Termination Letter Template for Swiss Employers
A termination letter (Kündigungsschreiben) formally ends an employment relationship in Switzerland. It must state the effective date, respect statutory notice periods (usually 10 days for probation, 1 month end of month thereafter), and clarify final salary, holiday payout, and reference letter rights. Always send registered mail and keep a copy.
Termination in Switzerland is governed by the Swiss Code of Obligations (OR/CO). A written notice is legally required and must be delivered in person, by post, or electronically with proof of receipt. The letter should be clear, factual, and free of accusation—even in dismissal for cause.
Notice periods depend on contract terms and reason for termination. Probation periods (usually 14 days) allow termination with 3 days' notice. Standard employment requires 1 month notice ending on the last day of a calendar month. Termination without cause (ordentliche Kündigung) and for cause (fristlose Kündigung) have different rules; consult a labour lawyer if dismissing for misconduct or poor performance.
Template: Standard Termination Letter
[Your company letterhead] [Date] [Employee name] [Employee address] Termination of Employment Agreement Dear [Employee name], We hereby terminate your employment contract, effective [date: last day of a calendar month, or as permitted by notice period]. Your final working day is [date]. We will settle your outstanding salary, accrued holiday, and any other statutory entitlements by [date, typically within 10 days of termination]. A detailed statement will be provided with your final payment. You are entitled to a work reference (Arbeitszeugnis) on request. This will be issued within 10 days of your final day. Please return all company property—keys, devices, documents, access cards—by your final day. We wish you well in your future endeavours. Yours sincerely, [Signature] [Your name and title]
This template uses neutral, non-accusatory language suitable for termination without cause. For termination during probation, adjust the effective date to reflect the shorter notice period (e.g., 3 days from date of letter). For termination for cause, add a brief statement of reason but avoid emotional language; seek legal review before sending.
- Send by registered post (Einschreiben) or hand-deliver with a witness; keep proof of delivery.
- Effective date must respect notice periods: probation 3 days, standard 1 month end of month, unless contract states otherwise.
- Include the statement about work reference (Arbeitszeugnis) to confirm the employee's legal right.
- List all property to be returned (laptop, phone, keys, documentation, badge) to avoid disputes.
- Do not reference previous verbal warnings or informal feedback; keep the letter formal and factual.
- Retain a copy for your records; data retention rules vary by canton but typically 5–10 years for employment files.
Final Pay, Benefits, and Legal Obligations
Swiss law requires settlement of all outstanding entitlements within 10 days of termination. This includes base salary to the final day, unused holiday (Ferien), overtime compensation (if applicable), and any 13th month salary (13. Monatslohn) if guaranteed by contract or cantonal custom.
If the employee is enrolled in occupational benefits (Pensionskasse), the employer must notify the fund and the employee. Sick leave and any non-statutory benefits (company car, phone allowance) should be clearly addressed in writing. Source tax (Quellensteuer) liability ends on the last working day.
- Calculate unused holiday as of termination date; pay out in full unless contract or GAV permits carryover (rare in Switzerland).
- If a 13th month salary applies (contract or collective agreement), include it in the final settlement or clarify pro-rata adjustment.
- Confirm the employee's registration with the local employment office (RAV/ORP/URC) if they are unemployed; they may need to register within days of termination.
- Provide a statement (Lohnabrechnung) with the final payment showing all deductions, including AHV/IV/UVG and source tax.
- Clarify any outstanding loans, advances, or non-compete clauses; deductions require explicit written consent unless the contract authorizes them.
- For termination for cause, ensure statutory grounds exist (gross breach of duty, theft, repeated insubordination after warning); a lawyer should review dismissal letters.
Reference Letter, Data Deletion, and Follow-Up
Every employee has the legal right to a work reference (Arbeitszeugnis) in Switzerland. The reference must be issued within 10 days of request and should be factual, honest, and concise. A simple or detailed reference may be requested; the detailed version typically covers performance, conduct, and reason for departure.
After termination, the employer must delete or anonymize personal data according to Swiss data protection law (FADP/LPD). Employment records (contracts, pay slips, evaluations) should be retained for 5–10 years for tax and labour law compliance; consult your accountant or cantonal labour authority for exact timelines.
- Prepare the work reference promptly; delays in issuing it can create liability. Use neutral, professional language.
- The employee can request a 'simple reference' (einfaches Zeugnis—dates and role only) or 'detailed reference' (qualifiziertes Zeugnis—includes performance and conduct).
- Do not share the reference with third parties without consent; the employee must receive the original or certified copy first.
- After the retention period ends, delete or securely destroy personnel files, medical records, and performance evaluations.
- If the employee disputes the reference content, attempt mediation; a labour court can order corrections if the reference is factually false.
- Document the termination meeting and any handover conversations; this protects both parties if disputes arise later.
Frequently asked questions
- What is the legal notice period for termination in Switzerland?
- Standard notice is 1 month, ending on the last day of a calendar month. During probation (usually 14 days), notice is 3 days any time. Collective agreements (GAV) may specify longer periods. Always check the employment contract and applicable canton rules; a labour lawyer can confirm if you are uncertain.
- Can I terminate an employee by email or only by registered post?
- Email is legally valid if delivery is confirmed (read receipt, response). Registered post (Einschreiben) is safest because it creates a timestamped proof of delivery. Hand delivery with a witness is also valid. Always retain proof of delivery for legal protection.
- What happens if I fail to issue a work reference within 10 days?
- Unreasonable delay can expose you to liability for lost job opportunities or wage claims. The employee can pursue mediation or legal action. Issue the reference promptly, even if the employment ended badly. A brief, factual reference is safer than none at all.
General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.