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Mutual Severance Agreement Template for Switzerland

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Key Requirements PROMPT example:

Mutual Severance Agreement

"I need a Mutual Severance Agreement under Swiss law for a departing Chief Technology Officer, including stock option provisions and ongoing consultancy arrangements, with the termination effective March 31, 2025."

Document background
The Mutual Severance Agreement is a crucial document used in Switzerland when an employer and employee mutually agree to end their employment relationship. It serves as a comprehensive settlement agreement that protects both parties' interests while ensuring compliance with Swiss employment law. This document is typically used when parties wish to achieve an amicable separation and clearly document all aspects of the termination, including financial settlements, continuing obligations, and releases of claims. The agreement is particularly important in scenarios involving senior executives, sensitive departures, or complex compensation arrangements. It must comply with Swiss legal requirements, particularly the Swiss Code of Obligations, and address specific Swiss considerations regarding social security, pension funds, and tax implications. The document helps prevent future disputes by clearly outlining all termination terms and mutual obligations.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Brief context of the employment relationship and mutual decision to terminate

3. Definitions: Key terms used throughout the agreement

4. Termination Date: Specific date of employment termination and final working day

5. Financial Settlement: Details of severance payment, calculation method, and payment timing

6. Tax and Social Security: Treatment of statutory deductions and social security contributions

7. Company Property: Requirements for return of company property and documentation

8. Confidentiality: Ongoing obligations regarding confidential information

9. Release of Claims: Mutual release of claims and waiver of rights

10. References: Agreement on the content and handling of employment references

11. Post-Termination Obligations: Ongoing duties after employment ends

12. Final Provisions: Governing law, jurisdiction, and entire agreement clause

13. Execution: Signature blocks and date of agreement

Optional Sections

1. Garden Leave: Terms of any garden leave period, used when employee is placed on paid leave before termination

2. Non-Competition: Post-employment competition restrictions, only if previously agreed in employment contract

3. Equity and Benefits: Treatment of stock options, shares, or other benefits, for senior employees with such arrangements

4. Outplacement Support: Details of any career transition services offered

5. Board Resignations: Required for employees who held director positions

6. Insurance Continuation: Details of any post-employment insurance coverage

7. Public Announcements: Agreement on external and internal communications about the departure, typically for senior positions

8. Intellectual Property: Specific IP provisions where employee was involved in creative or innovative work

Suggested Schedules

1. Schedule 1 - Calculation of Severance Payment: Detailed breakdown of severance payment calculation

2. Schedule 2 - Outstanding Benefits: List of accrued benefits and their treatment

3. Schedule 3 - Company Property Inventory: List of items to be returned to the employer

4. Schedule 4 - Reference Letter: Agreed form of employment reference

5. Schedule 5 - Settlement Summary: Summary of all financial elements of the settlement

6. Appendix A - Release Declaration: Formal waiver and release of claims document

7. Appendix B - Confidentiality Obligations: Detailed listing of confidentiality requirements and restricted information

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



































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Relevant Industries

Financial Services

Manufacturing

Technology

Pharmaceuticals

Professional Services

Retail

Healthcare

Education

Construction

Telecommunications

Insurance

Real Estate

Hospitality

Energy

Transportation

Relevant Teams

Human Resources

Legal

Finance

Executive Leadership

Operations

Administration

Compliance

Risk Management

Corporate Governance

Compensation & Benefits

Relevant Roles

Chief Executive Officer

Managing Director

Department Head

Senior Manager

Project Manager

Professional Staff

Technical Specialist

Sales Executive

Administrative Officer

Research Scientist

Financial Controller

Operations Manager

Regional Director

Account Manager

Software Engineer

HR Manager

Legal Counsel

Marketing Director

Production Supervisor

Business Analyst

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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