Jurilo by Lawise.ai:
A termination – whether by the employer or the employee – has not only emotional but also financial consequences. Many employees ask themselves: How much money will I lose due to the termination? Or: Can I even benefit financially? The answer depends on various factors – such as the notice period, outstanding vacation, bonus entitlements, or waiting periods with unemployment insurance (RAV). In this article, we show what financial consequences a termination can have – both positive and negative.
1. SALARY DURING THE NOTICE PERIOD (SWITZERLAND)
During the notice period, you are entitled to your full salary – including all contractually agreed allowances (e.g., 13th month salary, child allowances, expense allowances). The notice period according to Art. 335c CO is:
1 month in the 1st year of service
2 months in the 2nd to 9th year of service
3 months from the 10th year of service
(each at the end of the month)
→ The longer the notice period, the more salary you will still receive.
2. PAYMENT OF VACATION AND OVERTIME (SWITZERLAND)
Unused vacation days must be paid out upon termination of the employment relationship (Art. 329d CO). The same applies to uncompensated overtime, provided there is an entitlement (Art. 321c CO).
→ This can lead to a one-time back payment of wages.
3. BONUS, COMMISSION, GRATUITY
Whether you are still entitled to a bonus or gratuity upon termination depends on the contractual arrangement. Bonuses with salary character are owed proportionally, voluntary gratuities are not necessarily.
→ Possible gain or loss depending on the arrangement.
4. UNEMPLOYMENT BENEFITS (RAV) (SWITZERLAND)
After termination, you are entitled to unemployment daily benefits under certain conditions. The amount is:
70–80% of the insured earnings
Maximum 520 daily benefits (depending on age and contribution period)
→ Attention: In case of self-inflicted unemployment, a waiting period may apply (no money for 1–60 days).
5. SEVERANCE PAY / SOCIAL PLAN
In individual cases (e.g., mass layoffs or long-term company affiliation), a severance payment or a payment from a social plan may be made.
→ Possible financial gain in case of operational termination.
6. DAMAGES OR COMPENSATION FOR WRONGFUL TERMINATION (SWITZERLAND)
If a termination is deemed wrongful, the employer may be required to pay compensation of up to six months' salary (Art. 336a CO).
→ Possible financial advantage in case of a successful lawsuit.
7. PENSION FUND (BVG) AND VESTED BENEFITS
Upon termination, the accumulated pension fund assets are transferred to a vested benefits account. They are not lost, but are no longer available until you contribute them to a new employment relationship or withdraw them.
→ No direct loss, but restricted access.
8. DAILY SICKNESS BENEFITS INSURANCE (SWITZERLAND)
If you become ill during the notice period, the employment relationship may be extended under certain circumstances (blocking period according to Art. 336c CO). Additionally, a daily sickness benefits insurance (if available) can provide wage replacement.
→ Possible protection against income loss.
CONCLUSION
Whether you lose or gain money through a termination depends on many factors: notice period, outstanding claims, behavior at the RAV, contractual arrangements, and more. A careful review of your own rights and obligations is worthwhile – especially before resigning yourself or in case of termination by the employer.
Many underestimate the costs of a termination – especially due to waiting periods or lost bonuses. Many underestimate the costs of a termination – especially due to waiting periods or lost bonuses.
👉 Unsure how much money you will lose or gain from your termination?
Jurilo analyzes your situation according to Swiss employment law – structured & legally sound.
👉 See also: Waiting Period at the RAV – Reasons & Duration
👉 Related: Wage Reclaim by the Employer – When Is It Allowed?
👉 Basics: Termination by Employer vs. Employee – Switzerland
FAQ ON TERMINATION – HOW MUCH MONEY DO I LOSE OR GAIN?
Do I still receive salary during the notice period?
Yes. You are entitled to your full salary during the notice period – including allowances and contractual benefits.
What happens to my vacation upon termination?
Unused vacation days must be paid out. This can lead to an additional wage payment.
Am I entitled to a bonus despite termination?
If the bonus has salary character (e.g., target bonus), it is owed proportionally. Voluntary bonuses or gratuities only if contractually guaranteed.
Should I expect a waiting period at the RAV?
Only if you resign yourself or if the termination was your own fault. Then the RAV can impose a waiting period of 1–60 days.
Will I receive severance pay?
Only in exceptional cases – e.g., with social plans, mass layoffs, or long-term company affiliation. There is no legal entitlement.
What happens to my pension fund?
Your BVG assets are transferred to a vested benefits account. They remain preserved but are temporarily blocked.
Can I claim money for wrongful termination?
Yes. You can claim compensation of up to six months' salary – in addition to your regular salary.
What about overtime upon termination?
Uncompensated overtime must be paid out, provided there is an entitlement and it is not covered by a flat-rate agreement.
How much unemployment benefit will I receive?
Depending on family situation, 70–80% of the insured earnings. The exact amount depends on the last salary and the contribution period.
Can I benefit financially from a termination?
Yes – e.g., through bonus payout, vacation compensation, severance pay, or compensation for wrongful termination. But losses (e.g., waiting periods) are also possible. An individual assessment is crucial.
