Summary Dismissal in Switzerland: Permitted Only in Exceptional Cases
Jurilo by Lawise.ai:
Summary dismissal is one of the most severe measures under Swiss employment law and often entails significant financial risks if applied incorrectly.
What Does “Summary Dismissal” Mean?
A summary dismissal terminates the employment relationship with immediate effect, i.e. without observing any notice period. It is only permissible if there is a serious reason—meaning conduct or circumstances that make the continuation of the employment relationship unacceptable (Art. 337 CO).
In many cases, an ordinary termination would be permissible—but a summary dismissal goes too far.
👉 Notice periods in Switzerland
Legal Consequences for Both Parties
For the Employer
If no serious reason exists, the employer owes the employee:
- Full compensation for damages, and
- An additional compensation of up to six months’ salary (Art. 337c CO).
For the Employee
If the employee terminates the contract with immediate effect without a serious reason, they owe the employer:
- Compensation of up to one quarter of a monthly salary, and
- Any additional damages (Art. 337d CO).
Valid Reasons (with Examples)
A summary dismissal is only permissible in cases of serious misconduct that destroys the relationship of trust.
Examples:
- Theft
Misappropriation of company property, such as cash or materials. - Breach of trust
Disclosure of business secrets, intentional false statements (e.g. expense fraud or falsified working hours). - Violence or threats
Physical attacks or serious threats against colleagues or supervisors. - Refusal to work
Repeated, unjustified refusal to perform work or follow instructions. - Unexcused absence
Failure to appear at work for several days without notification or valid reason.
Important:
The reason must be so serious that continuation of the employment relationship is no longer reasonable for the terminating party (Art. 337 CO).
Invalid Reasons
Not every mistake justifies a summary dismissal. Common invalid reasons and employer errors include:
- Minor incidents
Small infractions such as a single late arrival or an impolite tone are insufficient. - No prior warning
For less serious breaches, a warning is usually required before a summary dismissal. - Delayed reaction
The dismissal must be issued immediately after the incident becomes known. Delays may render it invalid. - Unclear evidence
Without clear proof (e.g. in cases of suspected theft), summary dismissal is risky. - Personal antipathy or conflicts
Team tensions or differences of opinion are not sufficient grounds. - Dismissal out of retaliation or to prevent claims
Such dismissals are considered abusive (Art. 336 CO) and may trigger compensation claims.
Conclusion:
A summary dismissal is only permissible in cases of serious, clearly provable misconduct—otherwise, legal and financial consequences may follow.
Consequences of an Unjustified Summary Dismissal
If a summary dismissal is issued without a serious reason, it is considered unjustified, with clear financial consequences for the employer:
1. Salary Continuation (Damages)
The employee is entitled to the salary they would have received if the employment had been terminated ordinarily (Art. 337c para. 1 CO).
The following will be deducted:
- Income earned from new employment
- Income intentionally not earned
- Expenses saved as a result of the termination
2. Additional Compensation (Penalty Payment)
The court may additionally award compensation of up to six months’ salary (Art. 337c para. 3 CO).
This compensation:
- Is independent of actual financial damage
- Functions as a penalty against the employer
- Depends on factors such as:
- Duration of employment
- Severity of the personal rights violation
- Economic situation of the employer
Important:
Both claims—salary continuation and compensation—must be asserted in court.
The compensation is also subject to seizure.
Conclusion:
An unjustified summary dismissal can be very costly for employers.
👉 Jurilo assesses summary dismissals realistically under Swiss employment law.
FAQ on Summary Dismissal
Is a warning required?
Yes. In less serious cases, a prior warning is usually required before summary dismissal.
Who bears the burden of proof?
The terminating party—usually the employer—must prove the serious reason.
Is summary dismissal permissible during illness?
Yes. Blocking periods apply only to ordinary terminations, not to summary dismissals.
Does the blocking period under Art. 336c CO apply to summary dismissal?
No. Blocking periods do not apply to summary dismissal.
When does a serious reason exist?
When continuation of the employment relationship is no longer reasonable—e.g. in cases of theft or violence.
How quickly must a summary dismissal be issued?
Immediately—usually within a few days after becoming aware of the incident.
What are the consequences of an unjustified summary dismissal?
Salary continuation plus possible compensation of up to six months’ salary.
Does a summary dismissal have to be in writing?
Only if requested by the other party—otherwise, an oral dismissal is valid (Art. 337 para. 1 CO).
Can an employee also terminate with immediate effect?
Yes. An employee may also terminate the contract summarily if there is a serious reason.
