A job move to Switzerland can be tempting – higher salaries, stunning landscapes, and new career prospects. Yet if you have spent ten years in a permanent position in Germany and accept the offer, you should first check which labour‑law entitlements you would leave behind.
Job move to Switzerland: why your last ten years in Germany count
After a decade with the same employer you have built up considerable seniority in Germany. This determines important rights such as the length of the notice period, the size of any possible severance payment, and your standing in a social selection. The longer you have been employed, the stronger your protection against redundancy dismissals.
Even for calculating claims like remaining vacation or overtime, your length of service matters. If you do not settle these claims before moving, you risk losing them or finding them hard to enforce later. That is why it is important to get a clear overview of your rights before deciding on the move to Switzerland. You can also use our basics on protection against dismissal claims – it explains how to proceed if you are dismissed.
Resigning or Settlement Agreement: What It Means for Your Entitlements
If you take the job offer from Switzerland, you must end your existing employment in Germany. You can do this either by resigning yourself or by concluding a settlement agreement with your employer. Both options have different consequences – especially for any severance payment and unemployment benefits.
If you resign, you usually have no claim to a severance payment – unless the employer offers one. Moreover, a voluntary resignation can trigger a waiting period for unemployment benefits if you do not start work in Switzerland immediately. Even if you move to Switzerland, you should not overlook the German unemployment insurance – sometimes you can later claim entitlements there.
A settlement agreement is often linked with a severance payment. However, it can also lead to a waiting period if you do not take up a new job without interruption. More on this topic can be found in our article on waiting period after a settlement agreement. Also, if you later discover mistakes in the agreement, challenging it may be relevant – see our piece on contesting a settlement agreement.
In any case, check whether the employer gave a regular notice or a redundancy‑based dismissal. If so, you may be able to obtain a severance payment through a dismissal protection lawsuit – even if you actually intend to move. Often a settlement with severance is the pragmatic solution.
Severance After Long Service: Negotiation Basis, Not Automatic
A severance payment is not an automatic right just because you have been employed for ten years. In many cases it is paid as part of a settlement agreement or a court‑approved settlement. Only if the employer expressly offers a severance in the dismissal letter – for example under § 1a of the Dismissal Protection Act – can you claim it. This is the exception rather than the rule.
A common rule of thumb is half a gross monthly salary for each year of service. This is merely a guideline, not a legal entitlement. Especially with long tenures like ten years, the severance can be considerably higher if the employer is keen to settle quickly. When planning a job move to Switzerland you should remember that this negotiating leverage exists only before the termination – afterwards the employer is no longer inclined to make concessions. For tips on how to maximise it, see our guide on successful severance negotiations. Basic information on severance is available in our overview of the topic.
Remaining Vacation, Overtime and Open Bonuses: Securing These Claims
Before moving to Switzerland you must ensure that you enforce all outstanding claims from your employment relationship. This includes not‑taken vacation, overtime, commissions or bonus payments. These claims do not automatically expire, but they can become harder to enforce if you only pursue them after leaving.
Ask for written confirmation of how many vacation days you still have and how many overtime hours have been accumulated. Clarify whether they can be paid out or whether you need to take them before your departure. Also, variable remuneration that is calculated on an annual basis must be paid out proportionally.
A tip: record all calculations in writing and have the employer sign them off. This avoids later disputes. Further helpful hints on enforcing such demands can be found in our article on vacation compensation after dismissal.
Occupational Pension Scheme and Work Reference: Don’t Forget
The occupational pension scheme (bAV) is an important building block that many employees overlook. If you have built up a bAV through your employer – for example via a direct insurance or a pension fund – you have several options: you can take it with you, leave it dormant, or have the accrued amount paid out. However, a payout may trigger tax and social‑security contributions. Seek advice from a specialist on this matter.
Equally essential is a qualified work reference. You are entitled to a reference that evaluates your duties and performance. Request it as early as possible during the ongoing employment so you can use it for your application in Switzerland. A good reference is often worth more than a high severance payment, because it opens doors with future employers.
Taxes and Social Security When Moving to Switzerland: A Brief Overview
Anyone relocating to Switzerland must become familiar with the local tax and social‑security system. In principle: your German employment ends, and you then fall under Swiss law. This affects health insurance, pension insurance and taxes.
Switzerland has its own social‑security system that differs from Germany’s. Your German social‑security contributions may possibly be credited, for instance toward your pension. Regarding taxes, there is a double‑taxation agreement that aims to prevent income from being taxed twice. Even when planning a job move to Switzerland, tax advice is indispensable. The exact rules are complex – professional advice pays off.
Also remember that you have to deregister in both countries and register again. Find out early about deadlines and formalities.
Before Signing: Checklist and Advice from an Employment Lawyer
Before you accept the job offer from Switzerland and terminate your German employment contract, you should tick off the following points:
- Record outstanding claims such as remaining vacation, overtime and bonuses in writing
- Check the notice period and any possible severance – especially when moving to Switzerland the severance question should be settled before you resign
- Decide whether to resign yourself or conclude a settlement agreement
- Clarify the occupational pension scheme
- Request a qualified work reference
- Clarify tax and social‑security questions with a tax adviser or specialist
- Observe the deadlines for the notice and the start in Switzerland
An independent employment lawyer can assist you at every step. He or she will verify that your claims have been calculated correctly, assess whether a severance payment is negotiable and evaluate whether the settlement agreement is favourable to you. The costs of a lawyer can, in the event of a dispute, be covered by a litigation funder such as RechtStark – we review requests for dismissal‑protection and severance claims and then assume the financing.
A move to Switzerland is a major decision – but with proper preparation and expert advice the chances are good that you will not leave any entitlements behind. Take the time to work through the checklist and seek support in good time.
Note: This article is for general information purposes only and does not replace individual legal advice. For a free initial assessment of whether litigation funding may be an option for your case, you can contact RechtStark.