Abusive Termination in Switzerland – Rights & Compensation under the Swiss Code of Obligations (CO)
Jurilo by Lawise.ai:
An abusive termination exists in Switzerland when an employment relationship is terminated for reasons that violate the principle of good faith. Although the termination remains legally valid, it may trigger an obligation to pay compensation under Art. 336 CO.
What Is an Abusive Termination in Switzerland?
A termination is considered abusive if it is based on reasons that violate the principle of good faith—meaning they are objectively unjustified or discriminatory. While the termination remains valid, it may give rise to a compensation claim.
In particular, a termination is abusive if it is based on irrelevant, discriminatory, or purely personal motives.
Legal Basis: Art. 336 CO
The legal framework for abusive termination is set out in the following provisions of the Swiss Code of Obligations (CO):
- Art. 336 CO
- Art. 336a CO
- Art. 336b CO
Typical Cases of Abusive Termination
- Termination due to illness (to be distinguished from termination during illness subject to the blocking period under Art. 336c CO)
- Termination following a conflict without an objective justification
- Termination because the employee asserted legal rights (e.g. claiming unpaid wages)
- Termination for personal reasons unrelated to the employment relationship (e.g. religion, political opinion)
When Is a Termination After a Conflict Not Abusive?
If the conflict significantly impairs cooperation within the company and the employer can prove this, termination may be permissible—even if it occurs after a dispute.
What Rights Do Employees Have in Case of Abusive Termination?
Reinstatement cannot be demanded—the termination remains valid.
- Entitlement to compensation (up to six months’ salary)
- Right to formally object to the termination
- Right to judicial clarification and taking of evidence
Even a formally correct termination may lead to a compensation obligation if it violates Art. 336 CO.
Compensation for Abusive Termination: Amount & Calculation
- Maximum of six months’ salary pursuant to Art. 336a CO
- The court decides at its discretion, considering all circumstances
- Relevant factors include:
- Severity of the employer’s misconduct
- Duration of the employment relationship
- Age, social situation, and re-employment prospects of the employee
- Employer’s economic situation
Deadlines and Procedure: What Affected Employees Must Observe
- An objection must be submitted in writing, no later than the end of the notice period (Art. 336b CO)
- If no agreement is reached, a claim must be filed within 180 days after the end of the employment relationship—otherwise the claim lapses
Employer Perspective: How HR Can Avoid Abusive Terminations
- Document termination reasons carefully
- Address conflicts early and communicate proactively
- Avoid terminations based on emotional or personal motives
- When in doubt: seek legal advice
Conclusion: When Is It Worth Reviewing a Termination?
Always consider a review if:
- the termination was unexpected or unjustified
- a conflict, illness, or assertion of rights preceded the termination
- there is suspicion that personal characteristics (e.g. age, origin) played a role
👉 Not sure whether your termination was abusive?
Jurilo reviews terminations under Swiss employment law—structured and legally sound.
FAQ on Abusive Termination
When is a termination considered abusive?
A termination is abusive if it is based on a legally impermissible reason that violates the principle of good faith. The relevant cases are set out in Art. 336 CO.
Is an abusive termination automatically invalid?
No. It remains valid, but the employer owes compensation.
How high can the compensation be?
Up to six months’ salary—the court decides on a case-by-case basis.
What is the difference compared to the blocking period during illness?
A blocking period renders a termination null and void; abuse only leads to compensation.
Do I have to challenge the termination immediately?
Yes. At the latest by the end of the notice period—in writing.
Can I claim compensation for fixed-term contracts as well?
Yes. Abusive termination is also possible in fixed-term contracts and may give rise to compensation.
Can a summary dismissal also be abusive?
Yes. A summary dismissal can be abusive in addition to potentially being unjustified.
Who must prove that the termination was abusive?
The employee must make the abusive reason credible—for example through documents or witnesses.
Can I receive unemployment benefits despite an abusive termination?
Yes. However, in cases of self-inflicted termination or unjustified summary dismissal, a temporary suspension may apply.
Does the termination letter have to state the reason for termination?
No. However, upon request, the employer must provide the reason in writing (Art. 335 para. 2 CO).
Can I challenge a termination due to pregnancy?
Yes. If it occurs during the blocking period, it is null and void—and it may also be abusive.
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