Document background
The Employment Compromise Agreement is a critical document used in Switzerland when an employer and employee agree to terminate their employment relationship through mutual consent. This agreement type is particularly relevant in situations involving senior executives, redundancies, or when parties wish to avoid potential employment disputes. The document, governed by Swiss law, particularly the Swiss Code of Obligations, provides a comprehensive framework for addressing all aspects of the employment termination, including financial settlements, continuing obligations, and mutual releases. It serves as a full and final settlement of all claims arising from the employment relationship while ensuring compliance with Swiss employment law requirements. The agreement typically includes detailed provisions on compensation, benefits, confidentiality, non-competition, and reference letters (Arbeitszeugnis), tailored to meet both parties' needs while maintaining legal compliance.
