Garden Leave (Freistellung) in Switzerland: Getting Paid During Notice

So, you've just handed in your notice, or perhaps your employer has, and now you're wondering about this rather Swiss concept of "garden leave," or Freistellung as it's known here. It can feel like a strange limbo, a period where you're technically still employed but not actually going into the office. Many expats find this bewildering; in some cultures, you work right up until your last day, but Switzerland often does things differently. This guide will walk you through what Freistellung means, what your rights and obligations are, and how to navigate this unique period so you don't end up feeling lost in translation.

What Exactly is Garden Leave (Freistellung) in Switzerland?

Imagine this: you've been working diligently, contributing to your team, and then, after giving or receiving notice, you're told you don't need to come into the office anymore. That's Freistellung in a nutshell. It's essentially a temporary release from your obligation to work, typically for the duration of your notice period. While it sounds like a dream for some – paid time off! – it comes with its own set of rules and expectations that are crucial to understand. It’s not just an extended holiday; it’s a specific legal status within Swiss labor law.

The Legal Framework and Your Rights

In Switzerland, Freistellung isn't explicitly defined as "garden leave" in the same way it might be in Anglo-Saxon legal systems. Instead, it falls under the broader principles of the Swiss Code of Obligations (OR), particularly articles concerning employment contracts. Your employer effectively waives their right to your work performance during this period, but your employment contract technically remains active. This means that while you're not expected to perform your duties, the terms of your contract, including loyalty obligations and confidentiality, usually still apply.

The decision for Freistellung is typically at the employer's discretion, especially if there's a lengthy notice period or concerns about sensitive information. For example, if you're working in a competitive industry like banking or pharmaceuticals, your employer might prefer you to be on garden leave to prevent you from accessing new projects or client data that could benefit a future competitor. This is particularly common when an employee moves to a direct rival.

Full vs. Partial Freistellung

It’s important to distinguish between full and partial Freistellung. Full Freistellung means you are completely released from all work duties for the entire notice period. You don't go to the office, you don't check emails, and you don't engage in work-related tasks. This is often the case when an employer wants to immediately cut off access to sensitive information or avoid potential conflicts within the team.

Partial Freistellung, on the other hand, is when you are released from some duties but still expected to perform others, or perhaps work a reduced schedule. For instance, you might be asked to complete a specific project, train your replacement, or be on call for urgent matters. This is less common for "garden leave" specifically, but can occur if an employer needs a structured handover but wants to limit your involvement in new initiatives. Always get the terms of your Freistellung in writing to avoid any misunderstandings. Without clear communication, you might inadvertently violate terms you didn't even know existed, potentially impacting your final pay or references.

Why Do Employers Implement Garden Leave?

For expats, the idea of Freistellung can feel a bit counter-intuitive. Why would a company pay you not to work? It's not out of pure generosity, I can assure you. Swiss employers, like any others, have strategic reasons for sending employees home during their notice period. Understanding these reasons can help you navigate the situation with more clarity and less personal offense.

Protecting Company Interests: Confidentiality and Clients

One of the primary drivers for implementing garden leave is to safeguard the company’s vital interests. Imagine you're in a high-level position with access to trade secrets, client lists, or upcoming project strategies. If you're moving to a direct competitor, your current employer has a very strong incentive to prevent you from accessing new, potentially valuable information during your notice period. Keeping you out of the office mitigates the risk of sensitive data leaking or being used for competitive advantage. This is especially true if you have a non-compete clause in your contract, which might be enforced by sending you on garden leave.

Beyond confidentiality, there's the client relationship aspect. If you're a client-facing employee, particularly in sales or account management, your employer might fear you could poach clients or damage relationships during your exit. By placing you on Freistellung, they can control the communication with clients and smoothly transition them to another team member, rather than having you present during a potentially awkward handover period. It’s about managing perceptions and maintaining stability for their business.

Practicalities and Reducing Workplace Conflict

Sometimes, Freistellung is simply a practical solution to a potentially awkward situation. If an employee has been let go, or if there's been some workplace conflict leading to the resignation, having that individual remain in the office can be uncomfortable or disruptive for everyone. Sending them on garden leave can prevent morale issues, gossip, or further tension in the workplace. It allows everyone to move on without prolonged discomfort.

Furthermore, if your role is being made redundant, or if your departure means a significant restructuring, there might genuinely not be any meaningful work for you to do during your notice period. Rather than having you sit idle, which can be demotivating for both you and your colleagues, Freistellung offers a clean break. It simplifies the administrative burden of your departure, allowing HR and management to focus on the transition rather than managing your daily activities. It’s a very pragmatic Swiss approach to an uncomfortable human situation.

Your Rights and Obligations During Garden Leave

Okay, so you’re on Freistellung. What does this actually mean for your day-to-day life? It’s not a free-for-all, nor is it a complete cut-off. There are clear financial and contractual implications that you absolutely need to understand. Many expats don't realize that while they're technically "free," they still have significant obligations.

Continued Salary, Benefits, and Vacation Accrual

This is the golden rule of garden leave: your employment contract remains active, and so do your entitlements. This means you will continue to receive your full salary during the entire Freistellung period. This includes any fixed bonuses or allowances that are part of your regular remuneration. It’s crucial to understand your payslip; if you're curious about all those deductions, check out our guide on Understanding Swiss Payslips: Deductions for AHV, ALV, and NBU for a detailed breakdown.

Crucially, your benefits package also continues. This typically includes health insurance contributions, pension fund contributions (Pillar 2, or BVG), and accident insurance (UVG). You will also continue to accrue vacation days during this period. Often, if you have outstanding vacation days, your employer might insist that you take them during the Freistellung period. This reduces their liability to pay out unused vacation days at the end of your employment. Make sure this is clearly communicated and documented. If you're moving on to a new role, these continued contributions are important for your overall financial health in Switzerland.

Restrictions on New Employment and Other Activities

While you're not working for your current employer, you’re usually not entirely free to start a new job or pursue other income-generating activities without repercussions. The core principle here is the duty of loyalty (Treuepflicht) to your employer. This means you generally cannot take up new employment, especially with a competitor, or start your own business during Freistellung if it directly conflicts with your current employer's interests or prejudices them.

For example, if you start a new, full-time job during your garden leave, your former employer might argue you have violated your contract and potentially reclaim salary paid for the overlapping period. Some employment contracts contain specific clauses regarding Freistellung and new employment, sometimes allowing it if the new role doesn't conflict, but often requiring prior written consent. It's always best to clarify these restrictions with your employer or consult a legal expert to avoid any nasty surprises. If you're keen to keep your language skills sharp or prepare for a new industry, platforms like iTalki could be a great way to use your garden leave productively without violating non-compete clauses, as it's not competitive employment.

Dealing with Company Property and Access

This is often where the Freistellung begins: the handover of company property. Typically, on the day your garden leave commences, you'll be asked to return your laptop, phone, access badges, and any other company assets. Your access to internal systems, email, and shared drives will usually be revoked almost immediately. This is a standard procedure to protect information and streamline the exit process.

While you might feel disconnected, remember that your employment contract is still active. This means that if something unexpected arises – perhaps a client query related to your past work that only you can answer – your employer might still reach out. However, if the terms of your Freistellung state you are fully released from duties, you are generally not obligated to respond to work-related communications. It's a fine line, and clear communication at the outset is your best defense. If you're unsure, ask HR for clarification on expectations during this period.

Navigating the Practicalities of Freistellung

Being on garden leave can be a strange experience. One day you’re in the thick of it, the next you’re at home with time on your hands. It’s not just about what you can and can’t do legally, but also how you manage this period personally and professionally.

Communication with Your Employer and Colleagues

Maintaining professional communication, even when you’re out of the office, can be beneficial. While you’re not expected to respond to daily emails, a polite "thank you" email to your team or manager can leave a good lasting impression. This is especially important for future references, which are highly valued in Switzerland. You can learn more about this in our guide on The Arbeitszeugnis (Reference Letter): How to Decode Swiss HR Language.

If your employer does reach out for clarification on a specific matter, use your best judgment. If it’s a quick question that doesn’t require extensive work, a brief response can be a goodwill gesture. However, if it requires significant effort, it might be worth reminding them of your Freistellung terms or politely directing them to the person who took over your responsibilities. Clarity at the beginning of your garden leave about expected contact points and urgent scenarios can prevent awkward situations.

Financial Considerations: Taxes and Unemployment

Even though you’re not physically working, your salary during Freistellung is still considered regular income and is subject to all standard Swiss deductions and taxes. This is where understanding your tax obligations becomes critical. For expats, especially those on a B permit earning above the Quellensteuer threshold, filing a tax return might be necessary. Tools and services like Taxes for Expats can be incredibly helpful in navigating these nuances, especially if your Freistellung crosses over a tax year. You can also dive deeper into Withholding Tax (Quellensteuer) vs Standard Taxation for Foreigners to understand how your specific tax situation might be affected.

What about unemployment benefits (RAV)? If your next job starts immediately after your garden leave, then this isn't an issue. However, if there's a gap between your last day of Freistellung and your new employment, you might be eligible for unemployment benefits. The good news is that during Freistellung, you are still officially employed, so your continued salary payments contribute to your RAV eligibility. It's often recommended to register with the regional employment office (RAV) as soon as you receive notice, even if you are on garden leave, especially if you foresee a gap in employment. This proactive step ensures that all administrative requirements are met early.

Using Your Time Productively: Upskilling or Job Hunting

Garden leave, despite its restrictions, can be a fantastic opportunity. If you’re not allowed to start new work immediately, you can use this time to upskill. Perhaps there’s a new language you’ve always wanted to learn – iTalki again could be a great resource for that – or a certification you need for your next career step. This period can be invaluable for professional development that you wouldn’t have time for otherwise.

It’s also an excellent time for focused job hunting. Even if you can’t start a new job, you can certainly interview, network, and polish your CV. Many job boards and recruitment agencies operate discreetly. Consider using your network and platforms like LinkedIn to connect with potential employers. Remember, while you might be restricted from performing work for a new employer, there are generally no restrictions on searching for it. Take advantage of this unique time to set yourself up for future success. Our guide on Job Hunting in Switzerland: Market Strategies for English Speakers can provide more specific strategies.

Common Pitfalls and How to Avoid Them

Even with the best intentions, garden leave can sometimes lead to unexpected issues. Knowing what these potential problems are can help you steer clear of them and ensure a smooth transition.

Misunderstandings About Restrictions

One of the biggest pitfalls is a lack of clarity regarding the terms of your Freistellung. Many expats assume that "garden leave" means they can do whatever they want, but this is rarely the case. Without a clear, written agreement detailing what you can and cannot do (especially regarding new employment, client contact, or even using social media), you risk violating your contractual obligations.

To avoid this, ask for clarification. Don't be shy about asking your HR department or manager for a written confirmation of the Freistellung terms. This document should specify your last working day, the duration of the Freistellung, any expectations for availability, and crucially, any restrictions on engaging in new activities or employment. This clarity protects both you and your employer. If you’re not confident in your German or French, perhaps brushing up on some business language with iTalki could help you better understand such legal documents.

The Emotional Toll of Disconnection

Being suddenly disconnected from your daily work routine and colleagues can take an emotional toll. While the initial thought of "paid holiday" sounds appealing, many individuals find the sudden lack of purpose and social interaction surprisingly difficult. You might feel isolated, out of the loop, or even resentful, especially if the Freistellung was unexpected or followed a difficult departure.

It's important to proactively manage your well-being during this period. Maintain a routine, even if it's not work-related. Dedicate time to exercise, hobbies, and social connections. Use the time for personal projects, volunteering, or exploring Switzerland. Treat it as a transitional phase, not just a void. If you find yourself struggling, remember that Mental Health in Switzerland: Accessing Therapists and Psychiatric Care is an option, and there are many English-speaking resources available to support you.

Key Aspects of Garden Leave (Freistellung)

Here's a quick summary of the key elements of garden leave in Switzerland to keep in mind:

Aspect	What it Means for You	Key Consideration
Employment Status	You remain an employee, contractually bound.	Duty of loyalty, confidentiality clauses still apply.
Salary & Benefits	Full salary, pension (BVG), health insurance, accident insurance continue.	Check your payslip, ensure correct contributions are made.
Vacation Accrual	You continue to accrue vacation days.	Employer may insist on you taking unused days during Freistellung.
Work Obligation	Released from duty; no need to come to the office.	Get written confirmation of no work expectation.
New Employment	Generally restricted if it conflicts with current employer.	Seek clarity in writing; consult legal advice for complex cases.
Company Property	Expected to return all company assets (laptop, phone, badges).	Ensure a clear handover protocol.
Communication	Professional, but no obligation to respond to work queries (unless partial Freistellung).	Clarify expectations for urgent contact.
Taxes & Social Sec.	Salary is taxable income; social security contributions continue.	Factor into your overall financial and tax planning. Consider services like Taxes for Expats for help.
Unemployment	Your Freistellung period counts towards RAV eligibility.	Register with RAV proactively if a gap in employment is expected.

Disclaimer

Please remember that I am a lifestyle blogger, not a legal professional. The information provided in this guide is for general informational purposes only and does not constitute legal, financial, or tax advice. Swiss labor law can be complex and depends heavily on individual circumstances, your specific employment contract, and cantonal regulations. Always consult with a qualified Swiss legal expert or HR professional for advice tailored to your personal situation.