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This document is essential when resolving employment termination disputes in Switzerland where an employee claims unfair dismissal. An Unfair Dismissal Settlement Agreement is used to document the mutually agreed terms of settlement, providing a legally binding resolution that prevents future litigation. It becomes relevant when there are grounds to challenge a dismissal under Swiss law, such as discriminatory termination, retaliatory dismissal, or termination violating good faith principles under the Swiss Code of Obligations. The agreement typically includes financial compensation, reference provisions, confidentiality obligations, and waivers of claims (subject to Article 341 CO restrictions). It's crucial to note that under Swiss law, certain mandatory claims cannot be waived during employment and for one month after its end, making the timing and content of the agreement particularly important.

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

2. Background: Brief description of the employment relationship, circumstances of termination, and the dispute leading to this settlement

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

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

5. Settlement Payment: Details of the settlement sum, payment method, timing, and tax treatment

6. Waiver of Claims: Employee's waiver of claims against the employer, subject to Article 341 CO restrictions

7. Company Property: Provisions regarding the return of company property and documentation

8. Confidentiality: Obligations regarding confidentiality of the settlement terms and company information

9. Reference: Agreement on the content and format of employment references as required by Swiss law

10. Tax and Social Security: Provisions regarding tax and social security implications of the settlement

11. Entire Agreement: Confirmation that this agreement represents the entire understanding between parties

12. Governing Law: Confirmation of Swiss law as governing law and jurisdiction

13. Execution: Signature blocks and execution requirements