Document background
The Employee Severance Agreement is a crucial document used in Switzerland when formally concluding an employment relationship through mutual agreement or unilateral termination. It serves to document all aspects of the employment separation, including financial settlements, ongoing obligations, and release of claims, while ensuring compliance with Swiss employment law. This agreement is particularly important as it provides clarity and legal certainty for both parties, helps prevent future disputes, and addresses mandatory requirements under Swiss law regarding social security, pension funds, and employee protection. The document is commonly used during restructuring, voluntary departures, or when negotiating enhanced separation terms, and must carefully balance the employer's interests with the strong employee protections characteristic of Swiss employment law.
