Legal Basis under Swiss Law#
Pursuant to Art. 324 of the Swiss Code of Obligations (default of acceptance by the employer), an employee on garden leave is entitled to full regular remuneration until the official termination date.
Base Salary, 13th Month and Company Perks#
Base salary and pro-rata 13th-month salary must be paid in full. Contractual benefits permitting private use (such as company cars or smartphones) cannot be revoked without fair monetary compensation.
Offsetting Remaining Holidays and Overtime#
Employers can request that outstanding vacation days be taken during garden leave, provided the leave period is sufficiently long to allow both genuine rest and job hunting.
Taking up New Employment#
You may start another job during garden leave, but any interim earnings will be deducted from your former employer's wage obligation under Art. 324 para. 2 CO. Fiduciary duties and non-compete rules remain applicable.
Strictly No Mention in Employment References#
Established Swiss case law prohibits mentioning garden leave in your final employment reference (Arbeitszeugnis), ensuring your professional standing is protected.
Checklist when you receive a release-from-work letter#
Always ask for the release in writing. Clarify in writing: return of company property, compensation of holiday entitlement, release from overtime, and permission to take on new work.
Three clauses, three completely different consequences#
How a release from work takes effect is decided by the wording. The three most common variants differ economically by several weeks of salary:
| Wording | Effect | What you must watch for |
|---|---|---|
| “Released with continued payment of salary” | Salary, holiday and social benefits continue unchanged | Pure release; holiday and overtime balances remain untouched |
| “Released with holiday and overtime credited against the release” | The days off are offset against accrued balances | Have the balance confirmed in writing beforehand, otherwise the balance disappears |
| “Irrevocably released” | No return to the company, not even for individual days | Settle the work reference and the handover of duties in advance |
The second variant is the most common and the most expensive for employees when it is signed without checking. Ask for the status of your holiday and overtime balances in writing on the day of the release – and check whether offsetting is permissible at all.
Release from work and job search: what is allowed now#
A paid release from work is, in practice, time for your job search. Three questions come up regularly, and all three have a clear answer:
- Applying is allowed. During the release you may apply and attend job interviews. However, you are obliged to observe your duty of loyalty and not to carry business secrets to your new employer.
- Availability. Unless expressly agreed otherwise, you remain an employee: you are reachable for questions from the company within reasonable limits.
- Revocation. “Irrevocable” means that the employer cannot withdraw the release. If the word is missing, a revocation may be possible in certain circumstances – which is why you should insist on this wording.
Even though the salary continues: register with the unemployment insurance fund if the release is connected with a termination. Those who register too late risk days of suspension, even with an ongoing salary entitlement.