How Do You Give Notice to Terminate a Contract on Time?
Prior to giving notice to terminate a contract, it is important to check which deadlines must be complied with and in what form the notice of termination must be given.
Statutory or contractual notice periods
The notice period is the period of time between the provision of the notice of termination and the actual end of the contract.
This period may be set out in the contract or required by law. In Switzerland, statutory notice periods vary according to the type and duration of the contract.
In addition to the notice period, any required termination dates must be complied with. For example, the statutory provisions relating to employment contracts provide that these can only be terminated at the end of a calendar month. In relation to rental agreements for real estate, the law refers to the termination dates which are customary to the location.
There are also additional periods where it is forbidden by law to terminate employment contracts (for example, during sickness, pregnancy, or military service by employees). Notice to terminate given during one of these prohibited periods is invalid and must be repeated once the prohibited period has expired.
Written notice of termination
Written notice of termination is only required by law for a few types of contracts. However, the written form is normally agreed in contracts.
The written form is defined by statute and means that a handwritten signature or a qualified electronic signature is required.
Therefore, a simple email or text message will not be sufficient if a contract states that a notice of termination must be in writing.
Sending notice of termination by email or text message is possible if the contractual provisions expressly permit this, or if nothing at all is agreed about the form. In this case, notice to terminate can also be given verbally.
Service and retaining evidence
It is important to note that a notice to terminate must be received in order to be valid. This means that it will only be valid if the recipient is or could have been aware of the notice to terminate. If a particular termination date is intended, for example the end of a month, and if the notice of termination is being served by mail, the notice of termination must be sent a few days prior to the end of the month so that it can reach the other party in time.
A registered letter which cannot be directly delivered is normally deemed to be served at the latest on the last day of the seven-day collection period. If the receiving party has already been informed of the delivery and it can be expected that the party will promptly collect the registered letter from the post office, according to case law , service will be deemed to have occurred on the day from which the collection notice states that the letter is ready for collection from the post office. However, if the recipient can prove that he was absent or prevented from collecting at the time of delivery, the notice period only starts on the day of return or of effective knowledge.
As an alternative, the party giving notice of termination can personally hand over the notice and obtain written confirmation of receipt. If the receiving party refuses to confirm receipt, if necessary, a third party can also be used as a witness.
In the event of a dispute, the party giving notice of termination must prove that notice was given in the correct form and in a timely manner.
Therefore, notice of termination must always be properly documented and proof of delivery should be evidenced by appropriate records.