Best Employment Benefits & Executive Compensation Lawyers in Arlesheim

About Employment Benefits & Executive Compensation Law in Arlesheim, Switzerland

Employment benefits and executive compensation in Arlesheim are governed primarily by Swiss federal law, supplemented by cantonal practice and local administrative bodies in Basel-Landschaft. Most core rights and obligations are set in the Swiss Code of Obligations, the Labour Act and its ordinances, and social insurance statutes. For listed companies, Swiss corporate law also sets specific rules on how boards and shareholders approve and oversee executive pay. Because Arlesheim sits in a cross-border economic region, international issues like cross-border work, tax withholding, social security coordination and mobile equity awards are common. Local authorities in Basel-Landschaft supervise workplace health and safety, social insurance administration and unemployment services.

Employees at all levels typically receive base salary, vacation, public holiday entitlements, pension contributions under the mandatory occupational benefits regime, accident insurance and in many cases a 13th salary or variable bonus. Executives may have short and long-term incentives, equity plans, change-in-control protections, non-compete or non-solicit clauses and enhanced benefits. Designing, negotiating and enforcing these arrangements must account for Swiss statutory rules, tax and social security effects, corporate governance and contractual best practices.

Why You May Need a Lawyer

Many people in Arlesheim seek legal help when they face questions about compensation, benefits or senior management arrangements. A lawyer can add value in scenarios such as negotiating an offer or promotion with variable pay and equity, reviewing bonus and target setting mechanics, validating non-compete or non-solicit clauses, setting or enforcing garden leave terms, documenting board or executive employment agreements, handling employee participation plans like stock options or RSUs, and structuring change-in-control or retention packages that comply with Swiss company law.

Employees and executives also consult counsel when facing termination, mass redundancy or transfer of undertaking, especially to preserve rights to salary continuation, bonuses, pro rata variable pay, equity vesting, and to navigate restrictive covenants. Employers often need advice to implement incentive plans, ensure compliant working time and overtime practices, conduct equal pay analyses, handle cross-border commuters and tax withholding, or respond to inspections by the labour inspectorate. In disputes, a lawyer can guide you through conciliation, litigation, mediation and settlements, mindful of strict Swiss deadlines.

Local Laws Overview

Swiss Code of Obligations. Employment contracts, working time duties, vacation, wages, bonuses, expense reimbursement, non-compete clauses, termination and mass dismissal are primarily regulated in the Code of Obligations. Key topics include minimum vacation of 4 weeks per year, 5 weeks for employees under 20, rules on overtime and extra hours compensation, restrictions and enforceability of non-compete clauses, termination with notice and protection periods, abusive termination claims and mass dismissal consultation duties. Transfer of undertaking rules provide for automatic transfer of employment contracts with a right to object.

Labour Act and ordinances. The Labour Act governs working time, rest, night and Sunday work, and workplace health and safety. Senior management with significant decision-making autonomy are generally exempt from working time limits, but still benefit from health and safety protections. Ordinance 3 to the Labour Act restricts employee monitoring systems that track behavior rather than work performance or security needs.

Social insurance and benefits. Mandatory first pillar social security covers old age, survivors and disability. Employers must register employees for AHV-AVS, disability insurance, loss of earnings and unemployment insurance. Occupational pension under BVG-LPP is mandatory above salary thresholds, with minimum contribution and interest rules. Occupational accident insurance is mandatory for all employees, while non-occupational accident insurance is mandatory for employees working at least 8 hours per week. Daily sickness allowance insurance is not mandatory, but widely used to cover salary continuation obligations during illness. Family allowances follow federal minimums, with administration at the cantonal level.

Executive compensation and corporate governance. For Swiss companies with listed shares, the Swiss Code of Obligations requires binding shareholder votes on board and executive compensation, a compensation report subject to audit, and detailed rules in the articles of association for variable compensation, loans, advances and mandate limits. Certain forms of compensation such as severance payments are restricted or banned for listed companies. Compensation committees and transparency requirements are standard.

Equal treatment and pay equity. The Gender Equality Act prohibits sex discrimination and requires employers with at least 100 employees to conduct pay equity analyses at intervals, have them reviewed by an independent auditor and inform staff of the results. Across all employers, equal pay for equal work is a legal requirement.

Data protection. The revised Federal Act on Data Protection applies to employee data. Employers must process personal data lawfully, transparently and proportionately, provide privacy notices, implement security measures and conclude data processing agreements with service providers. Cross-border data transfers require safeguards.

Tax and social security on compensation. Most cash compensation is fully taxable and subject to social security contributions. Many fringe benefits are taxable and subject to contributions unless a specific exemption applies. Equity-based compensation is taxed under special rules. Restricted shares are typically taxed at grant with a discount for blocking, while non-tradable employee options are generally taxed at exercise. Subsequent capital gains for individuals are often tax-free, subject to exceptions. Cross-border commuters and internationally mobile employees require careful source allocation for equity income.

Cantonal and local practice in Basel-Landschaft. There is no cantonal general minimum wage in Basel-Landschaft. Courts apply federal rules on employment, with local conciliation authorities handling most employment disputes first. Family allowances are administered at the cantonal social insurance institution. The cantonal labour inspectorate supervises compliance with the Labour Act at work sites in Arlesheim.

Frequently Asked Questions

How are bonuses treated under Swiss law and can my employer refuse to pay?

Bonuses may be either salary components or discretionary gratifications. If a bonus is promised in clear terms or consistently paid so that the employee can reasonably rely on it, it is often treated as salary and becomes due when targets are met. Purely discretionary gratifications remain at the employer’s discretion, especially for very high earners. The contract wording, target documentation and past practice are critical. If you are in Arlesheim and your bonus was denied, a lawyer can assess whether it is enforceable.

Do managers and executives receive overtime pay in Switzerland?

Under the Code of Obligations, extra hours beyond contractual working time are compensated with time off or pay unless lawfully excluded. Under the Labour Act, statutory overtime above weekly limits must be paid with a premium unless compensated with time off. Senior management with broad decision-making authority are generally exempt from Labour Act working time limits, so they usually do not have statutory overtime claims, though contractual arrangements may apply.

Is a non-compete clause enforceable and how long can it last?

Non-compete clauses must be in writing, protect a legitimate business interest and be reasonably limited in duration, geography and scope. The statutory maximum is 3 years unless special circumstances justify longer. If the employer terminates without cause or the employee resigns for cause attributable to the employer, the restraint typically lapses. Penalty clauses are common, and courts may reduce overbroad restrictions.

What happens to my benefits if my employer transfers the business to another company?

In a transfer of undertaking, employment relationships generally transfer automatically to the new employer with all rights and obligations. You have a right to object to transfer. Occupational pension assets move per the pension plan rules. Employees and their representatives must be informed and consulted in advance on the reasons and consequences of the transfer.

Is severance pay mandatory in Switzerland?

There is no general statutory severance obligation. Limited severance applies in narrow cases, such as for older long-serving employees under legacy provisions that rarely apply today. For listed Swiss companies, corporate law restricts severance payments to executives. Many departures are resolved through negotiated severance that addresses bonuses, variable pay, equity vesting and references.

Can my employer place me on garden leave during the notice period?

Yes, employers can release employees from the duty to work during notice, typically while continuing salary, benefits and any agreed variable pay accruals. For sales or leadership roles, garden leave often supports client protection and confidentiality. Contract terms and plan rules determine how bonuses and equity accrue or vest during garden leave.

How are stock options and RSUs taxed for employees in Arlesheim?

Taxation depends on the instrument. Restricted shares are often taxed at grant, with a discount for blocking periods. Non-tradable options are generally taxed at exercise on the spread. Social security contributions normally apply. Later gains on sale may be tax-free for individuals. International mobility can shift taxation to Switzerland or another country based on workdays during vesting. Plan documents and canton-specific tax practice will influence outcomes, so tailored advice is key.

What are my rights to pay during illness or maternity in Basel-Landschaft?

After probation, the employer must continue salary for a limited period during illness, with the duration set by case law scales that increase with seniority. Many employers buy daily sickness allowance insurance to meet or extend this duty. Maternity leave is at least 14 weeks with 80 percent income replacement through social insurance, with extensions in case of prolonged neonatal hospitalization. Paternity leave is 2 weeks at 80 percent. Adoption and caregiver leave rights also exist under federal law.

Can my employer change benefits or bonus targets mid-year?

Employers may adjust discretionary benefits and targets within contractual and good faith limits. If a benefit or bonus is a contractual right or has become part of salary through consistent practice, unilateral reduction is risky and may be unlawful. For executives, plan and article of association provisions can restrict changes. Significant changes should be agreed in writing.

What deadlines apply if I want to challenge a dismissal or claim a bonus?

To claim abusive termination compensation, you must object in writing before the end of the notice period and file a claim within 180 days after the employment ends. Wage and bonus claims generally have a 5-year limitation period. Many disputes must first go to the conciliation authority in Basel-Landschaft before court. Do not delay, since missing a deadline can forfeit your rights.

Additional Resources

Labour inspectorate Basel-Landschaft for workplace health and safety and Labour Act compliance.

Cantonal social insurance institution SVA Basel-Landschaft for AHV-AVS, family allowances and contributions.

Occupational pension and foundations supervisory authority for Basel-Stadt and Basel-Landschaft.

Regional employment centers RAV Baselland for unemployment benefits and job search support.

Compensation and corporate governance matters under the Swiss Code of Obligations, including shareholder votes on executive pay for listed companies.

State Secretariat for Economic Affairs SECO for federal guidance on labour law and working time.

Federal Office for Gender Equality for information on equal pay and discrimination.

Swiss Accident Insurance institutions, including SUVA and private insurers, for accident coverage matters.

Basel-Landschaft tax administration for salary certificate and withholding tax guidance.

Cantonal data protection authority Basel-Landschaft for employee data processing obligations.

Next Steps

Clarify your objectives. Write down your goals, such as enforcing a bonus, negotiating an executive package, revising a plan, or resolving a dispute after termination. Identify what a good outcome looks like for you.

Collect documents. Gather your employment contract, bonus or commission plans, equity grant agreements, pension plan booklet, staff handbook, performance communications, pay slips, salary certificates, termination letters, and any emails that set targets or promises.

Map the timeline. Note hire dates, promotions, target communication dates, performance periods, grant and vesting dates for equity, illness dates, notice periods and any objections you made. Timelines are crucial to preserve claims.

Assess cross-border elements. If you live or work across borders or changed tax residence, identify days worked in each country during bonus or vesting periods and collect relevant permits and tax withholding records.

Seek legal advice early. Contact a lawyer experienced in employment benefits and executive compensation in Basel-Landschaft. Early advice helps you avoid missed deadlines and improves negotiation leverage.

Consider conciliation. Most employment disputes in Basel-Landschaft start at the conciliation authority. A lawyer can represent you, prepare a settlement proposal and protect your rights if talks fail.

Negotiate and document. Many cases resolve by agreement. Ensure any settlement covers salary, bonuses, pro rata variable pay, equity, references, non-compete scope, garden leave and mutual releases. Put everything in a signed document.

This guide provides general information for Arlesheim, Switzerland. It is not legal advice. For a reliable assessment of your situation, consult a qualified employment lawyer familiar with local practice in Basel-Landschaft.