Termination of employment
is ending the employment relationship — by dismissal, resignation, expiry or agreement. Systems differ radically: grounds-and-procedure regimes (most of Europe) versus notice-based freedom (Switzerland’s at-will-like model with abuse limits) versus registered processes (Gulf platforms). Costs and risk follow the regime.
The four exit routes and their economics
- Dismissal: needs lawful grounds and process in most of Europe (hearings, works-council input, social selection); notice-based in Switzerland with abusive-dismissal damages as the backstop.
- Resignation: employee-initiated, notice applies; forced resignations are read as dismissals.
- Expiry: fixed-term ends by calendar — with conversion and premium rules per country.
- Mutual agreement: settlement deals buying certainty — often the cheapest total-cost exit in litigation-prone systems; formal regimes exist (France’s rupture conventionnelle).
Cost the exit before choosing the route: notice + severance + litigation risk + timeline differ per country — see notice period and severance pay.
FAQ
Can we terminate quickly if we pay enough?
Mostly yes via mutual agreements — money for signatures — except where protected categories or approval requirements (pregnancy, works-council members, some sick leave) block even paid exits temporarily. Unilateral instant dismissal without grounds remains unlawful regardless of payment in grounds-based systems.
What makes a dismissal ‘unfair’ or ‘abusive’?
Missing grounds, missing process, or prohibited motives (discrimination, retaliation, protected status). Remedies range from capped damages (Switzerland: up to six months’ pay for abusive dismissal) to reinstatement rights (Germany, France in cases). Documentation discipline before the decision is the cheapest defence.