Key legal question
How long is a fixed-term employment contract tacitly renewed under Art. 346 CO?
Extracted holding
Art. 346 CO distinguishes two cases: tacit renewal by conduct of both parties results in renewal for the same period, but at most one year; renewal due to failure to give prior notice under a contract requiring notice is deemed renewed without such limitation.
Extracted reasoning
The court read the two paragraphs of Art. 346 CO as governing different hypotheses and rejected a uniform treatment. The legislative wording and structure show that paragraph 1 concerns tacit prolongation by both parties, whereas paragraph 2 concerns the absence of required notice.