In the workplace, redundancy refers to the termination of an employee’s contract due to a reduction in the workforce. It can be a difficult experience for both the employee and employer and is often done for economic reasons. Employers have a legal obligation to follow proper procedures when making redundancies.
When being made redundant by your emplyer in Switzerland, our job as Financial Planners is simply to:
- Review your budget and expenses to determine where you can cut back.
- Apply for any government benefits or unemployment benefits that you may be eligible for.
- Evaluate your current debts and explore options for repayment, such as consolidation or negotiating new payment plans.
- Consider your retirement savings and adjust your investment strategy accordingly.
- Update your resume and begin searching for new employment opportunities while being mindful of your financial situation.
Yes, Swiss law requires employers to provide employees with a minimum notice period and severance pay when terminating their employment. The amount of compensation varies depending on the length of service and other factors.
Yes, it is possible to withdraw money from your pension fund in Switzerland if you are made redundant, but this should be considered a last resort as it can have a significant impact on your retirement savings.
Depending on your circumstances, you may be eligible for unemployment benefits, job placement services, and financial counseling. It is advisable to speak with a financial advisor or the relevant government agency to explore your options.