Employer John Smith immediately calls the legal advice phone service offered by Protekta, his legal protection insurance provider. The JurLine legal professional explains that dismissal without notice is only possible if there is ‘good cause’. He thus has three working days to respond and if the dismissal is not justified, he will have to pay the employee’s salary for the duration of the normal notice period. The employer may also have to pay up to six months’ salary as compensation.

The JurLine legal professional refers the case to a labour law specialist at Protekta, who immediately contacts the employer. Together, they assess the facts and legal situation, review the evidence and opt for dismissal without notice. A week later, the employer receives a letter from a lawyer, who deems the dismissal without notice to be unjustified and makes several claims. Protekta handles the correspondence with the lawyer and rejects all claims.

The lawyer then submits a claim to the conciliation authority, demanding CHF 20,000 from the employer. Due to the situation known as the lawyers’ monopoly, lawyers employed by providers of legal protection insurance are not permitted to act in proceedings before a court or conciliation authority. For this reason, Protekta brings in a local lawyer, who specialises in labour law, to represent the employer. Protekta covers the external costs incurred.

The other party concedes that their arguments lack merit and agrees to a settlement. As a result, the employer has to pay the employee CHF 2,000 as part of her 13th month’s salary. The dismissal without notice is valid and has no negative consequences for the employer.

More about employment-contract legal protection insurance.