Does Swiss law provide a TFR equivalent as in Italy? (cross-border guide)
Answered with official sources — Rights, dismissal and mobbing
Updated 11 August 2026
Answer
No, there is no mandatory TFR. The severance indemnity (CO art. 339b-339c) is only due to workers aged ≥50 with ≥20 years of service and equals 2-8 months of salary; it has been largely replaced by 2nd-pillar (LPP) benefits since 1985 source: Fedlex CO RS 220. At contract end the worker gets the LPP accrued amount as pension or capital. For cross-border workers this is effectively the Italian TFR equivalent. In Italy the Swiss employer is not required to pay TFR since the employment is governed by Swiss law (CO art. 320). A cross-border worker with prior Italian INPS contributions keeps their accrued TFR with the Treasury Fund or pension funds. The Swiss 2nd pillar is recognised in Italy as foreign supplementary pension.
Official sources
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Other questions on this topic
- Am I eligible for short-time work compensation (RHT) as a cross-border worker?
Yes. The Swiss LACI (Unemployment Insurance Act, RS 837.0) art. 31 provides Short-Time Work Compensation (RHT) for those suffering temporary work loss (order drop, COVID, exceptional events).
- Must the employer issue a work certificate (Arbeitszeugnis)?
Yes, mandatorily (CO art. 330a). A full work certificate (Arbeitszeugnis) must state: activity, duration, quality of work and conduct, written in Swiss-standard coded language (standardised neutral formulas, never explicitly negative).
- Am I protected against workplace discrimination as a cross-border worker?
Yes. The Free Movement Agreement (AFMP) Annex I art. 9 requires equal treatment between Swiss and EU/EFTA workers on pay, social benefits, working conditions and training. The Gender Equality Act (LPar RS 151.1) bans gender discrimination in hiring, promotion, dismissal, pay.
- Is the Italian NASpI available to a cross-border worker dismissed from Switzerland?
Yes. Under EU Reg. 883/2004 art. 65 a totally unemployed cross-border worker is entitled to benefits in the country of residence (Italy) based on foreign contributions.
- What should I do in case of a workplace accident?
Notify the employer immediately and request the accident-notification form, sent to SUVA (or LAINF insurer) within 3 days. The doctor treats and certifies work incapacity.
- Is dismissal always lawful in Switzerland?
No. Although the principle of contractual freedom applies (CO art. 335), dismissal is abusive if motivated by protected grounds (CO art. 336): nationality, ethnic background, religious or political opinion, trade-union activity, age, gender, family status, whistleblowing.
- Who pays salary during long-term illness?
Beyond the CO scale (see salary FAQ) the collective AIGM (daily illness allowance) kicks in from day 31 in most cases. It covers 720 days in 900 at 80-90% of salary, funded by AIGM contributions split employer/employee.
- How do I protect myself from mobbing in Switzerland?
The employer has a duty to protect employees' personality (CO art. 328 and LTr art. 6). Mobbing — repeated psychological harassment at work — breaches this duty and triggers civil liability.
The information on this page is for guidance only and does not replace personal advice from an accountant, lawyer or union office. Tax, social-security and permit rules change frequently: always verify with the official sources linked in each answer.