Document background
The Termination Settlement Agreement is a crucial document used in Switzerland when an employer and employee agree to end their employment relationship by mutual consent, rather than through unilateral termination. This document is particularly important in situations involving senior executives, sensitive departures, or where parties wish to avoid potential disputes. The agreement must comply with Swiss employment law, particularly the Swiss Code of Obligations, and typically includes provisions for final payments, treatment of benefits, confidentiality obligations, and mutual releases. It serves to provide legal certainty for both parties and helps prevent future disputes by clearly documenting all aspects of the separation. The document is especially relevant when additional settlement payments are being made or when specific post-employment obligations need to be documented.
