Immediate termination of employment contract

Immediate termination of employment contract in Swiss labor law

Immediate termination for just cause is an exceptional measure and must be accepted restrictively. Only a particularly serious breach of contract can justify such a measure. The term “breach” refers to a violation of an obligation arising from the employment contract, but other incidents may also justify such a measure. The breach must be objectively such as to destroy the relationship of trust essential to the employment contract, or at least to affect it so profoundly that continuation of the employment relationship cannot reasonably be expected. Immediate dismissal may be justified for a less serious reason which has been repeated (e.g. repeated lateness, failure to keep to working hours, unjustified absence, late notification of inability to work or medical certificate, failure to follow instructions). In this case, the breach can only lead to immediate termination if it is repeated despite one or more warnings, if possible in writing. The judge is free to decide whether there are just grounds for termination by the employer or the employee. Dismissal for just cause must take place without delay (within a very short period of two or three days, not counting weekends and public holidays, or even one week for cases requiring a decision by a corporate body of a multi-person company) as soon as the just cause arises. Both the employer and the employee may terminate the employment contract immediately at any time for just cause.

Immediate resignation (= immediate notice given by the employee)

Immediate resignation by the employee is justified when the employer is unable to guarantee his own solvency with a view to paying future wages (art. 337a CO), or if the employee is subjected to acts of violence perpetrated by the employer himself (assault, insults, sexual harassment, theft, etc.). The situation is somewhat different in the case of moral harassment (mobbing) of which the employee may be a victim, whether perpetrated by the employer himself or by a third party (colleague, superior, client, etc.), or by reprehensible acts perpetrated against the employee by third parties in the professional context. In such cases, it is advisable to formally challenge the employer (by registered letter), reminding him of his obligations to respect and protect the employee’s personality (as set out in art. 328 CO), before deciding to resign with immediate effect.

Immediate dismissal (= immediate dismissal by the employer)

Firstly, it should be noted that the employer may immediately dismiss the employee at any time, even if the latter is protected against ordinary dismissal at an inopportune time (e.g. due to illness). The judge takes into account the circumstances of the particular case, including the position and responsibility of the employee, the type and duration of the employment relationship, and the nature and extent of the breaches. However, an inability to work through no fault of the employee’s own cannot in any circumstances constitute just cause for immediate dismissal. The same applies to a drop in productivity or failure to meet targets. An employee who receives immediate notice of termination for just cause may – if he considers that there are no just grounds for termination – contest their existence and bring the matter before a judge. To do so, he must send his objection to the termination in writing to the employer as soon as possible, giving him a period of time in which to reverse his decision. Once this period has elapsed, the employee may take the matter to court. As far as possible, the employee should continue to offer his services, or at least propose them in the written objection.