Facts
In the present case, T. F. worked as a head chef and his partner I. D. as a managing director in a hotel business operated by Z. The employment relationship was fixed-term until mid-May 1989. However, shortly after the commencement of their employment, on 23 and 25 June 1987, advertisements appeared in which T. F. and I. D. were seeking a position as a hotelier couple with immediate effect or by agreement. Thereupon, Z. dismissed the two employees without notice on 20 July 1987.
T. F. and I. D. filed a lawsuit against the dismissal without notice and demanded compensation for the lost wages. The Cantonal Court of Valais upheld the claim and ordered Z. to pay a total of CHF 57,734.45. Z. then unsuccessfully appealed to the Federal Supreme Court.
Considerations
In its reasoning, the Federal Supreme Court stated that the plaintiffs had breached their duty of loyalty to the employer by publishing the job advertisements. The advertisements had unambiguously expressed their intention to terminate the existing employment contract, which would have lasted for almost two more years, and to take up a new position as soon as possible. This behavior was capable of compromising the legitimate interests of the employer.
However, a breach of the duty of loyalty alone does not justify dismissal without notice. Rather, the…