Federal Act
on the Amendment of the Swiss Civil Code
(Part Five: The Code of Obligations)

¹ The amount of the sev­er­ance al­low­ance may be fixed by writ­ten in­di­vidu­al agree­ment, stand­ard em­ploy­ment con­tract or col­lect­ive em­ploy­ment con­tract but may nev­er be less than two months’ salary for the em­ploy­ee.

² Where the amount of the sev­er­ance al­low­ance is not fixed, the court has dis­cre­tion to de­term­ine it tak­ing due ac­count of all the cir­cum­stances, al­though it must not ex­ceed the equi­val­ent of eight months’ salary for the em­ploy­ee.

³ The sev­er­ance al­low­ance may be re­duced or dis­pensed with if the em­ploy­ee has ter­min­ated the em­ploy­ment re­la­tion­ship without good cause or the em­ploy­er him­self has ter­min­ated it with im­me­di­ate ef­fect for good cause or where the pay­ment of such al­low­ance would in­flict fin­an­cial hard­ship on him.

⁴ The sev­er­ance al­low­ance is due on ter­min­a­tion of the em­ploy­ment re­la­tion­ship, but the due date may be de­ferred by writ­ten in­di­vidu­al agree­ment, stand­ard em­ploy­ment con­tract or col­lect­ive em­ploy­ment con­tract or by court or­der.