Jurilo by Lawise.ai:
What happens to unused vacation days and overtime when the employment relationship ends? In Switzerland, there are clear rules about what happens to untaken vacation and worked overtime upon termination. In this article, you'll learn when you're entitled to payment, how the calculation works, and what you need to watch out for.
WHAT HAPPENS TO VACATION UPON TERMINATION?
According to Art. 329d CO, vacation must generally be taken and not paid out. Payment is only permissible when taking vacation is no longer possible – for example, because the employment relationship is ending.
Typical cases for payment:
Termination with short remaining time (e.g., immediate dismissal)
Illness or accident during the notice period
Employer prevents taking vacation
Important:
Vacation is compensated in money if it cannot be taken by the last working day. The payout amount corresponds to the full salary including allowances.
WHAT HAPPENS TO OVERTIME UPON TERMINATION IN SWITZERLAND?
Outstanding overtime must be compensated or paid out when the employment relationship ends – depending on contractual arrangements and company practice.
Principle according to Art. 321c CO:
Overtime should be compensated with time off of equal duration, if possible.
If this is not possible, there is an entitlement to payment with a 25% wage supplement, unless otherwise agreed in writing.
Example:
You have 20 hours of overtime and can no longer take them before leaving. Then you are entitled to payment – provided you can prove them.
PAYING OUT VACATION UPON TERMINATION: HOW IT'S CALCULATED
The calculation is based on the average monthly salary. For irregular income (e.g., hourly wage, shift allowances), an average of the last months is used.
Example calculation:
Monthly salary: CHF 5,000
Outstanding vacation days: 5
Daily wage: CHF 5,000 ÷ 21.75 ≈ CHF 230
Payout: 5 × CHF 230 = CHF 1,150
Note: Even with part-time work or hourly wages, there is an entitlement to payment of untaken vacation.
WHAT TO DO IN CASE OF DISPUTES ABOUT VACATION OR OVERTIME?
Documentation is crucial: Keep written records of vacation and overtime balances.
Check the contract: Is there a provision for compensation or payment?
Seek dialogue: Clarify uncertainties early with the employer.
Legal steps: In case of disagreement, you can assert your claims in court.
CONCLUSION: VACATION & OVERTIME UPON TERMINATION – IT PAYS TO LOOK CLOSELY
Whether with ordinary or immediate termination: Outstanding vacation and overtime don't simply expire. You are entitled to payment if taking them is no longer possible. Pay attention to clean documentation and check your payslip carefully – because this often involves several hundred or thousand francs.
Sources:
Art. 329d CO – Vacation entitlement
Art. 321c CO – Overtime regulation
👉 Unsure whether your vacation or overtime was calculated correctly?
Jurilo reviews vacation and overtime entitlements according to Swiss employment law – clear, structured, and legally sound.
👉 Notice period in Switzerland: simply explained
👉 Immediate dismissal in Switzerland: Only permitted in exceptional cases
👉 Unemployment benefits after termination: Entitlement & waiting period
👉 Continued wage payment during illness in Switzerland
FAQ ON VACATION & OVERTIME UPON TERMINATION
Does the employer have to pay out vacation upon termination?
Yes, if taking vacation is no longer possible by the time of departure, the remaining vacation days must be paid out.
Can I still take vacation during the notice period?
Yes, provided taking vacation is operationally possible and there are no urgent reasons against it.
Do my vacation days expire if I don't take them?
No, upon termination, untaken vacation must either be taken or paid out.
How is vacation calculated upon termination?
Payment is based on the average daily wage including allowances.
Am I entitled to payment of overtime upon termination?
Yes, if compensation through time off is no longer possible, overtime must be paid out.
Is there a supplement on paid-out overtime?
Yes, generally a 25% supplement, unless there is a different written agreement.
What happens to excess hours upon termination?
Excess hours (more than 45/50 hours per week) must also be paid out if no time-off compensation occurs.
Can the employer simply offset vacation against the notice period?
Only if taking vacation is possible and reasonable – a unilateral directive is not always permissible.
What to do if the employer doesn't pay out vacation or overtime?
Assert your claim in writing and if necessary enforce it legally (e.g., through a conciliation office).
Does this also apply to immediate dismissal?
Yes, even with immediate dismissal, outstanding vacation and overtime must be paid out.
