Paying out remaining holiday on exit
When an employee's contract ends, unused holiday entitlement must be paid out in cash at the employee's daily rate. This applies to notice-period departures, dismissals, and redundancies. Most cantons require full payout; some GAV collective agreements allow limited carryover into the following year, but this is the exception. The employer's obligation is straightforward: calculate remaining days, multiply by daily wage, and include the amount in the final salary payment.
Remaining holiday payout (Resturlaub-Auszahlung) is the legal obligation to pay an employee in cash for any unused vacation days when their employment ends.
This applies whether the employee resigns, is dismissed, or made redundant. Swiss employment law (ArG) treats unused holiday as earned compensation, not a discretionary benefit to lose on departure.
When this obligation applies
The payout duty triggers on the final day of employment, regardless of notice period length or reason for termination. Contract end, layoff, or resignation—all trigger the same requirement.
If an employee has accrued 25 days of holiday in a year and used 18 before leaving, you owe payment for 7 days. The calculation uses the daily wage rate the employee earned during their last period of work.
- Applies to all terminations: resignation, notice, dismissal, redundancy
- Calculated from start of employment year to final day worked
- Part-time employees receive payout pro-rata (e.g., 50% Pensum = 12.5 days at full rate)
- Must be paid with final salary or severance payment
- Carryover into next year is rare and only allowed if a GAV explicitly permits it
- No legal way to forfeit unused holiday by contract clause alone
Your obligation as employer
Calculate the total days owed, convert to the employee's daily gross wage (monthly salary ÷ 4.33), and include this in the final payment. Keep clear documentation of days taken throughout the year.
Swiss law does not require a specific notice period for holiday use before exit. An employee cannot be forced to take all remaining days before leaving; payout is the standard remedy.
- Maintain a written holiday log throughout employment (days booked, days taken)
- Calculate daily rate consistently: use gross salary ÷ 4.33 or as defined in employment contract
- Include payout amount on final payslip with clear line item
- Consider tax withholding: payout may trigger Quellensteuer in some cantons
- Confirm any GAV or sector agreement does not contain carryover exceptions
- Provide written confirmation of holiday balance before final payment
Most common mistake
Assuming unused holiday 'expires' at year-end or on departure. Many employers wrongly believe they can simply not pay it out. This creates a wage dispute claim and potential Arbeitszeugnis complications.
A second mistake: calculating daily rate incorrectly by dividing annual salary by 365 instead of 4.33 weeks. Use 4.33 to match the standard Swiss employment calendar.
- Not paying out any remaining days—this is a direct wage violation
- Using wrong divisor (365 instead of 4.33) to calculate daily rate
- Forgetting to withhold tax if local law requires it
- Failing to document which days were taken during employment
- Assuming a GAV carryover clause applies without checking the specific agreement
- Delaying payout beyond the final salary payment date
Frequently asked questions
- Can I force an employee to take remaining holiday before they leave?
- No. Swiss employment law does not require employees to exhaust holiday before departure. Payout in cash is the legal remedy. Some employers offer this as a courtesy, but you cannot mandate it or reduce the final payout based on refusal.
- What if my GAV says holiday carries over to the next year?
- Some collective agreements (especially in banking and insurance) permit limited carryover—often a maximum of 5 days into the following year. However, this does not apply to departing employees; they must still be paid out in full. Check your specific GAV text to be certain.
- How do I calculate the daily rate for a part-time employee at 60% Pensum?
- Multiply their part-time gross monthly salary by 12, divide by 52.14 weeks, then divide by 5 days per week. Or use the simplified method: (monthly salary ÷ 4.33) × (60 ÷ 100). Both yield the daily rate for payout purposes.
General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.