Jurilo by Lawise.ai:
Termination without notice is one of the most drastic measures in Swiss employment law and often leads to high financial risks when mistakes are made.
WHAT DOES WITHOUT NOTICE MEAN?
Termination without notice ends the employment relationship immediately, meaning without observing a notice period. It is only permissible if there is just cause – that is, conduct or circumstances that make the continuation of the employment relationship unreasonable (Art. 337 CO).
In many cases, ordinary termination would be permissible – however, termination without notice goes too far.
👉 Notice periods in Switzerland
LEGAL CONSEQUENCES FOR BOTH PARTIES
For the employer:
If there is no just cause, they owe the employee full compensation for damages as well as compensation of up to 6 months' salary (Art. 337c CO).
For the employee:
If they terminate without notice and without just cause, they owe the employer compensation of up to ¼ month's salary as well as additional damages (Art. 337d CO).
VALID REASONS (WITH EXAMPLES)
Termination without notice is only permissible for just cause – meaning particularly serious breaches of duty that destroy the relationship of trust.
Examples:
Theft:
Taking company property, e.g., cash or materials.
Breach of trust:
Disclosure of trade secrets, intentional false statements, e.g., regarding expenses or working hours.
Violence or threats:
Physical attacks or serious threats against colleagues or supervisors.
Refusal to work:
Repeated, unjustified refusal to work or follow instructions.
Unexcused absence:
Failing to appear for several days without notification or valid reason.
Important: The reason must be so serious that continuation of the employment relationship is no longer reasonable for the terminating party (Art. 337 CO).
INVALID REASONS
Not every misstep justifies termination without notice. Common invalid reasons and employer mistakes:
Minor offenses:
Small transgressions such as being late once or an impolite tone are not sufficient.
No prior warning:
For less serious breaches of duty, a warning is usually required before termination without notice.
Delayed reaction:
The termination must be issued immediately after becoming aware of the incident. Waiting can lead to invalidity.
Unclear evidence:
Without clear evidence (e.g., in case of suspected theft), termination without notice is risky.
Personal antipathy or conflicts:
Team tensions or disagreements are not sufficient grounds.
Termination out of revenge or to prevent claims:
Such terminations are considered abusive (Art. 336 CO) and can lead to compensation claims.
Conclusion: Termination without notice is only permissible for serious, clearly provable incidents – otherwise legal and financial consequences may follow.
CONSEQUENCES OF UNLAWFUL TERMINATION WITHOUT NOTICE
If termination without notice occurs without just cause, it is unjustified – with clear financial consequences for the employer:
1. Back pay (compensation for damages)
The employee is entitled to the salary they would have received if the employment relationship had been terminated with proper notice.
(Art. 337c para. 1 CO)
The following is credited:
What the employee earned from new employment
What they intentionally failed to earn
What they saved due to the termination
2. Compensation (penalty payment)
Additionally, the court may award the employee compensation – up to 6 months' salary.
(Art. 337c para. 3 CO)
This compensation is:
not dependent on actual damages
a type of penalty for the employer
dependent on factors such as duration of employment, severity of personality violation, economic situation, etc.
Important:
Both claims – back pay and compensation – must be asserted in court.
The compensation is also subject to garnishment.
Conclusion: An unlawful termination without notice can become expensive for the employer.
👉 Jurilo realistically evaluates terminations without notice according to Swiss CO.
FAQ ON TERMINATION WITHOUT NOTICE
Is a warning necessary?
Yes, for less serious violations, a warning is usually required before termination without notice.
Burden of proof?
The terminating party must prove the just cause – usually the employer.
Is termination without notice during illness permissible?
Yes, protection periods only apply to ordinary terminations – not to termination without notice.
Does the protection period under Art. 336c CO also apply to termination without notice?
No, protection periods do not apply to termination without notice.
When does just cause for termination without notice exist?
When continuation of the employment relationship is unreasonable – e.g., in case of theft or violence.
How quickly must termination without notice be issued?
Immediately – usually within a few days after becoming aware of the incident.
What are the consequences of unjustified termination without notice?
Back pay plus possible compensation of up to 6 months' salary.
Must termination without notice be in writing?
Only upon request of the other party – otherwise verbal notice is also valid (Art. 337 para. 1 CO).
Can the employee also terminate without notice?
Yes, the employee can also terminate without notice if there is just cause.
