The rules on severance pay in detail

Swiss private employment law does not provide for statutory severance pay, except for employees of at least 50 years of age with at least twenty years’ service. Such employees are entitled to severance of between two and eight months’ salary; however, as pension benefits financed by the employer are deducted from the amount due, this exception hardly ever applies in practice.

An obligation to pay severance may nevertheless arise from a contractual provision contained in an individual employment contract, in a collective bargaining agreement, or in a social plan (negotiated either voluntarily or in application of the rules on large-scale redundancy). And of course, employers may offer voluntary or negotiated severance, for example as part of a termination agreement.

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Author: Schneider Troillet

Date: December 2019