or civil defence service, as well as four weeks before and after the service period.
A period of full or part-time inability to work due to non-faulty illness or accident, for up to 30 days during the first year of service, 90 days from the second to the fifth year of service, and for 180 days from the sixth year of service.
Pregnancy and the 16 weeks following childbirth.
The employee’s foreign-aid service is mandated by the federal authority with the employer’s consent.

Employees may also be able to open an unfair dismissal case if the statutory notice periods are not abided by or they are terminated based on discriminatory reasons.

Dismissal procedure in Switzerland

Employers in Switzerland can dismiss employees fairly easily as long as all termination laws are met. Statutory notice periods must be abided by when dismissing an employee and notice must be given to an employee in writing. Employers also must make payments of:

Accrued untaken leave
Bonus (if applicable according to EA)
Severance pay if applicable

Employers do not need to justify the termination unless an extraordinary circumstance that requires immediate termination is required.

Resignation procedure in Switzerland

Employees should give their resignation notice in writing to their employer with the required notice period as outlined in their employment contract. An employee does not need to give a reason to resign from their employment.

Hiring in Switzerland, Made Easy

Your business can easily hire employees in Switzerland without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

Is it difficult to terminate employment in Switzerland?

Switzerland has some of the most lenient rules for terminating employment contracts in Europe. Employers and employees do not need to give any reasons for the termination if statutory notice period obligations are met.

What are the risks of terminating employment in Switzerland, and how do I mitigate them?

Although it is easy to terminate an employment contract in Switzerland, there are still rules around justified and unjustified dismissal. It is important to understand these laws or consult with an expert in the event you need to terminate an employee.

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