Document background
This document is essential when an employer and employee in Switzerland agree to end their employment relationship by mutual consent, rather than through unilateral termination. A Mutual Consent Termination agreement is commonly used when both parties wish to negotiate and document favorable terms for separation, providing legal certainty and protection for all involved. It's particularly valuable in situations involving senior executives, sensitive departures, or complex compensation arrangements. The agreement must comply with Swiss employment law, including the Swiss Code of Obligations and relevant cantonal regulations. It typically includes comprehensive provisions covering financial settlements, benefit arrangements, confidentiality obligations, and post-employment restrictions. This type of agreement helps prevent future disputes by clearly documenting all terms of the separation and ensuring both parties understand their rights and obligations.
