Best Employment Benefits & Executive Compensation Lawyers in Arlesheim

About Employment Benefits & Executive Compensation Law in Arlesheim, Switzerland

Employment benefits and executive compensation in Arlesheim operate within the Swiss federal framework, with some cantonal features that affect taxes, procedures, and authorities. Most core rules are set by the Swiss Code of Obligations, the Labour Act, and social insurance statutes that apply nationwide. Basel-Landschaft, the canton where Arlesheim is located, administers tax at source for certain foreign employees, family allowances, and dispute resolution through local courts in the Arlesheim district.

Switzerland combines contractual freedom with mandatory employee protections. Employers can tailor packages that include base pay, 13th month salary, short and long-term incentives, benefits, and perquisites, provided they respect statutory minimums and public policy. Executives often receive bonuses, share-based awards, non-compete arrangements, and enhanced severance mechanics, while broad compliance duties apply to data protection, equal pay, working time, and social security. Listed companies face additional binding rules on executive pay and shareholder approvals. Cross-border commuting in the tri-region around Basel is common, so tax and social insurance coordination often plays a central role in structuring compensation.

Why You May Need a Lawyer

You may need legal help when you are negotiating an employment contract or executive package that includes bonuses, commissions, equity awards, or non-compete clauses and you want to ensure enforceability and favorable terms. Counsel is valuable when terminating or being terminated, including assessing notice periods, garden leave, bonus entitlement on exit, and the validity of restrictive covenants. Lawyers assist with equity plan design and taxation of shares, options, and RSUs, especially for mobile or cross-border employees. Employers benefit from advice on equal pay compliance, working time recording, overtime compensation, occupational pensions, and expense policies. Disputes over unpaid bonuses, stock vesting, wrongful termination, or non-compete enforcement are best handled with legal strategy. For listed companies or large private groups, counsel helps navigate Swiss corporate pay rules, shareholder approvals, and disclosure. Finally, if you commute from France or Germany or if your workforce is international, coordination of permits, tax at source, and social security requires specialized guidance.

Local Laws Overview

Contracts and termination are governed by the Swiss Code of Obligations. Default notice periods are one month in the first year, two months from year two to nine, and three months thereafter, unless a different arrangement is validly agreed. Termination is generally at will with notice, but protections apply against abusive dismissal and during blocking periods such as illness, accident, pregnancy, and military service after probation ends. To claim abusive dismissal compensation, the employee must object in writing before the end of the notice period and file suit within 180 days after the employment ends.

Working time and overtime are governed by the Labour Act and ordinances. The statutory weekly maximum is typically 45 hours for office, technical, and industrial employees, and 50 hours for many others. Hours beyond the agreed contract time are overtime under the Code of Obligations, and hours beyond the statutory maximum are additional overtime under the Labour Act with premium pay rules. Employers must keep records of working time. Limited waivers or simplified recording are possible for certain high autonomy staff under specific conditions and often require a collective bargaining basis.

Vacation is at least four weeks per year and at least five weeks for employees under age 20. Public holidays are set by the canton and may impact paid time off. A 13th salary is common but only mandatory if agreed in the contract or applicable collective agreement. Expenses must be reimbursed in line with the Code of Obligations and recognized expense regulations, with tax guidance defining what is taxable versus tax free.

Social insurance involves multiple pillars. The first pillar includes old age and survivors insurance, disability insurance, and loss of earnings insurance, with combined contributions shared by employer and employee and rates subject to change. Unemployment insurance applies up to an annual salary ceiling with a solidarity contribution above that ceiling. Mandatory accident insurance covers occupational accidents for all employees and non-occupational accidents for employees working at least eight hours per week; employers pay the occupational portion and employees usually finance the non-occupational portion through payroll deduction. Occupational pensions under the BVG LPP are mandatory for eligible employees above the annual earnings entry threshold, with coordinated salary caps and age based contributions. Health insurance is mandatory for residents but is privately arranged by individuals rather than employer sponsored.

Collective redundancies trigger consultation duties and timelines. For businesses with 20 to 100 employees, a mass dismissal is 10 terminations within 30 days. For 100 to 300 employees, it is 10 percent of the workforce, and for more than 300 employees, it is 30 terminations. Employers must inform and consult employees and, for larger companies with at least 250 employees dismissing at least 30 employees within 30 days, a social plan must be negotiated.

Executive compensation for listed companies is regulated by the revised Swiss corporate law provisions integrated into the Code of Obligations. Shareholders must approve board and executive remuneration, certain payments like severance and advance compensation are prohibited, and the company must observe specific governance and transparency rules. Non listed companies have more flexibility but must still comply with wage protection, equal treatment, tax, and social insurance rules.

Bonuses and variable pay are characterized by Swiss case law. For lower to mid range salaries, variable pay that is an essential part of compensation is generally owed if targets are met or if conditions indicate it is not discretionary. At very high income levels, a bonus can be a discretionary gratuity provided the base salary is sufficient, but clear drafting and consistent practice are crucial to avoid disputes. Pro rata payments on exit often depend on contract language and whether targets were met or performance periods are complete.

Equity incentives are common for executives. Taxation generally occurs for restricted shares at grant, often with a valuation discount for restrictions. Non tradable options are typically taxed at exercise, while tradable options are taxed at grant, and RSUs are taxed at vesting. Social security contributions usually apply. Internationally mobile employees may face double taxation and apportionment issues, and cross border commuters around Basel require attention to treaties with Germany and France, tax at source in Basel-Landschaft, and social security coordination rules.

Non compete and non solicitation clauses are permitted but must be narrowly tailored. They require access to confidential information or clientele, must be limited in geography, scope, and time, and are typically capped at three years unless special circumstances justify a longer period. Penalty clauses can support enforcement. Courts may reduce overly broad restrictions. Garden leave is common to protect business interests while running out a notice period, but employees generally retain rights to compensation and certain benefits during garden leave unless agreed otherwise and lawful.

Equal pay is mandated by the Federal Act on Gender Equality. Companies with 100 or more employees must periodically conduct an equal pay analysis, have it externally reviewed, and share results as required. Discrimination based on sex, including pregnancy, is prohibited in employment. Broader anti discrimination protections exist in public and criminal law, with specific employment protections strongest for gender based issues.

Data protection for HR information is governed by the revised Swiss Data Protection Act effective 2023, which imposes transparency, purpose limitation, minimization, and security obligations. Cross border transfers of employee data require an adequate basis, and special rules can apply to sensitive data and monitoring. Whistleblowing has no comprehensive statute, so internal reporting frameworks must balance the employee duty of loyalty and confidentiality with compliance requirements and public interest considerations.

Arlesheim specific practicalities include interaction with the Zivilkreisgericht Basel-Landschaft West for conciliation and first instance civil proceedings in local employment disputes, the SVA Basel-Landschaft for social insurance and family allowances, and the cantonal tax office for tax at source and individual taxation. These bodies apply federal law with cantonal procedures and deadlines.

Frequently Asked Questions

What benefits are mandatory in Switzerland and which are discretionary?

Mandatory benefits include social insurance contributions to the first pillar, unemployment insurance, accident insurance, and occupational pensions for eligible employees. Minimum vacation, public holiday pay as per canton, and expense reimbursement rules also apply. Health insurance is mandatory for residents but is individually arranged. Discretionary benefits include 13th salary if not contractually agreed, most bonuses, equity awards, company car, and supplemental private insurance or perquisites.

How are bonuses treated if I resign or I am terminated before year end?

The answer depends on contract language, plan rules, past practice, and case law. If a bonus is an integral part of remuneration and not a pure gratuity, a pro rata payment may be due when targets are met or when the performance period has effectively been completed. For high earners where the bonus is categorized as discretionary, the employer may retain discretion, but consistent and clear plan terms are critical. Object to non payment promptly and seek advice, as deadlines and evidence matter.

Are non compete clauses enforceable in Basel-Landschaft?

Yes, but only within strict limits. They require access to trade secrets or clientele, must be reasonable in time, scope, and territory, and usually cannot exceed three years. Courts can reduce or refuse enforcement if the restriction is too broad. Penalty clauses and garden leave may affect practical enforceability. Proper drafting that ties the restraint to legitimate business interests is essential.

How are stock options, RSUs, and employee shares taxed?

Restricted shares are usually taxed at grant with a discount for restrictions. Non tradable stock options are generally taxed at exercise, while tradable options are taxed at grant. RSUs are typically taxed at vesting. Social security contributions often apply. For cross border or mobile executives, taxation may be apportioned across jurisdictions, and double tax relief rules and treaties with France or Germany may affect the final outcome.

What notice periods apply and can I be put on garden leave?

Default notice is one month in the first year, two months from years two to nine, and three months thereafter, unless a different valid arrangement is in place. Garden leave is common to protect business interests during notice. During garden leave, salary and core benefits continue unless lawfully modified, and eligibility for variable pay depends on plan rules and case law.

Do I have to record my working hours as an executive?

Working time must generally be recorded. Certain high autonomy employees may be eligible for simplified or waived recording under strict conditions, often requiring a collective bargaining framework, specific salary thresholds, and documented consent. Even then, maximum working time, rest periods, and health protection rules still apply.

What equal pay obligations do employers have?

Equal pay for men and women for work of equal value is mandatory. Companies with 100 or more employees must perform an equal pay analysis at set intervals, have it audited by an approved body, and inform employees and, for listed companies, shareholders. Employees who believe they are underpaid compared to the opposite sex can seek legal remedies and back pay.

How are cross border commuters around Arlesheim treated for tax and social security?

Tax and social security depend on residence, permit type, and treaty rules. Many cross border commuters from France or Germany are taxed at source in Basel-Landschaft with treaty adjustments in the residence country. Social security is usually tied to the place of work under EU and Swiss coordination rules with certificates of coverage as needed. Equity income and bonuses may require allocation across workdays in different countries.

What maternity, paternity, and adoption benefits apply?

Maternity leave is at least 14 weeks with income compensation subject to statutory caps, and protection against dismissal applies during pregnancy and maternity leave. Paternity leave offers two weeks of compensated leave. Adoption leave of two weeks applies for the adoption of a child under a specified age. Employers can offer enhanced contractual benefits beyond statutory minimums.

What happens in a mass redundancy and is a social plan required?

Collective dismissals trigger information and consultation duties with employees or their representatives. Thresholds depend on workforce size and number of terminations within 30 days. Companies with at least 250 employees terminating at least 30 employees within 30 days must negotiate a social plan. Failure to follow process can expose the employer to legal risk, so early legal advice is recommended.

Additional Resources

State Secretariat for Economic Affairs SECO for guidance on working time, overtime, collective redundancies, and short time work.

Federal Office for Social Insurance BSV for first pillar, occupational pensions, maternity and paternity allowances, and coordination rules.

SVA Basel-Landschaft Ausgleichskasse for local social insurance administration and family allowances.

Kantonale Steuerverwaltung Basel-Landschaft for tax at source, individual tax matters, and employer withholding obligations.

Federal Tax Administration for guidance on employee benefits, expenses, and equity taxation circulars.

SUVA and other accident insurers for occupational and non occupational accident insurance obligations.

Zivilkreisgericht Basel-Landschaft West in Arlesheim for the conciliation authority and first instance civil court handling local employment disputes.

Economiesuisse Swiss Code of Best Practice for corporate governance and executive pay practices for listed companies.

Data Protection and Information Commissioner of the Canton and the Federal Data Protection and Information Commissioner for HR data processing and cross border transfers.

Local employer and industry associations and recognized audit bodies for equal pay analyses and reviews.

Next Steps

Document your situation clearly. Collect your employment contract, bonus or commission plan rules, equity plan documents and grant notices, expense policies, working time records, performance reviews, and any relevant emails or messages. For cross border matters, gather residence and permit details, travel calendars, and prior tax assessments.

Map your timelines. If you received notice of termination, calendar the end of the notice period and any deadlines to object to an abusive dismissal in writing. Wage and bonus claims generally have a five year limitation period, but do not wait, as practical evidence can be lost and some claims have shorter procedural steps.

Assess your objectives. Decide whether you want to negotiate improved terms, secure a pro rata bonus or accelerated vesting, limit or narrow a non compete, or challenge a termination. Employers should define compliance priorities, such as equal pay analysis, working time recording policies, and equity plan updates under tax and social insurance guidance.

Consult a local employment lawyer in or near Arlesheim. A practitioner familiar with Basel-Landschaft procedures, the Zivilkreisgericht West conciliation process, and cross border issues can evaluate your case or structure your compensation plans to minimize risk and tax leakage. Ask about likely outcomes, costs, and a negotiation strategy before litigating.

Coordinate tax and social insurance. For executives with equity or cross border activity, align payroll, tax at source, social insurance contributions, and mobility policies. Employers should ensure payroll knows how to treat bonuses, equity events, and expense allowances, and employees should review personal tax filings for consistency.

Update contracts and policies. Ensure that bonus and equity plan terms clearly address eligibility, performance conditions, termination events, malus and clawback, and treatment during garden leave. Review non compete and non solicitation clauses for narrow tailoring. Confirm expense and working time policies reflect current law and practice.

This guide is informational only and not legal advice. Laws and thresholds change. For a reliable assessment tailored to your facts in Arlesheim, consult a qualified Swiss employment lawyer.