Contractual penalty

After a contract is signed, any breach of contract may give rise to a contractual penalty (in addition to possible compensation for loss or damage). Courts have the possibility of reducing contractual penalties that are deemed excessive.

Within the scope of apprenticeships, the contractual penalty does not play a major role in particular due to Art. 337d CO. According to this provision, if the learner does not begin working for the employer or leaves the employer abruptly without any reasonable cause, the host company may require the learner to pay a contractual penalty, which is equivalent to a quarter of their monthly salary, as well as compensation for additional loss or damage.