The Cantonal Court Formula or Judge Formula, calculates the severance payment based on the following formula “Severance=A x B x C”, where:
- The A-factor is the weighted number of years of service of the employee.
- The years of service where the age of the employee is 35 or less will count as 0.5 month per year of service;
- The years of service where the age of the employee is between 35 and 45 years of age will count as 1 month per year of service;
- The years of service where the age of the employee is between ages 45 and 55 will count as 1.5 month per year of service;
- The years of service where the age of the employee is above age 55 will count as 2 months per year of service;
- The B-factor is the average monthly gross salary, which includes fixed components like holiday allowance, 13th month, etc;
- The C-factor is the correction factor. In most of the cases it is usually 1.0 (neutral dissolution), but may be fixed at a higher or lower level by the Court depending of the specific situation of the case. For example: behavior of the employer and employee, the job market position of the employee and the financial possibilities of the employer may all play a role.
The Judge Formula Calculation Form
Fill in the form to calculate your compensation.