Facts

The facts of the case can be summarized as follows

  • The plaintiff [Y.] was employed as an auxiliary worker by the defendant X. AG.
  • In June 1993, [Y.] became pregnant. In October 1993, X. AG terminated the employment relationship as of April 30, 1994, on the grounds that the department in which [Y.] was working had to be closed because the assembly contract with Z. AG was not renewed.
  • [Y.] filed a lawsuit with the labor court for payment of wages during the notice period.
  • The labor court partially upheld the claim, whereupon X. AG filed a nullity appeal. The cantonal court largely confirmed the decision.
  • X. AG ultimately appealed to the Federal Supreme Court.

Considerations

The Federal Supreme Court dismissed the appeal of X. AG. In its reasoning, it stated the following:

a) Art. 336c para. 1 CO prohibits the employer from terminating the employment relationship during certain blocking periods after the probationary period. This termination protection also applies in the event of a complete or partial business closure.

b) Neither the wording nor the legislative history of Art. 336c CO indicate that the termination protection does not apply in the case of business closures. The prevailing legal doctrine holds the view that the…