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Handbook for Investors. Business location in Switzerland.

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In addition, under federal law, employees have time off on n<strong>in</strong>e<br />

legally stipulated public holidays. As cantons may stipulate their<br />

own public holidays, some cantons may have more public holidays.<br />

Only August 1, New Year’s Day, Ascension Day and Christmas<br />

Day are days off throughout the country; all other public<br />

holidays vary from canton to canton. Employees also receive time<br />

off <strong>for</strong> marriage, funerals, mov<strong>in</strong>g, dental appo<strong>in</strong>tments, etc. The<br />

law does not stipulate how much time may be taken off.<br />

Holiday calendar<br />

www.feiertagskalender.ch<br />

Languages: German, English, French, Italian<br />

8.5 Notice of term<strong>in</strong>ation and<br />

short-time work<strong>in</strong>g.<br />

An employment contract can be term<strong>in</strong>ated <strong>in</strong> writ<strong>in</strong>g or verbally<br />

at any time by either party and without valid reason. Under Swiss<br />

law, the employee representative committee does not have a say<br />

<strong>in</strong> this type of term<strong>in</strong>ation.<br />

Only <strong>in</strong> the case of mass redundancies does the employee representative<br />

committee have the right to be consulted. However,<br />

the recipient of the notice of term<strong>in</strong>ation has the right to demand<br />

that the reason <strong>for</strong> term<strong>in</strong>ation be stated <strong>in</strong> writ<strong>in</strong>g. There is no<br />

<strong>in</strong>vestigation of whether or not the term<strong>in</strong>ation is socially unjustified,<br />

i.e. whether the reasons are related to the per<strong>for</strong>mance or<br />

other characteristics of the employee or whether difficult bus<strong>in</strong>ess<br />

considerations made the redundancy necessary. An employment<br />

contract can be ended through:<br />

• term<strong>in</strong>ation<br />

• term<strong>in</strong>ation due to change of contract (new or changed contract<br />

is not accepted by employee)<br />

• agreement to term<strong>in</strong>ate employment (mutual cancellation of<br />

employment contract)<br />

• term<strong>in</strong>ation on a specific date (<strong>for</strong> fixed-term contracts)<br />

• retirement<br />

• death of the employee<br />

8.5.1 Notice periods and protection aga<strong>in</strong>st dismissal<br />

In general, the notice period is def<strong>in</strong>ed <strong>in</strong> the employment contract,<br />

<strong>in</strong> the standard employment contract, by the relevant profession<br />

or <strong>in</strong> the collective barga<strong>in</strong><strong>in</strong>g agreement. If there is no contract or<br />

regulation, then the provisions of the Swiss Code of Obligations<br />

apply:<br />

• dur<strong>in</strong>g the probationary period (max. three months): seven days<br />

• dur<strong>in</strong>g the first year of service: one month<br />

• from the second to the n<strong>in</strong>th year of service: two months<br />

• from the tenth year of service onwards: three months<br />

The notice period can be changed <strong>in</strong> writ<strong>in</strong>g but may not be<br />

shorter than one month (except under a collective barga<strong>in</strong><strong>in</strong>g<br />

agreement dur<strong>in</strong>g the first year of service). For employees <strong>in</strong><br />

managerial positions, notice periods of up to six months are often<br />

fixed from the very outset of employment. After the probationary<br />

period, notice of term<strong>in</strong>ation may only be given at the end of the<br />

month. In order <strong>for</strong> the term<strong>in</strong>ation notice to be legally valid, the<br />

person to be dismissed must receive it be<strong>for</strong>e the notice period<br />

beg<strong>in</strong>s. Even <strong>in</strong> the case of summary dismissal, the employee’s<br />

salary will cont<strong>in</strong>ue to be paid out until the end of the notice<br />

period.<br />

An employment contract can be term<strong>in</strong>ated summarily only <strong>in</strong><br />

serious exceptional circumstances, such as fraud, refusal to work<br />

or competition with the employer. In practice, summary dismissals<br />

are very difficult to carry out, as the reason <strong>for</strong> term<strong>in</strong>ation is<br />

often open to <strong>in</strong>terpretation.<br />

It is improper to dismiss an employee on the grounds of age,<br />

color, religion, political affiliation or membership of a trade union.<br />

Improper dismissals can be appealed aga<strong>in</strong>st and may give rise<br />

to claims <strong>for</strong> compensation.<br />

There are certa<strong>in</strong> times when it is not possible to dismiss an employee,<br />

such as when the employee is sick, has suffered an accident,<br />

is pregnant or is serv<strong>in</strong>g <strong>in</strong> the military, civil defense, civilian<br />

service or aid campaigns abroad. Dismissals <strong>in</strong> these situations<br />

are not valid and are known as term<strong>in</strong>ation dur<strong>in</strong>g barred periods.<br />

8.5.2 Short-time work<strong>in</strong>g and mass redundancies<br />

A company may be <strong>for</strong>ced to take measures to lower staff costs<br />

<strong>in</strong> the event of a deterioration <strong>in</strong> the order situation or <strong>for</strong> other<br />

reasons. Overcapacity may be alleviated through a temporary reduction<br />

<strong>in</strong> or complete halt to production. In order to ma<strong>in</strong>ta<strong>in</strong> jobs,<br />

the employer receives 80 % of the lost <strong>in</strong>come of the employees<br />

74 <strong>Handbook</strong> <strong>for</strong> <strong>Investors</strong> 2010

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