Termination Agreement (Aufhebungsvertrag)
An Aufhebungsvertrag is a written agreement signed by both employer and employee to end an employment relationship with immediate effect or on a set date, replacing ordinary notice periods. It requires genuine mutual consent and must cover severance, final pay, benefits, and the Arbeitszeugnis (work reference).
An Aufhebungsvertrag (termination agreement) is a written contract signed by both employer and employee to dissolve an employment relationship by mutual consent, bypassing standard notice periods and termination grounds.
Unlike dismissal, which is a unilateral employer action, an Aufhebungsvertrag requires both parties to agree in writing. It can end employment immediately or on a future date you both choose.
When It Comes Up
You typically use an Aufhebungsvertrag when an employee wants to leave before their notice period would allow, or when you both agree that immediate separation is better than a formal dismissal or notice period. Restructuring, role elimination, and mutual underperformance fit here.
An Aufhebungsvertrag also protects both sides: the employee avoids a dismissal on their record; you avoid the cost and time of a notice period or redundancy procedure. Swiss law (OR Article 337) permits such agreements provided they are genuinely voluntary.
- Employee resignation with company agreement to shortened exit
- Redundancy or role elimination by mutual consent
- Settlement of workplace disputes without formal dismissal
- Retaining a key person with a departure date further in future
- Avoiding a contested termination or legal challenge
- Clarifying severance and reference before parting ways
Your Obligations
Both parties must sign the agreement in writing. The agreement must specify the end date, any severance (often tied to length of service or company practice), notice of whether unemployment insurance (assurance-chômage) applies, and confirmation of the Arbeitszeugnis the employee will receive.
You must be clear about what happens to accrued vacation, overtime, and the 13. Monatslohn if applicable under the GAV or your contract. If the employee claims the agreement was forced, a court may void it, so document that consent was genuine and given time to consider.
- Written document signed by both parties with clear end date
- Specify severance amount and payment terms (timing, currency CHF)
- Confirm whether the employee remains eligible for RAV/ORP/URC registration
- Detail final pay, unused vacation, and Pensum adjustments
- State what type of Arbeitszeugnis will be issued (simple or detailed)
- Avoid language that could suggest coercion or pressure
Most Common Mistake
Offering an Aufhebungsvertrag verbally, without a signed document. Swiss law requires written form; anything else leaves both of you exposed. An unsigned or email-only agreement is not legally binding.
The second frequent error is failing to address the Arbeitszeugnis in the agreement. Disputes over reference quality often arise weeks later. Agree in writing—even briefly—whether you will issue a simple statement of dates or a detailed assessment, and let the employee review it before final separation.
- Assuming an email or conversation counts as a valid agreement
- Omitting the Arbeitszeugnis terms or the type and tone of the reference
- Not specifying severance clearly or leaving payment timing vague
- Failing to document that the employee had time to seek advice
- Overlooking accrued benefits (vacation, overtime, bonuses)
- Not consulting with a lawyer in disputed or high-value cases
Frequently asked questions
- Can I force an Aufhebungsvertrag on an employee?
- No. The agreement must reflect genuine mutual consent. If an employee later claims you coerced them, a court may void it. Always give the employee time to consider and, if they wish, to consult an advisor. Document the process.
- What if the employee changes their mind after signing?
- Once both parties have signed, the agreement is normally binding. However, if signed under duress or without adequate opportunity to understand it, a court may overturn it. Avoid pressure tactics. If concerns arise immediately, consider discussing with a lawyer before the end date.
- Do I have to pay severance in an Aufhebungsvertrag?
- Swiss law does not mandate severance. However, market practice in your canton and industry often expects it. If you offer none, the employee may refuse to sign or later claim unfairness. A modest amount—depending on tenure and role—is common and reduces friction.
General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.