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Mutual Termination Of Employment Agreement Template for Switzerland

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Key Requirements PROMPT example:

Mutual Termination Of Employment Agreement

"I need a Mutual Termination of Employment Agreement for a senior software developer in our Zurich office who has significant access to trade secrets and ongoing projects, with the termination date set for March 15, 2025; the agreement should include strong IP protection and knowledge transfer provisions."

Document background
The Mutual Termination of Employment Agreement is utilized when both employer and employee in Switzerland agree to end their employment relationship by mutual consent, outside of standard unilateral termination procedures. This document is particularly relevant when parties wish to negotiate specific terms of separation that may differ from standard notice period arrangements under Swiss law. It typically includes provisions for financial settlements, benefit continuations, confidentiality obligations, and release of claims. The agreement must comply with Swiss employment law, particularly the Swiss Code of Obligations, and can be customized to address specific circumstances such as senior executive departures, intellectual property matters, or complex compensation arrangements. This type of agreement offers both parties greater flexibility than a standard termination while providing legal certainty and protection for all involved.
Suggested Sections

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

2. Background: Brief description of the employment relationship, including start date and current position, and mutual decision to terminate

3. Definitions: Definitions of key terms used throughout the agreement

4. Termination Date: Specific date when the employment relationship will end

5. Final Salary and Benefits: Details of final salary payment, pro-rated bonuses, and treatment of benefits

6. Holiday Entitlement: Settlement of any accrued but unused vacation days

7. Company Property: Requirements and timeline for returning company property

8. Final Settlement: Comprehensive breakdown of all final payments and settlements

9. Release of Claims: Mutual release of claims between parties

10. Confidentiality: Ongoing obligations regarding confidential information

11. Reference and Communications: Agreement on employment references and internal/external communications regarding the departure

12. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction

13. Entire Agreement: Standard clause confirming this agreement supersedes previous agreements regarding termination

Optional Sections

1. Garden Leave: Used when employee is to remain employed but not work during notice period

2. Non-Competition: Include when enforcing post-employment competition restrictions (must comply with Swiss CO Art. 340)

3. Equity/Share Options: Required when employee has equity or share options that need to be addressed

4. Pension Arrangements: Detailed pension provisions for senior employees or complex pension situations

5. International Tax Provisions: Include for cross-border employment situations

6. Intellectual Property: Necessary for roles involving significant IP creation or ownership

7. Outplacement Support: When outplacement services are being offered as part of the package

8. Board Resignations: Required when employee holds director or board positions

9. Ongoing Cooperation: Used when employee's assistance may be needed for transition or future matters

Suggested Schedules

1. Schedule 1 - Calculation of Final Payment: Detailed breakdown of all payment components including salary, bonus, benefits, and deductions

2. Schedule 2 - Company Property List: Itemized list of company property to be returned

3. Schedule 3 - Benefits Summary: Detailed summary of treatment of various benefits and insurance coverages

4. Appendix A - Form of Release: Standard form for final release of claims

5. Appendix B - Reference Letter: Agreed form of employment reference letter

6. Appendix C - Communication Plan: Template for internal and external announcements regarding the departure

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

Healthcare

Retail

Professional Services

Construction

Education

Hospitality

Telecommunications

Pharmaceutical

Insurance

Real Estate

Energy

Transportation

Media and Entertainment

Relevant Teams

Human Resources

Legal

Finance

Executive Leadership

Operations

Administration

Compliance

Payroll

Employee Relations

Talent Management

Relevant Roles

Chief Executive Officer

Managing Director

Department Head

Senior Manager

Project Manager

Software Developer

Financial Analyst

Sales Representative

Administrative Assistant

Human Resources Manager

Operations Manager

Research Scientist

Marketing Specialist

Technical Support Engineer

Account Manager

Production Supervisor

Legal Counsel

Business Analyst

Customer Service Representative

Executive Assistant

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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