Facts

In this case, X., an employee of Moroccan nationality, worked as a housekeeper and childminder for the spouses Y. in Switzerland. The employers did not pay X. a salary for nearly a year, except for an amount of 1,438 francs. On September 14, 2005, X. terminated her employment. X. then brought an action before the Labor Court of the Canton of Neuchâtel to claim the payment of 51,160 francs (reduced to 40,000 francs) in salary and compensation for moral damages. The Labor Court ordered the spouses Y. to pay X. 8,375 francs 15 in gross salary, denying the existence of a valid reason for immediate termination. The Civil Cassation Court of the Cantonal Tribunal of Neuchâtel subsequently partially upheld X.'s appeal and ordered the spouses Y. to pay her 20,899 francs 05 in gross salary, considering that the non-payment of the salary alone constituted a valid reason for immediate termination. However, the Cantonal Court refused to award X. compensation for moral damages.

Considerations

The central issue is whether Article 337c(3) of the Swiss Code of Obligations (CO), which allows the judge to award compensation in the event of unjustified immediate dismissal by the employer, can be applied by analogy when the worker terminates the contract with immediate effect for valid reasons under Article 337b CO. The case law of the Federal Tribunal has not clearly resolved this issue. Part of the Cantonal case law and legal doctrine is in favor of the analogous application of Article 337c(3) CO, considering that there would be a "shocking disparity" in not granting compensation to the worker under Article 337b CO. However, the majority of the doctrine and case law rejects this…