What Mistakes Should You Avoid When Resigning or Taking Leave in Switzerland?
Notice periods, leave entitlements, overtime, and final pay settlements in Switzerland: the most common mistakes for Hungarian employees, with concrete legal background.
How does termination of employment work in Switzerland: notice periods and formal requirements?
The notice period depends on how long the employee has worked for the company and what the contract stipulates. The Code of Obligations (OR) sets statutory minimums, from which the contract may deviate within certain limits.
The statutory notice periods after the probationary period (Probezeit), unless the contract provides otherwise:
Length of employment | Statutory notice period (OR 335c) |
|---|---|
During probation (max. 3 months) | 7 days |
1st year | 1 month, to the end of the month |
2nd–9th year | 2 months, to the end of the month |
From the 10th year | 3 months, to the end of the month |
A few important rules that are frequently misunderstood:
The notice period expires on the last day of the month, unless the contract or collective agreement (GAV) provides otherwise.
The probationary period may not exceed three months; it can be shortened or even waived entirely in the contract.
The notice period may be extended by contract, but after the first year it may not be shorter than one month and must be of equal length for both parties.
Under Swiss law, notice of termination does not have to be in writing— verbal notice can be valid. In practice, however, it is always advisable to submit notice in writing in a verifiable form (registered letter). At the employee's request, the employer must provide written reasons for the termination.
What are the typical mistakes that occur during the termination process?
The most common mistake is handling deadlines and formalities imprecisely, which can push back the end of the employment relationship by a full month.
Ignoring the end-of-month rule. If notice is received in the middle of a month, the notice period often only begins on the first day of the following month. With a one-month notice period, for example, notice delivered on 3 March will typically extend the employment relationship until 30 April.
What matters is when the notice is received (not when it is sent). The decisive factor is when the notice comes to the other party's attention, not when it was posted. A delay in delivering a registered letter can shift the end date by an entire month.
Ignoring protected periods (Sperrfrist). In certain situations, an employer cannot validly give notice (OR 336c): during illness, accident, pregnancy and the post-birth period, and during military or civilian service. In the case of illness, the length of protection varies according to years of service. If notice is given during such a period, it may be invalid or the notice period may be suspended.
Underestimating abusive termination (missbräuchliche Kündigung). In Switzerland, termination is generally valid without reasons, but dismissal on certain grounds (e.g. age, origin, trade union membership, or the assertion of a legitimate claim) may be deemed abusive and give rise to a claim for compensation.
Missing the deadline to raise an objection. If an employee considers the termination abusive, they must raise a written objection before the notice period expires, and there are also strict deadlines for bringing a court claim. Checking the exact deadlines is essential.
A note for Hungarians: termination also affects your residence permit. With a B permit (Ausländerausweis B), prolonged unemployment can affect your right of residence, so it is advisable to register immediately after termination with the regional employment centre (RAV / ORP) and unemployment insurance (Arbeitslosenversicherung / ALV).
How much annual leave are employees entitled to by law in Switzerland?
The statutory minimum is four weeks of paid annual leave per year, or five weeks for employees under the age of twenty (OR 329a). Many contracts and collective agreements (GAV) provide more than this.
Important details:
The four weeks which equals twenty working days for full-time employees on a five-day week twenty working days in total.
Employees under the age of 20 are entitled to at least five weeks of leave.
Leave must be taken within the calendar year and, by law, at least two consecutive weeks must be granted in one block.
As a general rule, leave cannot be replaced by a cash payment during the employment relationship; a payout is only permitted at the end of employment, for any days not yet taken.
Daily and weekly rest periods are not governed by the leave provisions but by the Labour Act (Arbeitsgesetz / ArG). Its key elements typically include the minimum daily rest period, the weekly day off, and the maximum weekly working hours. Public holidays vary by canton: with few exceptions (e.g. 1 August, the national holiday), the regulation of public holidays falls within cantonal jurisdiction.
How is overtime calculated and what is it worth in Switzerland?
In Switzerland, two distinct concepts must be distinguished: overtime beyond the contractually agreed working hours (Überstunden) and overtime beyond the statutory maximum working hours (Überzeit). The two are settled differently.
Überstunden – work performed in the band between the contractually agreed hours and the statutory weekly maximum. By law, a 25% supplement is payable, unless the contract provides otherwise in writing, or the parties agree to compensate with time off in lieu.
Überzeit – work performed beyond the statutory maximum weekly working hours. The maximum weekly working hours in industrial establishments, office workers, technical staff, and retail are typically 45 hours, and in other sectors 50 hours. Überzeit generally attracts a 25% supplement, and the possibility of compensating it with time off in lieu is more restricted.
Common mistakes regarding overtime:
Failing to document overtime hours. If a claim arises, it is the employee who must be able to prove the hours worked, so it is advisable to keep an up-to-date record.
Assuming that overtime is "included in the salary". This is only valid if the contract explicitly stipulates it within the limits permitted by law — it is more common in senior positions.
Unpaid or uncompensated overtime lapses at the end of the employment relationship if not claimed in time.
How do the employment contract and collective agreement affect working conditions?
In Swiss employment law, the individual employment contract (Arbeitsvertrag) and the collective agreement (Gesamtarbeitsvertrag / GAV, in French convention collective de travail / CCT) build upon the statutory minimums and frequently provide more favourable conditions.
What you should know:
A GAV can cover entire sectors (e.g. construction, hospitality) and may be binding on all workers in that sector.
A GAV may regulate notice periods, minimum wages, leave entitlements, overtime supplements, and the 13th monthly salary.
Where the employment contract and the GAV differ, the more favourable provision for the employee generally prevails, though the details depend on the sector.
A Swiss individual employment contract may briefly refer to the GAV or to internal regulations (Personalreglement); those referenced documents should also be reviewed carefully.
One of the most common mistakes employees make is reading only their contract while overlooking the applicable GAV (collective labour agreement) or internal company policy — yet the actual terms governing notice periods, leave, and overtime are often found there.
What rights and obligations apply during the notice period?
During the notice period, the employment relationship remains fully in force: the employee must continue working, the employer must continue paying wages, and all existing rights are preserved.
A few key points:
Time off to look for a new job. During the notice period, the employee is entitled to reasonable time off to search for new employment; the extent of this is determined by the principle of fairness.
Illness during the notice period. If the employer has given notice and the employee becomes incapacitated due to illness or accident, the notice period may be extended by the protected period (Sperrfrist).
Freistellung (release from the duty to work). The employer may release the employee from the obligation to work during the notice period, but wages must still be paid in full.
Employment reference (Arbeitszeugnis). At the end of the employment relationship, the employee is entitled to a detailed and comprehensive employment reference, which carries significant weight in the Swiss labour market.
A note for Hungarian nationals: once the notice period expires, it is advisable to register with the RAV (regional employment centre) without delay and arrange unemployment insurance. Coordinating Hungarian social security entitlements with the Swiss system may require separate administrative steps, particularly if a return to Hungary is also being considered.
What should you know about severance pay and the final settlement?
In Switzerland, severance pay (Abgangsentschädigung) is not a universal entitlement; it is not owed at the end of most employment relationships. The final settlement (Schlussabrechnung), however, is always relevant: it settles the last salary payment and all outstanding items.
Severance pay. Statutory severance pay (OR 339b) applies only in a narrow set of circumstances — typically to employees aged at least 50 who have worked for the same employer for at least 20 years — and is rare in practice. It can often be offset by benefits from the second pillar (berufliche Vorsorge / BVG).
Final settlement — items typically to be settled:
wages due for the final period,
payment in lieu of unused holiday,
the pro-rated 13th month salary (where applicable),
unpaid or uncompensated overtime,
correct accounting of wage and social security deductions (AHV/AVS, ALV, BVG, and where applicable, withholding tax / Quellensteuer).
Common mistakes at the time of departure:
Failing to check the final settlement line by line.
Leaving the second pillar (BVG) savings unattended — the vested benefit (Freizügigkeitsleistung) must be transferred to the new pension fund or a vested benefits account.
Misunderstanding the final settlement for employees subject to withholding tax (Quellensteuer).
A note for Hungarian nationals: withdrawing second pillar (BVG) savings in cash when relocating to an EU/EFTA member state — including Hungary — is heavily restricted; as a rule, only the portion above the mandatory minimum can be paid out in cash, while the mandatory portion must be transferred to a vested benefits account. This should be carefully considered well in advance when planning a return to Hungary.
Sources
ch.ch – Swiss official information portal — https://www.ch.ch/en/
ch.ch – Working in Switzerland — https://www.ch.ch/en/work/
arbeit.swiss – Unemployment insurance and job placement — https://www.arbeit.swiss/
Code of Obligations (Obligationenrecht / OR), Labour Act (Arbeitsgesetz / ArG) — in the official edition of the Federal Legal Collection (Fedlex)
Related Articles
Employment contracts and probationary periods in Switzerland: what to watch out for?
Swiss residence permits in 2026: L, B and C categories for Hungarian nationals
Permit C in special situations: what do you need to know as a Hungarian?
The first pillar in Switzerland: how to avoid the typical mistakes?
In Brief
In Switzerland, the length of the notice period depends on years of service (1–3 months) and always expires on the last day of a calendar month — even a single day's delay can push the end date back by a full month. The statutory minimum annual leave is four weeks, overtime comes in two distinct types with different surcharge rules, and severance pay is only available in a narrow set of circumstances — typically after 20+ years of service and at age 50+. For Hungarian employees, it is especially important to register with the RAV (regional employment centre) immediately after receiving notice, and to address the handling of the second pillar (BVG/LPP) if returning to Hungary.
Key Takeaways
- When calculating the notice period, always account for the end-of-month expiry: the date the notice is received — not sent — is decisive, which is why using registered mail and tracking the delivery date is essential.
- During illness, accident, pregnancy, or military service, an employer's notice of termination may be invalid or the notice period may be suspended — these protected periods (Sperrfrist) must always be verified.
- In addition to the employment contract, the applicable collective labour agreement (GAV) and internal staff regulations (Personalreglement) must also be reviewed, as the actual notice period, leave entitlement, and overtime surcharge conditions are often set out there.
- It is advisable to keep an up-to-date record of all overtime worked, as it is the employee's responsibility to prove overtime hours if a claim arises — any overtime not claimed is forfeited at the end of the employment relationship.
- Hungarian employees holding a B permit must register with the regional employment centre (RAV) and unemployment insurance (ALV) immediately after receiving notice, as prolonged unemployment can jeopardise their residence permit.
- When planning a return to Hungary, the fate of the second pillar (BVG) must be clarified in good time: the mandatory portion cannot be withdrawn as cash when moving to an EU/EFTA country — it can only be transferred to a vested benefits account (Freizügigkeitskonto) — so this step must be prepared before the employment relationship ends.
Frequently Asked Questions
What is the statutory notice period in Switzerland?
Under the Code of Obligations (OR 335c), the statutory notice period is 7 days during the probationary period, 1 month in the first year of service, 2 months in years 2–9, and 3 months from year 10 onwards. In all cases, the notice period expires on the last day of a calendar month, unless the employment contract or collective labour agreement (GAV) provides otherwise. The contract may extend these periods, but after the first year the notice period may not be shorter than one month and must be the same length for both parties.
Is written notice of termination required in Switzerland?
Under Swiss law, notice of termination can in principle be given verbally — written form is not mandatory. In practice, however, it is always advisable to submit notice by registered mail in a verifiable manner, since the date the notice is received — not the date it is sent — is the decisive factor. A delay in delivery can push the end of the employment relationship back by an entire month.
When can an employer not validly give notice in Switzerland?
An employer cannot validly give notice during certain protected periods (Sperrfrist): these include illness, accident, pregnancy and the post-natal period, as well as military or civilian service. If notice is given during such a period, it may be invalid or the notice period may be suspended. In the case of illness, the length of the protection depends on the number of years of service.
How much paid annual leave are employees entitled to in Switzerland?
The statutory minimum is four weeks (20 working days) of paid annual leave per year; employees under the age of twenty are entitled to five weeks. Many employment contracts and collective labour agreements (GAV) provide more than this minimum. Leave must be granted within the calendar year, at least two consecutive weeks must be provided each year, and leave may not be converted into a cash payment during the employment relationship.
How is overtime calculated in Switzerland, and does it attract a surcharge?
Two distinct concepts must be distinguished in Switzerland: Überstunden refers to hours worked between the contractual working time and the statutory maximum, and attracts a 25% surcharge unless the contract expressly provides otherwise in writing. Überzeit refers to hours worked beyond the statutory weekly maximum (generally 45 or 50 hours depending on the sector), which also attracts a 25% surcharge, but the option to compensate it with time off in lieu is more restricted. It is advisable to keep overtime records up to date, as proving overtime is the employee's responsibility.
Is severance pay due when someone resigns or is dismissed in Switzerland?
Under Swiss law, severance pay (Abgangsentschädigung) is not a general entitlement and is not due at the end of most employment relationships. Statutory severance pay (OR 339b) applies only in a narrow set of circumstances: typically for employees who are at least 50 years old and have worked for the same employer for at least 20 years, and even then the benefits from the second pillar (BVG) often substitute for it. However, a detailed final pay settlement (Schlussabrechnung) is always due at the end of the employment relationship and should be checked item by item.
What must a Hungarian national in Switzerland do after receiving notice to avoid losing their residence permit?
Holders of a B permit (Ausländerausweis B) may have their residence permit affected by prolonged unemployment. After receiving notice, it is advisable to register immediately with the regional employment centre (RAV / ORP) and with unemployment insurance (Arbeitslosenversicherung / ALV). If a return to Hungary is being planned, special attention must be paid to the handling of the second pillar (BVG): when moving to an EU/EFTA member state, the mandatory portion cannot be withdrawn as cash — it can only be transferred to a vested benefits account (Freizügigkeitskonto).
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