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| Geneva Local Reference INFOrmation
Working in Switzerland - Leave: Sickness, maternity  Share |  Print |  + | Working in Switzerland - Leave: Sickness, maternity |
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| End of Employment
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Fixed-term employment contracts, which are concluded for a period specified by
the two parties (employer and employee), end on the final day of the agreed
period without the need to give notice. If a contract is renewed by tacit
consent after the end of the agreed period, it is deemed to have become an
open-ended contract. Indefinite contracts of this kind may be terminated by
either party provided that the period of notice is observed. The party giving
notice must state the reasons for this decision in writing if so required by the
other party. In addition, employers and employees may agree at any time to end
their employment contract. In this case, the employment contract is deemed to
have been terminated by mutual agreement (by a ‘cancellation contract’).
During the probationary period, either party can terminate the contract at any
time subject to seven days’ notice. Exceptions are possible provided they are
agreed on in a written agreement, a standard contract or a collective labour
agreement, but the probationary period must not exceed three months. After the
probationary period, an employment contract may be terminated with effect from
the end of any month, subject to one month’s notice in the first year of
service, two months’ notice from the second to the ninth years of service
inclusive and three months’ notice thereafter. These periods may be amended by
a written agreement, a standard contract or a collective labour agreement.
Special provisions apply if an employment contract ends on account of
retirement. The normal retirement age is 65 for men and 64 for women. Persons
reaching these ages are entitled to an old age pension (AHV/AVS). The flexible
retirement system allows people to retire one or two years early or to continue
working for an additional one to five years. Early retirement carries the
penalty of a reduced pension for the duration of one’s retirement, whereas a
higher pension is payable in the event of deferred retirement. To qualify for a
full pension, men must have 44 years and women 43 years of contributions.
To supplement the old age pension (1st pillar), an occupational benefit scheme
(2nd pillar) must guarantee those insured an income equivalent to 60% of their
final insured pay. An optional ‘linked’ individual benefit scheme (3rd
pillar) can be obtained by taking out a life insurance policy, additional
insurance policies or through a savings plan.
Text last edited on: 04/2008
Source: European Union
© European Communities, 1995-2008
Reproduction is authorised.
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