Final Payroll Settlement (Schlussabrechnung)
A Schlussabrechnung is the final paycheck an employer issues when employment ends. It must include all earned but unpaid salary, overtime compensation, accrued holiday balance converted to pay, and any deductions owed. Swiss law requires it be issued promptly, typically within 10 business days of termination. The employer must also provide an Arbeitszeugnis (employment certificate) at the same time.
When an employee leaves your company—whether by resignation, termination, or mutual agreement—you must settle all outstanding pay within a defined period. This final payment is called the Schlussabrechnung.
The Schlussabrechnung is governed by the Swiss Code of Obligations (OR), cantonal employment laws, and any applicable collective labour agreement (GAV). Mistakes here can trigger wage disputes and damage your reputation as an employer.
What Must Be Included in a Schlussabrechnung
Your final settlement must account for every franc owed. This includes gross salary for days worked up to the departure date, any unpaid overtime or extra hours, and the monetary equivalent of unused holiday days.
Deductions are also itemised here: income tax (Quellensteuer), AHV/IV/EL social insurance contributions, and any outstanding loans or equipment costs agreed in the employment contract. The net result is what the employee takes home.
- Gross salary for worked days (including notice period if applicable)
- Overtime and supplementary hours at contractual rates
- Unused holidays paid out at gross daily wage
- Bonuses, commissions, and other variable pay if earned
- Deductions for tax, insurance, and agreed advances
- Interest on late payment where canton law allows it
When and How the Employer Must Act
Swiss law does not set a single nationwide deadline, but most cantons expect settlement within 10 business days of employment end. Some cantons (e.g. Zurich, Lucerne) are stricter. Check your canton's labour inspectorate for the exact rule.
Payment must go to the employee's declared bank account or in cash. Simultaneously, you must issue an Arbeitszeugnis (certificate of employment) and—if required—notify the RAV/ORP/URC (regional employment office) for unemployment insurance.
- Issue Schlussabrechnung within 10 business days (check your canton)
- Provide itemised breakdown of all salary, overtime, and deductions
- Pay by bank transfer to the account on file or in cash
- Attach a copy for your payroll records
- Include the Arbeitszeugnis with the settlement
- Confirm RAV/ORP/URC notification if dismissal applies
The Most Common Mistake
Employers often forget to pay out accrued but unused holiday days. Under Swiss law, an employee cannot lose holiday entitlement simply by leaving; it must be converted to pay at the gross daily rate.
A second frequent error is issuing the final pay without an itemised breakdown. Employees have the right to understand exactly what they received and why. Vague or missing detail invites wage claims and disputes with the employment office.
- Failing to account for all unused holiday days from the year
- Issuing payment without an itemised Schlussabrechnung document
- Delaying payment beyond the cantonal deadline
- Not confirming the employee's final address for posting or email
- Mixing up gross and net figures, or omitting deductions
- Forgetting to notify the unemployment insurance office on time
Frequently asked questions
- Can I deduct outstanding costs (e.g. broken equipment) from the final pay?
- Only if the employment contract explicitly allows it and the deduction is reasonable. Wage deductions are strictly regulated under Swiss law (OR Article 323); arbitrary deductions are forbidden. Consult a lawyer to confirm your contract's language is enforceable, and document the incident thoroughly.
- What if the employee is still on holiday when the contract ends?
- If they have unused days remaining, you pay them out in the Schlussabrechnung at the gross daily wage. If they take holiday during the notice period and then leave, the days taken count against their entitlement. The calculation can be complex; payroll software or your accountant can help.
- Do I have to pay interest if I delay the Schlussabrechnung?
- Most Swiss cantons allow 5% annual interest on late wage payment under OR Article 327, though a few cantons have different rules. A ten-day delay rarely triggers interest, but stretching beyond that invites claims. Check your canton's labour inspectorate to confirm the exact rule and threshold.
General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.