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How to write a Termination Contract

A Swiss Freelancer's Guide to Employment Termination

Termination of an employment contract can feel like venturing into a labyrinth, especially for Swiss freelancers balancing multiple clients and projects. Whether you're initiating the end of a professional relationship or facing an unexpected dismissal, understanding Swiss employment law is crucial. This guide demystifies the process, offering clear insights and practical advice to help you navigate contract termination confidently.

Understanding the Swiss Employment Landscape

Switzerland boasts a robust legal framework governing employment relationships, blending federal laws with cantonal regulations. As a freelancer, you may oscillate between roles—sometimes as an employee, other times as an employer. Grasping the basics of Swiss employment contracts is essential for managing terminations effectively.

Types of Employment Contracts

Employment contracts in Switzerland typically fall into two categories:

❶ . Fixed-term contracts: These agreements have a predetermined end date. They conclude automatically without the need for formal termination unless otherwise specified.
❷ . Open-ended contracts: These continue indefinitely until either party decides to terminate the agreement.

Freelancers often engage in:

  • Project-based contracts: Centered around the completion of specific projects.
  • Service agreements: Ongoing contracts without a fixed end date, providing services as needed.

Understanding the type of contract you have is vital, as it influences your rights and obligations during termination.

The Legal Framework

The Swiss Code of Obligations governs employment relationships, outlining the duties and rights of both employers and employees. Key points include:

  • Freedom of contract: Parties can agree on terms, provided they don't contravene mandatory legal provisions.
  • Protection against unfair dismissal: Laws safeguard employees from dismissals that violate principles of good faith.

For detailed legal information, consult the Swiss Commercial Register.

Reasons for Termination

Terminations can be categorized based on who initiates them and why:

⤃ Voluntary Termination ⤂
Initiated by the employee or freelancer, common reasons include:

Career advancement

Pursuing better opportunities or projects.

Personal reasons

Health issues, family matters, or lifestyle changes.

Relocation

Moving to a different city or country.

↪ Maintaining professionalism during voluntary termination preserves relationships and reputation.

⤃ Involuntary Termination ⤂
Initiated by the employer or client due to:

Organizational changes

Restructuring or downsizing.

Performance issues

Consistent underperformance or failure to meet contractual obligations.

Misconduct

Breach of contract terms or professional misconduct.

↪ Understanding the reasons helps in addressing any underlying issues and preparing for future engagements.

Essential Elements

Include the following in your termination letter:

① Your information

Full name, address, email, and phone number.

② Employer's information

Name and address of the employer or client.

③ Date

The date you're writing the letter.

④ Subject line

Clearly state the purpose (e.g., "Termination of Employment Contract").

⑤ Salutation

Use a formal greeting.

⑥ Body

⑦ Statement of termination

Clearly state your intent to terminate the contract.

⑧ Effective date

Specify your last working day, considering the notice period.

⑨ Acknowledgment

Express gratitude if appropriate.

⑩ Closing

A professional sign-off and your signature.

Formatting Tips

  • Keep it concise: Limit to one page.
  • Professional tone: Maintain formality throughout.
  • Proofread: Check for errors to ensure clarity.

Common Pitfalls to Avoid

  • Ambiguity: Be clear to prevent legal disputes.
  • Emotional language: Stay objective and professional.
  • Unnecessary details: You're not obligated to provide reasons unless required by contract.

For insights on professional communication, read Creating Professional Invoices with Proper Billing Addresses.

Sample Termination Letter

Here's a template you can customize:


**Your Name**  
**Your Address**  
**Postal Code and City**  
**Email Address**  
**Phone Number**

**Employer's Name**  
**Employer's Address**  
**Postal Code and City**

**Date**

**Subject: Termination of Employment Contract**

**Dear [Employer's Name],**

I am writing to formally notify you of the termination of my employment contract dated [start date of contract]. This letter serves as the required notice of [notice period, e.g., one month], in accordance with our agreement and Swiss employment law. My last working day will be [effective date].

Please confirm receipt of this letter and inform me of any necessary steps to ensure a smooth transition.

Thank you for the opportunities and experiences during my time with [Company Name]. I wish you continued success.

Sincerely,  
[Your Signature]  
[Your Typed Name]

For more resources, visit our Tutorials page.

Legal Considerations for Termination

Understanding legal obligations ensures a hassle-free termination process.

Notice Periods

Notice periods in Switzerland typically depend on the duration of employment:

  • During probation: 7 days
  • First year: 1 month
  • 2nd to 9th year: 2 months
  • 10th year onwards: 3 months

These periods usually end on the last day of a month unless otherwise agreed. Always refer to your contract for specific terms.

Protected Periods

Certain periods offer protection from termination:

  • Illness or accident: Employees have protection based on length of service.
  • Pregnancy and maternity: Protection during pregnancy and 16 weeks post-birth.
  • Military or civil service: Protection during compulsory service.

Terminating during these times can be unlawful. Learn more about Unemployment Benefits for Freelancers in Switzerland.

Unfair Dismissal

Dismissals considered abusive under Swiss law include those based on:

  • Personal attributes (race, gender, religion)
  • Exercise of constitutional rights
  • Filing of legitimate claims against the employer

If faced with unfair dismissal, legal remedies are available.

Managing the Termination Process

A smooth termination preserves professional relationships and sets the stage for future opportunities.

Communication

  • Personal meeting: Inform your employer or client in person if possible.
  • Professionalism: Maintain a respectful tone, regardless of circumstances.
  • Transition plan: Offer assistance in handing over responsibilities.

Finalizing Details

  • Settle payments: Ensure all invoices are issued and payments received. Use Magic Heidi's invoicing tool for efficiency.
  • Expense claims: Submit outstanding expenses promptly. Our guide on Simplifying Expense Tracking can help.
  • Return property: Return any company assets in your possession.

Leveraging Tools for Success

Streamlining administrative tasks allows you to focus on your core competencies.

FAQ

Conclusion

Terminating an employment contract is a significant step in your freelance journey. By understanding legal requirements and approaching the process professionally, you safeguard your reputation and lay the groundwork for future success.

Equip yourself with the right tools—like Magic Heidi—to manage your business efficiently. Remember, every ending is an opportunity for a new beginning.


Ready to streamline your freelance business? Discover how Magic Heidi can make your administrative tasks a breeze.