In Spain, when your company lets you go, the law stipulates severance pay: 20 or 33 days’ pay for each year worked, depending on the type of dismissal. In Switzerland, this does not apply. If your employer decides to let you go, they can do so without paying you any form of severance pay for the years you have worked there. The Swiss Code of Obligations does not provide for this as a general obligation.
What does exist is the notice period, and that is what protects you financially whilst you look for another job. This period depends on your length of service: one month in the first year, two months between the second and ninth years, and three months from the tenth year onwards. During that time, you continue to be paid as normal. When it ends, provided you meet the requirements, your unemployment benefit begins. But as for a severance payment, there’s no sign of it.
There is one exception – and let it be noted that, although it affects very few people, it does exist: if you are over 50 and have been with the same company for at least 20 years, you may be entitled to a severance payment under Article 339b of the Swiss Code of Obligations. The amount ranges from two to eight months’ salary; it is not automatic, and you must actively claim it. Apart from this case, the system does not provide for anything else.
At the moment, several Swiss companies are announcing staff cuts, and there are people in the group who have been here for years and don’t really know how this all works. If you have any doubts about your situation, check with a trade union or the cantonal employment centre before that day arrives. It often comes without warning.