Kantonrechtersformule
Cantonal judge's formula
The subdistrict court judges’ formula is a calculation method used by subdistrict court judges to determine the amount of severance pay in cases of unlawful termination of an employment contract.
The kantonrechtersformule comprises the product of three factors: the number of weighted years of service (A), an age-based correction factor (B), and the gross monthly salary including fixed emoluments (C). The resulting figure represents the compensation to be awarded, expressed in months of salary.
The formula long served as a guideline for determining fair compensation on termination of employment. Although the statutory transition payment has been the principal remedy since 2015, the kantonrechtersformule continues to be applied in calculating supplementary awards or in circumstances where the statutory transition payment is considered inadequate.
In practice, counsel and courts rely on the formula to quantify the financial consequences of dismissal and to negotiate the terms of a termination agreement.
“The subdistrict court judge applied the cantonal judges’ formula and awarded the employee compensation equivalent to six months’ salary.”
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