A Severance Letter To Employee is a crucial document used in Switzerland when terminating employment relationships through mutual agreement or as part of a unilateral termination process. It serves as the formal written confirmation of the severance terms discussed and agreed upon between the employer and employee. The document must align with Swiss employment law requirements, particularly the Swiss Code of Obligations, and address key aspects such as final payment calculations, benefit arrangements, and post-employment obligations. This letter is typically used in situations involving redundancies, restructuring, mutual separations, or negotiated exits, and must carefully balance the interests of both parties while ensuring compliance with Swiss legal requirements regarding notice periods, social security contributions, and pension fund arrangements. The document's content and structure reflect Switzerland's specific employment law framework and business practices.
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1. Letter Header: Company letterhead, date, and employee's contact details
2. Subject Line: Clear indication that this is a severance letter
3. Opening Statement: Reference to previous discussions/meetings regarding termination and confirmation of employment end
4. Termination Details: Confirmation of last working day and any garden leave arrangements
5. Severance Payment: Details of the severance amount, calculation method, and payment timing
6. Final Salary and Benefits: Information about final regular salary, pro-rated bonus if applicable, and treatment of benefits
7. Company Property: Instructions regarding return of company property and timeline
8. Ongoing Obligations: Reference to continuing confidentiality obligations and other post-employment restrictions
9. Full and Final Settlement: Statement that the severance package represents a full and final settlement
10. Tax and Social Security: Statement about tax and social security treatment of the severance payment
11. Acknowledgment: Space for both parties to sign and date the letter
1. Garden Leave Provisions: Include when the employee will be placed on garden leave during the notice period
2. Reference Provision: Include when agreeing to provide employment references
3. Outplacement Support: Include when offering career transition services
4. Non-Compete Provisions: Include when reinforcing or modifying existing non-compete obligations
5. Health Insurance Extension: Include when offering continued health insurance coverage
6. Equity/Stock Options: Include when addressing treatment of outstanding equity or stock options
7. Legal Fees: Include when the company is contributing to employee's legal fees
8. Release of Claims: Include when requesting employee to waive potential legal claims
1. Severance Calculation Schedule: Detailed breakdown of severance payment calculation
2. Benefits Summary: Summary of all benefits and their treatment post-termination
3. Company Property Checklist: List of company items to be returned
4. Social Insurance Certificate: Documentation for unemployment insurance registration
5. Pension Fund Information: Details about pension fund arrangements and options
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Real Estate
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Relevant Teams
Human Resources
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Administration
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CEO
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Head of Human Resources
HR Director
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