Redundancy in Switzerland: your rights and what to do

Notice periods and garden leave

Swiss law sets minimum notice periods: 1 month during the first year of service, 2 months from year 2 through year 9, and 3 months from year 10 onwards. These are minimums, employment contracts frequently specify longer notice (3 months from year 1 is standard in banking and senior roles). Garden leave (working out notice at home while remaining employed) is legal in Switzerland when specified in the contract, it protects the employer's legitimate interests (client relationships, confidential information) without disadvantaging the employee financially.

During the notice period, you remain an employee with all associated rights: salary, benefits, accruing leave, LPP contributions. If termination occurs during a protected period (illness), the notice is automatically suspended until the protection period ends, then restarts from zero. For full details on what your employment contract can and cannot override, see our dedicated guide.

Severance pay: what Switzerland does and doesn't provide

Switzerland has no statutory system of severance pay equivalent to the UK's redundancy payment or France's indemnité légale de licenciement. There are three exceptions where the Code of Obligations provides severance: employees over 50 with 20+ years of service (Article 339b CO, a "solidarity payment" of 2 months' salary); situations where no pension provision was made by the employer; and termination of a fixed-term contract before its natural end. For most redundancy situations involving employees under 50 or with fewer than 20 years of service, there is no legal right to severance beyond the notice period.

In practice, many Swiss employers, particularly large multinationals, negotiate severance packages as part of collective redundancy processes or for senior individual cases. These are contractual, not statutory. They typically range from 1–3 months' salary per year of service for senior roles, often structured as a settlement agreement (accord de fin de rapports de travail) that exchanges severance for waiver of legal claims.

Swiss unemployment benefits (AC) after redundancy

Switzerland's unemployment insurance (assurance chômage, AC) is one of the most generous in the world by income replacement rate. The conditions for eligibility: you must have contributed to AC for at least 12 months in the 24 months preceding unemployment; you must be available for work; you must register with the ORP (Office Régional de Placement) within 5 days of knowing your termination date. The benefit rate is 80% of the "insured salary" (capped at CHF 148,200/year gross) if you have dependants or earn below CHF 3,797/month; 70% otherwise. The maximum duration is 520 daily indemnities (approximately 2 years) for those with 24 months of contribution.

For expats working in Switzerland: permit holders (B, C) who lose their job are entitled to AC on the same basis as Swiss nationals, provided the contribution conditions are met. A B permit holder who is unemployed may face a renewal complication, the cantonal authority may refuse to renew a B permit if you are without employment for an extended period. Registering with the ORP quickly and actively job searching is essential to maintain permit validity during unemployment.

For a B permit holder, unemployment isn't just a financial gap, it's a clock the cantonal authority is also watching.

The certificat de travail

The certificat de travail is the formal employment certificate that Swiss employers are legally required to provide at the end of any employment relationship. It must document: the duration of employment, your role(s), your principal tasks, and an assessment of your performance and conduct. A negative, inaccurate, or damaging certificat de travail is a legal liability for the employer, courts have awarded damages to employees who suffered career harm from an unjustifiably negative certificate.

You are entitled to request a qualified certificat de travail (with performance assessment) or a simple one (dates and role only, on request). In practice, always request the qualified version. If the wording is unsatisfactory, you have the right to request a correction, and if the employer refuses, you can take the matter to the labour court. Consult a lawyer specialising in Swiss labour law if the certificate is damaging, the process for correction is well-established.

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Frequently asked questions

Can I negotiate a settlement package (accord de fin de rapports) in Switzerland?

Yes, and in many redundancy situations, particularly at senior level or in large-scale restructuring, it is expected. A settlement agreement typically waives your right to challenge the termination in exchange for an enhanced severance. Before signing, have a labour lawyer review it, waiving legal rights in exchange for inadequate compensation is a common mistake. The negotiation window is generally the notice period; once you have left and signed nothing, leverage diminishes.

How quickly can I claim unemployment benefits after being made redundant?

Register with the ORP within 5 days of receiving your termination notice, not after your last working day. Benefits start from the first day of actual unemployment (after notice period ends), subject to a waiting period (délai d'attente) of 5 days. The ORP interview and registration process takes 1–2 weeks, registering early avoids gaps in coverage. Bring your identity documents, work permit, termination letter, and last 12 months of payslips to the first ORP appointment.

Does redundancy affect my work permit in Switzerland?

For C permit holders and EU nationals on B permits: the permit is generally not immediately affected. For non-EU nationals on B permits: the permit is tied to employment, and extended unemployment may lead the cantonal authority to decline renewal. Register with the ORP immediately, job-search actively, and document your efforts. In practice, the cantonal authorities are pragmatic about employed professionals who have been made redundant, the risk materialises for those who stop searching or become unreachable.

Is there a protected period during illness when the employer cannot give notice?

Yes. Swiss law prohibits serving notice during illness: 30 days of protection in the first year of service, 90 days from years 2 through 5, and 180 days from year 6 onwards. If the employer gives notice while you are on sick leave, the notice is void and must restart once the protection period ends. This protection applies per illness episode, not cumulatively across your career. It does not apply if the employer notifies you before the illness begins.

What is a collective redundancy and what extra rights does it trigger?

A collective redundancy in Switzerland is defined as 10 or more dismissals within 30 days in companies with 20-99 employees, or 10% of the workforce (minimum 10) in larger companies (OR 30 or more in companies with 300+ staff). When these thresholds are met, the employer must notify the cantonal employment office (KIGA) and consult the employee representatives or workforce before issuing individual notices. Failure to follow this procedure can render the terminations unlawful. Individual rights (notice periods, AC eligibility) remain unchanged.