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A Severance Agreement outlines the terms when an employer and employee part ways, spelling out the final payment package and any ongoing obligations. In Swiss workplaces, these agreements typically cover compensation beyond the standard notice period, along with important details about health insurance continuation, reference letters, and confidentiality requirements.

Under Swiss employment law, these agreements help protect both parties by clearly defining post-employment commitments, including non-compete clauses and the handling of company property. They're particularly common during restructuring, early retirement programs, or when senior executives leave. A properly structured agreement can prevent future disputes and ensure compliance with Swiss labor regulations.

A Severance Agreement becomes essential when ending employment relationships requires more than a standard termination letter. Common scenarios include company restructuring, leadership changes, or situations where an employee has access to sensitive information. Swiss employers often use these agreements during mass layoffs or when offering early retirement packages.

These agreements are particularly valuable when dealing with senior executives, protecting trade secrets, or managing potential workplace disputes. They help prevent future legal challenges by clearly documenting all termination terms upfront. In Switzerland's multilingual business environment, having clear, written terms about post-employment obligations and benefits protects both employer and employee interests.

• Employee Severance Agreement: Basic template focusing on individual terminations with standard compensation and benefits terms
• Mutual Severance Agreement: Used for amicable separations where both parties negotiate terms together
• Employer Separation Agreement: Comprehensive version with enhanced protections for the company
• Outplacement Services Severance Agreement: Includes career transition support and job placement assistance
• Voluntary Severance Agreement: Specifically for employee-initiated departures or early retirement programs

• HR Directors and Legal Teams: Draft and review Severance Agreements, ensure compliance with Swiss labor laws, and manage the negotiation process
• Company Executives: Approve terms, authorize payments, and often negotiate special provisions for senior-level departures
• Departing Employees: Review and sign agreements, often with support from legal counsel or unions, particularly in regulated industries
• Employment Lawyers: Advise both employers and employees, ensure agreements meet cantonal requirements and protect client interests
• Works Councils: Consult on terms during mass layoffs or restructuring, representing collective employee interests under Swiss law

• Employment Details: Gather exact dates, position, salary, and benefits information from HR records
• Financial Terms: Calculate severance pay, outstanding bonuses, vacation days, and any special compensation
• Company Assets: List all equipment, access cards, and confidential materials for return
• Post-Employment Obligations: Define non-compete terms, confidentiality requirements, and reference arrangements
• Language Requirements: Prepare agreement in relevant Swiss national languages (German, French, Italian) as needed
• Internal Approvals: Get sign-off from finance, HR, and department heads before finalizing
• Document Generation: Use our platform to create a legally-sound agreement that includes all mandatory Swiss law elements

• Party Details: Full legal names, addresses, and roles of employer and employee
• Termination Terms: Clear end date, notice period compliance, and reason for separation
• Financial Package: Detailed breakdown of severance pay, benefits, and payment schedule
• Confidentiality Provisions: Scope of trade secrets protection and ongoing obligations
• Non-Compete Clauses: Geographic and time limitations following Swiss competition law
• Release of Claims: Mutual discharge of legal claims in compliance with Swiss labor code
• Data Protection: Treatment of personal information under Swiss privacy laws
• Governing Law: Explicit reference to Swiss law and competent jurisdiction

A Severance Agreement differs significantly from a Contractor Agreement in several key aspects, though both deal with professional relationships. Understanding these differences is crucial for Swiss employers and professionals.

• Employment Status: Severance Agreements end traditional employment relationships with benefits and protections under Swiss labor law, while Contractor Agreements establish independent business relationships without employee benefits
• Timing and Duration: Severance Agreements handle the conclusion of employment with ongoing obligations, whereas Contractor Agreements govern active, ongoing service delivery
• Legal Protections: Severance Agreements must comply with Swiss employment termination laws and social security requirements, while Contractor Agreements follow business contract law
• Financial Structure: Severance packages include termination benefits and outstanding compensation, whereas contractor payments relate to specific deliverables or services
• Tax Implications: Each agreement type triggers different tax obligations under Swiss law, affecting both parties' financial planning