A Severance Letter To Employee is a crucial document used in Switzerland when terminating employment relationships through mutual agreement or as part of a unilateral termination process. It serves as the formal written confirmation of the severance terms discussed and agreed upon between the employer and employee. The document must align with Swiss employment law requirements, particularly the Swiss Code of Obligations, and address key aspects such as final payment calculations, benefit arrangements, and post-employment obligations. This letter is typically used in situations involving redundancies, restructuring, mutual separations, or negotiated exits, and must carefully balance the interests of both parties while ensuring compliance with Swiss legal requirements regarding notice periods, social security contributions, and pension fund arrangements. The document's content and structure reflect Switzerland's specific employment law framework and business practices.
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1. Letter Header: Company letterhead, date, and employee's contact details
2. Subject Line: Clear indication that this is a severance letter
3. Opening Statement: Reference to previous discussions/meetings regarding termination and confirmation of employment end
4. Termination Details: Confirmation of last working day and any garden leave arrangements
5. Severance Payment: Details of the severance amount, calculation method, and payment timing
6. Final Salary and Benefits: Information about final regular salary, pro-rated bonus if applicable, and treatment of benefits
7. Company Property: Instructions regarding return of company property and timeline
8. Ongoing Obligations: Reference to continuing confidentiality obligations and other post-employment restrictions
9. Full and Final Settlement: Statement that the severance package represents a full and final settlement
10. Tax and Social Security: Statement about tax and social security treatment of the severance payment
11. Acknowledgment: Space for both parties to sign and date the letter
1. Garden Leave Provisions: Include when the employee will be placed on garden leave during the notice period
2. Reference Provision: Include when agreeing to provide employment references
3. Outplacement Support: Include when offering career transition services
4. Non-Compete Provisions: Include when reinforcing or modifying existing non-compete obligations
5. Health Insurance Extension: Include when offering continued health insurance coverage
6. Equity/Stock Options: Include when addressing treatment of outstanding equity or stock options
7. Legal Fees: Include when the company is contributing to employee's legal fees
8. Release of Claims: Include when requesting employee to waive potential legal claims
1. Severance Calculation Schedule: Detailed breakdown of severance payment calculation
2. Benefits Summary: Summary of all benefits and their treatment post-termination
3. Company Property Checklist: List of company items to be returned
4. Social Insurance Certificate: Documentation for unemployment insurance registration
5. Pension Fund Information: Details about pension fund arrangements and options
Relevant legal definitions
Effective Date of Termination
Garden Leave Period
Notice Period
Final Salary
Severance Payment
Pro-Rata Bonus
Company Property
Confidential Information
Gross Misconduct
Full and Final Settlement
Benefits
Pension Fund
Social Security Contributions
Non-Compete Obligations
Surviving Provisions
AHV/AVS (Swiss Old Age and Survivors' Insurance)
BVG/LPP (Swiss Occupational Pension)
Working Day
Vested Rights
Release of Claims
Garden Leave Period
Notice Period
Final Salary
Severance Payment
Pro-Rata Bonus
Company Property
Confidential Information
Gross Misconduct
Full and Final Settlement
Benefits
Pension Fund
Social Security Contributions
Non-Compete Obligations
Surviving Provisions
AHV/AVS (Swiss Old Age and Survivors' Insurance)
BVG/LPP (Swiss Occupational Pension)
Working Day
Vested Rights
Release of Claims
Clauses
Termination
Severance Payment
Final Salary
Bonus Treatment
Benefits Continuation
Pension Arrangements
Social Security
Tax Treatment
Company Property Return
Confidentiality
Non-Competition
Non-Solicitation
Reference Provision
Full and Final Settlement
Release of Claims
Continuing Obligations
Garden Leave
Outplacement Support
Legal Costs
Acknowledgment and Acceptance
Governing Law
Data Protection
Amendment
Severability
Severance Payment
Final Salary
Bonus Treatment
Benefits Continuation
Pension Arrangements
Social Security
Tax Treatment
Company Property Return
Confidentiality
Non-Competition
Non-Solicitation
Reference Provision
Full and Final Settlement
Release of Claims
Continuing Obligations
Garden Leave
Outplacement Support
Legal Costs
Acknowledgment and Acceptance
Governing Law
Data Protection
Amendment
Severability
Relevant Industries
Banking & Financial Services
Insurance
Manufacturing
Technology
Pharmaceuticals
Consumer Goods
Professional Services
Healthcare
Education
Telecommunications
Real Estate
Construction
Retail
Hospitality
Energy
Transportation & Logistics
Relevant Teams
Human Resources
Legal
Finance
Executive Management
Operations
Administration
Compliance
Payroll
Relevant Roles
CEO
Managing Director
Head of Human Resources
HR Director
Legal Counsel
Employment Lawyer
HR Manager
HR Business Partner
Compensation & Benefits Manager
Personnel Administrator
Chief Financial Officer
Finance Director
Operations Director
Department Head
Line Manager
Office Manager
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