Facts
A.C. (the Plaintiff) initially worked from 1976 to 1986 for the sole proprietorship A.C. and subsequently until March 31, 2001 for the successor company C. AG, where he managed over 30 employees. When A.C. applied for the position of Managing Director of the Cooperative X. (the Defendant), he submitted a work reference letter that he had written himself and that was signed by his wife, which deviated from the reference letter ordered by the judgment of the Labor Court. By contract dated August 7, 2000, A.C. was employed by the Defendant as Managing Director. By letter dated June 29, 2001, the Defendant dismissed him with immediate release from work. In early August 2001, the Defendant learned of the work reference letter from C. AG dated June 1, 2000 and subsequently declared the terminated employment contract to be non-binding.
Considerations
The Federal Supreme Court held that, in principle, a contract that is challenged due to the presence of a defect of intent is invalid from the outset - ex tunc. However, for the employment contract, Article 320(3) of the Swiss Code of Obligations provides for a special regulation, according to which, if the employee has performed work in good faith in the service of the employer, both parties must fulfill the obligations arising from the employment relationship in the same way as from a valid contract, until it is terminated due to the invalidity of the contract by one of the parties.
The Federal Supreme Court held that the requirement of the employee's good…