Mass Dismissal in Switzerland: CO 335d–335k, Employer Duties & Social Plan Rules (2026)

Mass dismissal Switzerland rules are governed by Articles 335d to 335k of the Swiss Code of Obligations (CO), and getting the procedure wrong exposes employers to compensation claims, reputational damage and administrative involvement. Throughout 2026, ongoing restructurings and cost-control programmes have kept collective redundancy processes at the top of employer agendas, making a clear understanding of these duties more valuable than ever. This guide sets out, in practical and sequential terms, what an employer must do, from planning and consultation to cantonal notification and social-plan negotiation. It is written for the people who actually run these processes: HR leaders, in-house lawyers and founders. Every statutory reference is drawn from the consolidated CO text published by the Swiss federal authorities.

Quick summary: What is a “mass dismissal” under Swiss law?

A mass dismissal in Switzerland, more precisely a collective redundancy, arises when an employer terminates a defined number of employment contracts within a short window for reasons that are not related to the individual employees concerned. The concept is defined in Article 335d CO and triggers a distinct set of procedural duties that do not apply to ordinary, individual dismissals. In short, once the statutory threshold is met, the employer must consult employee representatives, notify the cantonal employment office, and, in larger operations, enter into social-plan negotiations.

The distinction matters. An individual termination requires observance of notice periods and protection against abusive dismissal, but it does not trigger the collective consultation and notification machinery. A mass dismissal Switzerland scenario, by contrast, adds layered procedural obligations that must be respected before any notice of termination is validly given. Failure to consult properly can render the dismissals abusive, with financial consequences.

Statutory threshold and timeframe under CO 335d

Article 335d CO defines a collective redundancy by reference to the size of the establishment and the number of dismissals given within a 30-day period, where the terminations are for reasons unrelated to the individual employees. The thresholds scale with the size of the workforce: broadly, the collective regime is triggered in establishments that usually employ at least a certain minimum number of employees, with the required number (or proportion) of dismissals rising as the workforce grows. The common feature across all sizes is the 30-day measurement window and the requirement that the dismissals be for operational, not personal, reasons. Employers should verify the exact bands against the current CO text before relying on them.

Employers and employees in scope

The collective redundancy rules apply to private-sector employment relationships governed by the CO. When counting affected employees, employers must include dismissals notified within the 30-day period that stem from the same operational cause. Terminations attributable to the individual conduct or performance of a specific employee are generally excluded from the count. Because the scope determination drives every subsequent obligation, employers should document precisely how they have counted affected roles and why particular terminations fall inside or outside the collective regime.

Legal framework: CO 335d–335k and related laws

The core statutory framework for any mass dismissal Switzerland process sits in Articles 335d to 335k of the Code of Obligations. These provisions cover the definition, consultation, notification, and, following amendments introduced to strengthen employee protection in larger undertakings, social-plan negotiation. Employers should read the CO articles alongside the general dismissal-protection rules, applicable anti-discrimination obligations (including the Gender Equality Act), and any applicable collective bargaining agreement (CBA), which may impose stricter or additional requirements.

Key articles explained

• Art. 335d CO. Defines what constitutes a collective redundancy by reference to establishment size and the 30-day window.
• Art. 335e CO. Sets out the scope of the collective redundancy provisions and the situations in which they apply, including exceptions.
• Art. 335f CO. Establishes the employer’s duty to consult the employee representatives (or, absent representatives, the employees directly) before deciding on the redundancies, and specifies the information that must be provided in writing.
• Art. 335g CO. Requires the employer to notify the cantonal employment office of the intended collective redundancy and to send a copy of that notification to the employee representatives, and addresses the effect on notice periods.
• Art. 335h CO. Introduces the concept of the social plan as a set of measures intended to avoid or mitigate the consequences of the redundancies for affected employees.
• Art. 335i CO. Sets out the duty to negotiate a social plan in larger undertakings meeting the relevant size and dismissal thresholds.
• Art. 335j CO. Provides for recourse to an arbitral tribunal where the parties cannot reach agreement on a social plan.
• Art. 335k CO. Addresses the position of collective redundancies carried out during composition or insolvency proceedings.

Interaction with cantonal rules and collective bargaining agreements

The federal CO provides the baseline, but practice is shaped locally. Notification is directed to the cantonal employment office, and administrative practice, forms, contact points and expected data, varies between cantons such as Geneva and Zurich. In addition, an applicable CBA may impose consultation procedures, notice enhancements or social-plan standards that go beyond the CO minimum. Employers should therefore verify both the relevant cantonal employment office guidance and any CBA before finalising their timetable. The State Secretariat for Economic Affairs (SECO) coordinates labour-market matters at federal level, while the cantonal offices administer collective redundancy notifications.

Step-by-step compliance checklist for employers

This is the operational heart of any mass dismissal Switzerland project. The obligations are sequential: consultation must precede the decision, notification must follow the consultation, and social-plan negotiation runs alongside where required. Rushing or reordering these steps is the single most common source of litigation risk. The checklist below tracks a project from early planning to final implementation.

Pre-decision phase, planning, metrics and risk assessment

Before the collective procedure formally begins, the employer should assemble the commercial and legal case for the reduction. This phase is internal and confidential, but it must be rigorous because it will be scrutinised later if the process is challenged.

• Assemble the project team. Involve the board or executive committee, HR, finance and legal counsel from the outset.
• Model the workforce impact. Identify affected functions, headcount and the 30-day window during which terminations would fall, to confirm whether the CO 335d threshold is met.
• Assess alternatives. Document the alternatives considered, short-time working, redeployment, natural attrition, hiring freezes, because the consultation must genuinely address whether redundancies can be avoided or reduced.
• Run a legal risk assessment. Screen for protected employees, discrimination exposure and CBA obligations before any decision is taken.
• Prepare provisional selection criteria. Draft objective, non-discriminatory criteria that can be defended if challenged.

Decision and notification triggers, when the threshold is met

Once modelling confirms that the number of intended dismissals within 30 days crosses the Article 335d threshold for the establishment size, the collective regime is engaged. At this point the employer must gather the data required for both the consultation and the subsequent cantonal notification: the reasons for the redundancies, the number and categories of employees affected, the number normally employed, and the period over which the dismissals are to take place. Capturing this information early avoids delay when the formal steps begin.

Consultation duties under CO 335f, whom to consult, timing and documentation

The consultation duty is the cornerstone of the mass dismissal Switzerland procedure. Under Article 335f CO, the employer must consult the employee representatives, or, where none exist, the employees themselves, before taking the final decision. The consultation must be genuine: employees must be given a real opportunity to formulate proposals to avoid the redundancies, reduce their number, or mitigate their consequences.

• Provide written information. The employer must supply, in writing, at least the reasons for the collective redundancy, the number of employees affected, the number normally employed, and the period within which the dismissals are envisaged.
• Allow adequate time. Representatives need a reasonable period to consider the information and respond with proposals. A rushed or token consultation risks being treated as no consultation at all.
• Consider proposals in good faith. The employer must examine any suggestions genuinely before deciding. The duty is to consult, not merely to inform.
• Keep minutes. Record every meeting, the information provided, the proposals received and the employer’s reasoned response. This documentation is the primary defence against later claims that consultation was inadequate.

Only once the consultation is complete may the employer take the final decision to proceed with the collective redundancy.

Notification to the cantonal employment office under CO 335g

After consultation, Article 335g CO requires the employer to notify the cantonal employment office in writing of the intended collective redundancy and to send a copy of that notification to the employee representatives. The notification allows the authority to seek solutions to the problems raised by the planned dismissals, for example, by facilitating redeployment or labour-market measures.

• Include the required data. The notification should mirror the consultation information: reasons, the number and categories of employees affected, the number normally employed, and the timeframe for the dismissals.
• Copy the employee representatives. The representatives must receive a copy of the notification and may submit their own observations to the office.
• Respect the effect on notice. A contract terminated as part of a collective redundancy ends, at the earliest, 30 days after the notification to the cantonal office, unless it ends later by operation of the ordinary notice period. Employers must therefore calculate end dates by reference to the notification, not simply the internal decision date.
• Check cantonal specifics. Confirm the correct office, the required form and any local timing expectations, as practice differs between cantons.

Drafting and implementing a social plan

Where the undertaking meets the size and dismissal thresholds in Article 335i CO, the employer must negotiate a social plan. Even where negotiation is not strictly mandatory, a well-designed social plan is a powerful tool for reducing conflict and litigation. The minimum content and typical components are addressed in the dedicated section and comparison table below.

Final steps: termination letters, timing and record-keeping

Only after consultation and notification are complete, and any required social-plan process has run, should individual termination letters be issued. Each letter must respect the applicable notice period and the effect of the collective notification on contract end dates. Retain the full paper trail, consultation minutes, the notification and its acknowledgement, the social plan and the selection matrix, for the limitation period during which claims could be brought. In a mass dismissal Switzerland process, contemporaneous documentation is the difference between a defensible and an indefensible position.

Consultation vs. notification vs. social plan: employer obligations compared

These three duties are frequently confused, yet each has a different legal basis, a different addressee and a different consequence for non-compliance. Consultation under Article 335f CO is owed to the employees or their representatives and must occur before the decision. Notification under Article 335g CO is owed to the cantonal employment office and follows the consultation. The social-plan obligation under Articles 335h–335k CO is owed to affected employees and is negotiated where the thresholds apply. Failing any one of them creates distinct exposure, most seriously, an inadequate consultation can render the collective redundancy abusive and give rise to compensation claims.

Consultation, notification and social plan, side by side

Social plans explained: mandatory elements, negotiable items and drafting tips

A social plan is a package of measures designed to avoid or soften the consequences of a collective redundancy for the employees who lose their jobs. In a mass dismissal Switzerland process, the social plan is often where the commercial and human dimensions meet, and where careful drafting pays for itself many times over by pre-empting disputes. Articles 335h to 335k CO frame the obligation, the negotiation and the fallback of arbitration where agreement cannot be reached.

When a social plan is required versus recommended

Under Article 335i CO, larger undertakings that meet the specified size and dismissal thresholds are obliged to negotiate a social plan with the employee representatives, and, failing agreement, the matter can be referred to an arbitral tribunal under Article 335j CO. Below those thresholds a social plan is not strictly mandatory, but it remains strongly advisable: it demonstrates good faith, supports the consultation narrative, and materially reduces the risk of individual claims. Even smaller employers routinely adopt social measures voluntarily for these reasons.

Typical components of a social plan

• Financial compensation. Severance or transition payments, often calculated by reference to salary, length of service and age.
• Retraining and requalification. Funding for courses that improve the employee’s re-employability.
• Outplacement and placement services. Professional support to help departing employees find new roles.
• Notice enhancements. Extended notice or garden-leave arrangements beyond the statutory minimum.
• Internal redeployment. Priority access to vacancies elsewhere in the organisation.
• Fair application of selection criteria. A transparent, documented method so that the social plan is applied consistently and defensibly.

Employers should also address the tax and social-insurance treatment of the measures, as the characterisation of a payment can affect both the employee’s net position and the employer’s contributions.

Negotiation tactics, timelines, binding clauses and dispute resolution

Negotiating a social plan is a structured exercise, not an open-ended one. Set a realistic timetable that runs in parallel with the consultation so that the collective process is not stalled. Distinguish clearly between binding commitments and aspirational statements: only the former will be enforced. Build in a dispute-resolution mechanism, and be prepared for the possibility of referral to an arbitral tribunal under Article 335j CO if the thresholds apply and agreement proves elusive. A social plan that is precise about eligibility, calculation and payment timing is far less likely to generate downstream litigation than one drafted in general terms.

Remedies, penalties and litigation risk

The principal risk in any mass dismissal Switzerland process is that a defective procedure renders the terminations abusive. Where an employer fails to consult properly or ignores the collective machinery, affected employees may bring claims for compensation, which under the CO is capped in the case of abusive dismissal at a maximum linked to the employee’s salary. The Swiss Federal Supreme Court has developed the case law on when consultation is adequate and what remedies flow from breach; employers and their counsel should review the current jurisprudence before finalising a process, and identify the specific decisions relevant to their sector and canton.

Alongside private claims, the cantonal employment office may become actively involved once notified, seeking to influence the outcome or facilitate labour-market solutions.

Protecting against claims

• Document everything. Consultation minutes, written information provided, proposals received and the employer’s reasoned responses are the first line of defence.
• Sequence correctly. Ensure consultation precedes the decision and notification precedes the individual notices.
• Apply transparent selection criteria. Objective, non-discriminatory and evenly applied criteria neutralise the most common grounds of challenge.
• Retain records. Keep the full file for the limitation period during which claims may be brought.

Best practice for settlement clauses and releases

Where employees accept a social-plan package or an individual settlement, well-drafted release language can bring closure to potential disputes. Releases must be clear about their scope, freely entered into, and consistent with mandatory protections that cannot be waived. Under Swiss law an employee generally cannot validly waive certain claims arising from mandatory provisions during employment and for a period after it ends, so poorly drafted or coercive settlements risk being set aside. Counsel review is advisable before offering any release in a collective context.

When to instruct counsel and estimated costs

Not every reduction in force requires external lawyers, but certain triggers make specialist advice essential: complex or multi-site reorganisations, cross-border redundancies affecting non-resident employees, the presence of a CBA, potential discrimination exposure, and any situation where the social-plan thresholds under Article 335i CO are met. Costs in Switzerland vary widely with the complexity and duration of the matter and the seniority of the adviser. For an indicative range and how fees are typically structured, see the guide to Employment lawyer fees, Switzerland (2026).

What counsel will draft and review

• The written consultation information and the consultation strategy.
• The cantonal notification letter and supporting data.
• The social plan, including compensation formulas and dispute-resolution clauses.
• Individual termination letters and any settlement or release documents.
• The selection matrix and the discrimination-risk assessment.

Templates and tools

To operationalise a mass dismissal Switzerland process, employers benefit from a small suite of standardised documents that can be adapted to each case. A compliance checklist keeps the sequence of duties on track; a sample notification template ensures the cantonal office receives complete data; a social-plan table of contents structures the negotiation; and a selection-matrix template supports transparent, defensible choices. These assets should be tailored to the applicable canton and any CBA before use, and reviewed by qualified counsel.

Next steps and further reading

A correctly managed mass dismissal Switzerland process rests on three pillars: genuine consultation under Article 335f CO, timely notification to the cantonal employment office under Article 335g CO, and, where the thresholds apply, a negotiated social plan under Articles 335h to 335k CO. Employers who sequence these steps correctly and document each stage will substantially reduce their litigation exposure. Given the variation in cantonal practice and the stakes involved, employers should obtain tailored Swiss legal advice before implementing any collective redundancy.

Sources

1. Swiss Code of Obligations (Consolidated text), Articles 335d–335k
2. State Secretariat for Economic Affairs (SECO)
3. Swiss Federal Supreme Court (Bundesgericht / Tribunal fédéral)
4. Geneva Bar Association (ODAGE)
5. Swiss Federal Statistical Office (BFS)