I didn't quite know how to answer but you've hit the nail on the head. Thanks!
I agree. In Switzerland employment law is governed by the code des obligations, or for the parent poster who asked in the first place, Obligationenrecht. There are various notice periods, 1 week in the first 3 months, 1 month for the first year and so on. An employer isn't required to give a reason for dismissing someone either.
I think it is entirely a people issue.