Facts
This decision of the Swiss Federal Tribunal concerns the legal nature of the compensation for abusive termination of the employment contract, as provided for in Art. 336a of the Code of Obligations (CO). The Court was seized with an appeal against a judgment rendered by a cantonal court.
The main factual elements are as follows
- Parties: Company X. (appellant) against A. and others (respondents)
- Jurisdiction: 1st Civil Court of the Federal Tribunal
- Date: July 30, 1997
- Main subject: Determination of the legal nature of the compensation for abusive termination of the employment contract within the meaning of Art. 336a CO.
Considerations
The Federal Court first noted that recent case law presented an internal contradiction concerning the legal nature of the compensation provided for in Art. 336a CO. Some decisions considered it to have a punitive character, while others also recognized its compensatory function.
After examining the preparatory work of the law, the Court concluded that the compensation under Art. 336a CO has a mixed character, both punitive and compensatory. It aims both to sanction the employer for the abusive nature of the dismissal and to compensate the worker for the moral harm suffered. The judge must therefore…