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Employment Separation Agreement

Employment Separation Agreement Template for Switzerland

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Key Requirements PROMPT example:

Employment Separation Agreement

"I need a Swiss Employment Separation Agreement for a senior software developer in Zurich who will be leaving on March 15, 2025, including a 6-month non-compete clause and provisions for unvested stock options."

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Document background
The Employment Separation Agreement is a crucial document used in Switzerland when formally ending an employment relationship by mutual agreement. It serves as a comprehensive record of the separation terms, protecting both employer and employee interests while ensuring compliance with Swiss federal and cantonal laws. The agreement is particularly useful in situations involving amicable separations, redundancies, or negotiated exits, providing clarity on financial settlements, continuing obligations, and post-employment arrangements. It must adhere to strict Swiss legal requirements, including mandatory provisions under the Swiss Code of Obligations regarding employment termination, social security requirements, and pension fund regulations. The document typically includes provisions for the legally required employment reference (Arbeitszeugnis) and addresses specific Swiss employment law considerations such as garden leave (Freistellung) and non-compete restrictions.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names, addresses, and any relevant registration numbers

2. Background: Brief history of employment relationship, including start date, position, and context for separation

3. Definitions: Key terms used throughout the agreement, including Swiss-specific legal terminology in multiple languages where relevant

4. Termination Date: Specific date of employment termination and last working day if different

5. Final Salary and Benefits: Details of final salary payment, including pro-rated 13th month salary if applicable, vacation pay, and other statutory entitlements

6. Social Security and Pension: Arrangements for social security contributions and pension fund transfers as per Swiss law

7. Company Property: Requirements for return of company property and timeline

8. Confidentiality Obligations: Ongoing obligations regarding confidential information and trade secrets

9. Full and Final Settlement: Mutual release of claims, subject to Swiss law restrictions on waiver of certain rights

10. References: Agreement on the content and format of employment references (Arbeitszeugnis) as required by Swiss law

11. Governing Law and Jurisdiction: Confirmation of Swiss law application and competent courts

Optional Sections

1. Severance Payment: Terms of any voluntary severance payment beyond statutory requirements - include if severance is being offered

2. Garden Leave: Terms of any garden leave period - include if employee will be placed on garden leave

3. Post-Employment Restrictions: Non-compete and non-solicitation clauses - include if required and ensure compliance with Swiss competition law restrictions

4. Ongoing Cooperation: Terms for employee assistance in transition or future matters - include if ongoing cooperation is needed

5. Legal Fees: Agreement on payment of legal fees for review - include if employer is covering employee's legal costs

6. Outplacement Support: Details of any career transition services - include if outplacement support is offered

7. Insurance Continuation: Arrangements for continued insurance coverage - include if applicable

8. Stock Options/Equity: Treatment of outstanding equity compensation - include if employee has stock options or similar arrangements

Suggested Schedules

1. Schedule 1 - Financial Statement: Detailed breakdown of all final payments including salary, benefits, and deductions

2. Schedule 2 - Company Property List: Itemized list of company property to be returned

3. Schedule 3 - Reference Letter: Agreed form of employment reference (Arbeitszeugnis)

4. Appendix A - Benefits Summary: Summary of treatment of various benefits and entitlements

5. Appendix B - Pension Certificate: Details of pension fund arrangements and transfer instructions

6. Appendix C - Exit Checklist: Checklist of all actions required for completion of separation process

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Company
Employee
Effective Date
Termination Date
Last Working Day
Garden Leave Period
Arbeitszeugnis
Freistellung
Confidential Information
Intellectual Property
Company Property
Final Settlement
Notice Period
Severance Payment
Outstanding Remuneration
13th Month Salary
Social Security Contributions
Pension Fund
BVG/LPP
AHV/AVS
Non-Compete Obligations
Non-Solicitation Obligations
Trade Secrets
Governing Law
Works Council
Outplacement Services
Release of Claims
Professional Reference
Variable Compensation
Bonus
Stock Options
Benefits
Statutory Entitlements
Legal Representatives
Parties
Affiliates
Group Companies
Cause
Material Breach
Restricted Period
Territory
Business Day
Canton
Competitive Activity
Protected Customers
Protected Employees
Clauses
Parties
Recitals
Definitions
Termination
Final Salary Payment
Severance
Benefits Continuation
Pension Arrangements
Social Security
Company Property Return
Confidentiality
Data Protection
Non-Competition
Non-Solicitation
Intellectual Property
Employment Reference
Release of Claims
Full and Final Settlement
Tax Obligations
Cooperation
Garden Leave
Legal Fees
Outplacement Support
Insurance
Stock Options
Governing Law
Jurisdiction
Entire Agreement
Severability
Amendment
Waiver
Notices
Third Party Rights
Counterparts
Assignment
Force Majeure
Costs
Language
Interpretation
Survival
Dispute Resolution
Relevant Industries

Financial Services

Manufacturing

Technology

Healthcare

Retail

Professional Services

Education

Telecommunications

Pharmaceutical

Construction

Hospitality

Insurance

Banking

Real Estate

Transportation

Energy

Media

Consumer Goods

Agriculture

Non-Profit

Relevant Teams

Human Resources

Legal

Finance

Executive Leadership

Operations

Administration

Compliance

Payroll

Employee Relations

Risk Management

Relevant Roles

Chief Executive Officer

Managing Director

Department Head

Senior Manager

Project Manager

Software Developer

Financial Analyst

Sales Representative

Administrative Assistant

Human Resources Manager

Operations Manager

Research Scientist

Marketing Specialist

Account Manager

Technical Support Specialist

Product Manager

Legal Counsel

Business Analyst

Customer Service Representative

Production Supervisor

Industries
Swiss Code of Obligations (OR/CO): Primary legislation governing employment contracts and termination (Articles 319-355). Includes provisions on notice periods, termination conditions, and post-contractual obligations.
Federal Act on Employment in Trade and Industry (Employment Act/ArG): Covers employee protection, working conditions, and health and safety obligations that need to be addressed in separation agreements.
Federal Act on Data Protection (FADP): Regulates the handling of employee personal data during and after employment, including data retention and deletion requirements.
Federal Act on Old Age and Survivors' Insurance (AHVG): Governs social security implications of employment termination, including contribution obligations and benefit considerations.
Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans (BVG): Addresses pension fund matters in employment termination, including transfer of pension benefits.
Federal Direct Tax Act (DBG): Relevant for tax implications of separation payments, severance packages, and other financial settlements.
Cantonal Employment Laws: Various canton-specific regulations that may affect employment termination, particularly regarding public holidays, special leave, and local employment standards.
Federal Act on Gender Equality (GEA): Ensures non-discriminatory treatment in employment termination and separation terms based on gender.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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