This document template is specifically designed for situations where both employer and employee agree to end a fixed-term employment contract before its scheduled completion date in Switzerland. The template "Ending A Fixed Term Contract Early" is crucial when parties need to document their mutual agreement to terminate, ensuring compliance with Swiss employment law, particularly the Swiss Code of Obligations. It's typically used when circumstances such as business restructuring, employee career changes, or mutual agreement to end the relationship arise before the contract's natural conclusion. The document includes comprehensive provisions for financial settlements, continuing obligations, and mutual releases, while ensuring all Swiss legal requirements are met. It's particularly important as fixed-term contracts in Switzerland have specific legal protections and requirements that differ from regular employment contracts.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Details of the original fixed-term contract including its start date, intended end date, and reference number
3. Definitions: Key terms used in the agreement including 'Termination Date', 'Original Contract', and 'Settlement Payment'
4. Early Termination Agreement: The mutual agreement to terminate the contract early and the specific termination date
5. Final Salary and Benefits: Details of the final salary payment, including pro-rata bonus if applicable, and treatment of benefits
6. Settlement Payment: Any additional payments agreed as part of the early termination
7. Company Property: Requirements for returning company property and documents
8. Final Release: Mutual release of claims between the parties
9. Tax Implications: Statement regarding the tax treatment of payments
10. Governing Law: Confirmation that Swiss law governs the agreement
11. Signatures: Execution blocks for both parties
1. Garden Leave: Include if the employee will be placed on garden leave during notice period
2. Post-Termination Restrictions: Include if enforcing or modifying any existing non-compete or non-solicitation clauses
3. Reference: Include if a specific form of reference has been agreed
4. Continuing Obligations: Include if specific obligations from the original contract continue post-termination
5. Insurance Continuation: Include if there are specific arrangements regarding insurance coverage post-termination
6. Training Cost Repayment: Include if there is any waiver or modification of training cost repayment obligations
7. Outstanding Leave: Include if there are specific arrangements for unused vacation days
8. Legal Costs: Include if there is any agreement regarding payment of legal costs
1. Schedule 1 - Payment Calculation: Detailed breakdown of all payments including final salary, settlement payment, and deductions
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Benefits Summary: Summary of treatment of various benefits and their termination dates
4. Appendix A - Form of Release: Formal release document if required under Swiss law
5. Appendix B - Reference Letter: Agreed form of reference letter if applicable
Authors
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