Termination in Switzerland: How Much Money Will I Lose or Gain?
Jurilo by Lawise.ai
A termination – whether by the employer or the employee – has not only emotional but also financial consequences. Many employees ask themselves: How much money do I lose because of the termination? Or: Can I even benefit financially? The answer depends on various factors – such as the notice period, unused vacation, bonus entitlements, or waiting periods imposed by unemployment insurance (RAV). In this article, we show which financial consequences a termination can have – both positive and negative.
1. Salary during the notice period (Switzerland)
During the notice period, you are entitled to your full salary – including all contractually agreed allowances (e.g. 13th month salary, child allowances, flat-rate expense reimbursements).
The notice period pursuant to Art. 335c CO is:
- 1 month in the 1st year of service
- 2 months in the 2nd to 9th year of service
- 3 months from the 10th year of service onwards
(each to the end of a month)
→ The longer the notice period, the more salary you will continue to receive.
2. Payout of vacation and overtime (Switzerland)
Unused vacation must be paid out upon termination of the employment relationship (Art. 329d CO). The same applies to overtime that has not been compensated, provided there is an entitlement (Art. 321c CO).
→ This can result in a one-time salary back payment.
3. Bonus, commission, gratuity
Whether you are still entitled to a bonus or gratuity upon termination depends on the contractual arrangement. Bonuses with a salary character are owed on a pro rata basis; voluntary gratuities are not necessarily owed.
→ Possible gain or loss depending on the structure.
4. Unemployment benefits (RAV) (Switzerland)
After termination, you are entitled to unemployment benefits under certain conditions. The amount is:
- 70–80 % of the insured income
- Maximum of 520 daily benefits (depending on age and contribution period)
→ Caution: In the case of self-inflicted unemployment, a waiting period may apply (no benefits for 1–60 days).
5. Severance pay / social plan
In individual cases (e.g. mass layoffs or long years of service), severance pay or a payment from a social plan may be granted.
→ Possible financial gain in the case of termination for operational reasons.
6. Damages or compensation for unfair termination (Switzerland)
If a termination is deemed unfair, the employer may be required to pay compensation of up to six months’ salary (Art. 336a CO).
→ Possible financial advantage if a claim is successful.
7. Pension fund (BVG) and vested benefits
Upon termination, the accumulated pension fund assets are transferred to a vested benefits account. They are not lost, but are no longer accessible until they are transferred to a new employment relationship or paid out.
→ No direct loss, but restricted access.
8. Daily sickness benefits insurance (Switzerland)
If you become ill during the notice period, the employment relationship may be extended under certain circumstances (blocking period pursuant to Art. 336c CO). In addition, daily sickness benefits insurance (if available) may provide salary replacement.
→ Possible protection against loss of income.
Conclusion
Whether you lose or gain money as a result of a termination depends on many factors: notice period, outstanding entitlements, behavior with the RAV, contractual provisions, and more. A careful review of your rights and obligations is worthwhile – especially before resigning or in the event of termination by the employer.
Many underestimate the costs of a termination – particularly due to waiting periods or lost bonuses.
👉 Unsure how much money you will lose or gain as a result of your termination?
Jurilo analyzes your situation under Swiss employment law – structured & legally sound.
👉 See also: Waiting period at the RAV – reasons & duration
👉 Related: Salary clawback by the employer – when permitted?
👉 Basics: Termination by employer vs. employee – Switzerland
FAQ on termination – How much money do I lose or gain?
Will I still receive salary during the notice period?
Yes. You are entitled to your full salary during the notice period – including allowances and contractual benefits.
What happens to my vacation upon termination?
Unused vacation must be paid out. This can result in an additional salary payment.
Am I entitled to a bonus despite termination?
If the bonus has a salary character (e.g. target bonus), it is owed on a pro rata basis. Voluntary bonuses or gratuities only if contractually promised.
Do I have to expect a waiting period at the RAV?
Only if you resign yourself or are responsible for the termination. In that case, the RAV may impose a waiting period of 1–60 days.
Will I receive severance pay?
Only in exceptional cases – e.g. social plans, mass layoffs, or long years of service. There is no statutory entitlement.
What happens to my pension fund?
Your BVG assets are transferred to a vested benefits account. They remain intact but are temporarily blocked.
Can I claim money in the case of unfair termination?
Yes. You can claim compensation of up to six months’ salary – in addition to regular salary.
What about overtime upon termination?
Uncompensated overtime must be paid out, provided there is an entitlement and it has not been settled by a flat-rate agreement.
How much unemployment benefit will I receive?
Depending on family situation, 70–80 % of the insured income. The exact amount depends on your last salary and contribution period.
Can I financially benefit from a termination?
Yes – for example through bonus payments, vacation compensation, severance pay, or compensation for unfair termination. However, losses (e.g. waiting periods) are also possible. An individual assessment is crucial.
