Rihm Rechtsanwälte updates

Taxi drivers with central headquarters considered employees for social security purposes
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • December 13 2017

The Federal Supreme Court recently held that independent taxi drivers affiliated with a central headquarters are to be considered employees. Until this decision, taxi drivers connected to their headquarters by follow-up contracts only were considered self-employed. The decision means that drivers will be much better protected in future, although prices will rise for consumers as a result.

Rules tightened on intragroup staff leasing
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • August 16 2017

The State Secretariat for Economic Affairs (SECO) recently issued guidelines focusing on intragroup staff transfers, which often require governmental authorisation based on proven professional qualification and the provision of financial security. According to the SECO, intragroup staff leasing is permissible without a governmental licence only if it is time restricted and occurs occasionally, provides the employee with professional or linguistic experience or serves another specific purpose.

Immediate termination notice in dismissals with cause: how immediate is immediate?
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • August 02 2017

The termination of an employee with cause and without observing a notice period must meet various conditions under Swiss employment law. When an employer obtains reasonably secure and complete knowledge of the grounds for dismissal, it must decide whether to use the right to terminate the employment contract immediately. A consideration period of up to three working days is generally considered appropriate.

How do relocation clauses work in Switzerland?
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • July 26 2017

The place where an employee will perform his or her work is an important yet often overlooked component of employment contracts. Overlooking present and potential work locations of employees could be problematic if a dispute arises since the place of work at the time of a dispute often determines the judicial forum and the applicable employment law.

Supreme Court rules on bonus forfeiture clauses
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • July 05 2017

A high-ranking Geneva bank manager was dismissed in November 2015 following an internal money-laundering investigation. The Canton of Geneva Upper Employment Court awarded the bank manager a damages payment for abusive dismissal, bonuses for 2012 and 2013 and a damages compensation payment for forfeited blocked shares. The Federal Supreme Court held that there had been no abusive dismissal and that the bonuses were no longer owed.

Medical officers remain bound by professional confidentiality rules
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • May 31 2017

The Supreme Court recently ruled that a medical officer called upon by an employer to render a second opinion on the working capability of an employee in case of accident or sickness remains bound by his or her professional confidentiality rules. In other words, without prior authorisation by the employee, the medical officer may express an opinion only on the existence, duration and degree of work incapacity, including the cause of absence.

Flexible compensation models at group management level
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • May 17 2017

Flexible management compensation remains a bone of contention in Switzerland. The board of directors of the Bank of Liechtenstein (LLB) has increasingly seen such discussions as a burden. According to the chairman of the board, in the past LLB's compensation wage regime was linked to net profits. However, this became unsatisfactory. At the beginning of 2013, LLB (which is listed on the Swiss Stock Exchange SIX) introduced a new compensation system.

Switzerland explores extended dismissal protection of older workers
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • April 26 2017

The largest employee group in the Swiss labour market is workers over 50 years old. Trade unions, representatives of this age bracket and lawyers specialising in labour law are therefore demanding increased protection for older workers against age discrimination. Both employee and employer representatives have stated that the federal government's main argument against special protective regulations that fewer staff over 50 years old will be recruited is probably unjustified.

Hospitals in constant violation of mandatory labour laws
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • April 19 2017

In many Swiss hospitals, mandatory labour laws are a 'dead letter': 52% of doctors do not adhere to the maximum weekly working time of 50 hours, which has been in force since 2005. On average, physicians who work full time work 55 hours per week. This is true regardless of whether they are employed by a university, cantonal or regional hospital. In particular, the self-declared workload of assistant doctors and surgeons is exceptionally high.

Internal disciplinary proceedings not required before termination with cause
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • March 29 2017

A staff member of a foreign embassy in Geneva approached two female passport seekers by calling them privately outside regular office hours and inviting them for dinner. The staff member was invited to attend the foreign consul's offices in order to be confronted with the alleged incidents. The Supreme Court held that an employer confronted with a significant violation of employee duties must decide whether to issue an ordinary or extraordinary termination, the decision of which will be binding.

Testing the waters for journalists'​ flexible compensation: more clicks, bigger bonus
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • March 15 2017

A leading media house in Switzerland, the Tamedia Group, has been testing a new compensation model for online journalists. Writers will receive Sfr100 bonuses per quarter for the most clicked (not necessarily read) articles. In addition, the journalist with the highest number of clicks will be paid Sfr800 per trimester, with Sfr500 and Sfr300 paid to the journalists in second and third place. Entire teams will benefit from a Sfr1,500 bonus if they can increase the total number of clicks from the previous month.

Employers obliged to disclose contracts relating to pay and working conditions
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • March 08 2017

In a recently published decision, the Supreme Court held that employers are obliged to disclose employment contracts and other relevant documents relating to pay and working conditions to the 26 so-called 'cantonal tripartite commissions', which serve as control bodies for protection against wage and social dumping in Switzerland.

Uber drivers should be considered entrepreneurs, not employees
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • January 11 2017

Uber is considered by many to be a globally operating transport company with 10,000 employees in approximately 60 countries. Whether an Uber driver is an entrepreneur or an employee affects a variety of legislative areas. If Swiss employment laws apply, the employee has a basic right to perform the agreed-upon work. However, among other factors, under the relative investment comparison test applicable in Switzerland, Uber drivers are not classed as employees, as they cover all other operating costs.

Parliamentary initiative launched to provide flexibility for remote home workers
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • December 14 2016

Following a report issued by the federal government stating that there is no need for legislative action for remote home workers, National Councillor Thierry Burkart launched a parliamentary initiative to provide further flexibility for remote home workers. The initiative has already drawn fierce opposition from major trade unions, even though trade unions and green parties are otherwise in favour of remote home work to further the work-life balance and reduce the daily commute.

'Fat cat' regime – government proposes regulation of top-level management compensation packages
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • December 07 2016

Following the issuance of specific 'fat cat' regulations in 2014, the federal government proposed that fixed and flexible compensation packages of board members and high-ranking management in state-owned enterprises should be regulated by the end of November 2016. Flexible compensation elements (particularly bonuses) can no longer exceed 50% of the fixed salary and fringe benefits cannot exceed 10% of the fixed salary.

Federal government: no need for special remote working legislation
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • November 23 2016

There is an emerging trend towards part-time or even full-time remote work in Switzerland. Due to this emerging trend and in order to address the potential need for more legislative regulation, the federal government recently issued a report which comprehensively reviewed existing employment, data protection and health and safety legislation, including income tax aspects of remote work.

Continuing scepticism over government initiatives on gender wage equality
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • November 09 2016

The consultation process for the federal government's draft bill requiring employers with 50 or more employees to conduct a wage analysis every four years recently closed. Following widespread scepticism regarding the increased wage control mechanisms, it is now proposed that only employers with more than 100 employees fall under the new regime. Certain parliamentarians have also pleaded for an automatic repeal of the proposed new law after 10 years.

Zurich Administrative Court denies salary discrimination for kindergarten teachers
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • September 28 2016

The Zurich Administrative Court recently ruled that female kindergarten teachers were not discriminated against, despite receiving 13% less in salary than male professional apprenticeship teachers. According to the court, the complainants failed to demonstrate that the demands of the job had increased substantially since 1999, when the court had performed a comprehensive review of the classification of female kindergarten teachers.

Additional legislative initiatives for further working time flexibility
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • September 14 2016

It is increasingly evident that labour laws no longer reflect the needs of a modern service society. Switzerland's working hours regime is routinely breached and yet exceptions to the rules are available only in limited cases. Unsurprisingly, a professional alliance of the auditing, trust, IT and public relations sectors wants to adapt the law to ensure that senior employees and highly qualified professionals are no longer limited by maximum working hours and minimum daily rest periods.

Zurich Supreme Court rules on bank secrecy violations and whistleblowing by former banker
Rihm Rechtsanwälte
  • Employment & Benefits
  • Switzerland
  • September 07 2016

The Zurich Supreme Court recently rendered a long-awaited decision regarding a former Swiss banker who had on a number of occasions presented CDs containing bank client data to the media. The court held that Swiss bank secrecy laws had not been violated because the banker had been employed by a Cayman Islands bank. However, the court was unwilling to accept the former banker's defence that that he had acted as a whistleblower.

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