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Switzerland Fact-File Part 6:
Individual Business Employment Issues

6.4 Switzerland Employee Dismissal Rules

The Termination and Dismissal of Employees

Notice periods should be detailed in the General Labour Agreement; when this is not the case, the notice periods (as set out in the Code of Obligations) are seven days during the employee's probationary period, one month during the first year of employment, two months in the second to ninth year of employment, and three months thereafter.

If an employee is dismissed, the employer must give written grounds for the decision.

In certain circumstances, either party may terminate an employment contract without notice, usually where the relationship between employer and employee has broken down. However, such occurrences are unusual and care must be taken, as a claim for unfair dismissal may be made by the employee to a Swiss court, which could result in a financial penalty for the employer.

Grounds for unfair dismissal claims can include dismissal due to:

  • Personality traits (except where such traits significantly impair the working relationship between employer and employee;
  • The exercising of a constitutional right by the employee, or the fulfilling of a constitutionally-required duty, such as military service and other legal duties;
  • An attempt by the employer to prevent the employee from benefiting from claims made as part of the employment relationship;
  • Union participation (or not) on the part of the employee.

 

Where an employer seeks to give notice to an employee during their performance of the aforementioned constitutionally-required legal duties, during a pregnancy (and for 16 weeks after the birth), or during a period (of increasing duration, according to years of service), that the employee is prevented from working due to accident or illness, this is deemed under Swiss law to be 'improper' , and the notice of termination will have no legal effect.



 

Introductory Guides

Brief, clearly written summaries with links to relevant sections of the Fact-File. The Fact-File itself is linked in full below.

 

Fact-File

Part 1: Switzerland Business Formation for Individuals

  1. Switzerland Individual Business Structures
  2. Switzerland Individual Business Registration
  3. Switzerland Individual Business Registration Cost
  4. Switzerland Individual Business Licensing
  5. Switzerland Foreigners in Business
  6. Switzerland Business Organisations
  7. Switzerland Business Accounting
  8. Switzerland Family Business Ownership
  9. Switzerland Venture Capital
  10. Switzerland Individual Business Franchises

Part 2: Switzerland Individual Business Domestic Taxation

  1. Switzerland Individual Business Tax Residence Rules
  2. Switzerland Permanent Establishment
  3. Switzerland Individual Income Tax Rates and Bands
  4. Switzerland Personal Allowances and Business Deductions
  5. Switzerland Husband and Wife Partnerships
  6. Switzerland Partnership Income Taxation
  7. Switzerland Limited Companies Income Taxation
  8. Switzerland Business Profit Retention
  9. Switzerland Business Losses
  10. Switzerland Value Added Tax (VAT)
  11. Switzerland Individual Business Capital Gains Tax (CGT)
  12. Switzerland Individual Business Other Taxes
  13. Switzerland Individual Artists Royalties
  14. Switzerland Individual Business Tax-Efficient Profit Distribution

Part 3: Switzerland Individual Business International Taxation

  1. Switzerland Individual Business International Tax Liability
  2. Switzerland Individual Business Withholding Taxes
  3. Switzerland Double Tax Treaties

Part 4: Switzerland Individual Business Tax-Efficient Structures

  1. Switzerland Individual Business Tax-Efficient Structures
  2. Switzerland Individual Business Trusts and Foundations
  3. Switzerland Individual Business for Non-Residents
  4. Switzerland Individual Business use of Offshore
  5. Switzerland Controlled Foreign Corporation (CFC) Rules
  6. Switzerland Personal Estate and Inheritance Planning

Part 5: Switzerland Small Business Incentive Programs

  1. Switzerland Small Business Support Schemes
  2. Switzerland Training Incentive Schemes
  3. Switzerland R&D Tax Credits
  4. Switzerland Individual Business Tax Holidays

Part 6: Switzerland Individual Business Employment Issues

  1. Switzerland Individual Business Employer Responsibilities
  2. Switzerland Employment vs Self-Employment Tax Issues
  3. Switzerland Apprenticeship and Work Experience Schemes
  4. Switzerland Employee Dismissal Rules
  5. Switzerland Business Owner Employment and Invoicing Rules

Part 7: Switzerland Business Owner Welfare and Lifestyle

  1. Switzerland Business Social Security
  2. Switzerland Business Domestic Pensions
  3. Switzerland Offshore and International Pensions
  4. Switzerland Individual Business Healthcare
  5. Switzerland Individual Business Banking Services
  6. Switzerland Education
  7. Switzerland Individual or Business Leaving Switzerland
  8. Switzerland Domestic Real Estate
  9. Switzerland International Real Estate