Best Employment Benefits & Executive Compensation Lawyers in Dornach

About Employment Benefits & Executive Compensation Law in Dornach, Switzerland

Dornach is in the canton of Solothurn and part of the Basel economic area. Employment benefits and executive compensation in Dornach are governed primarily by federal Swiss law, with some cantonal and municipal practices affecting implementation and enforcement. The Swiss Code of Obligations sets the foundation for employment contracts, wages, bonuses, and termination. The Labour Act regulates working time, health protection, and special protections such as night and Sunday work. Social insurance regimes cover old age and survivors, disability, accident, unemployment, and income compensation for maternity, paternity, and military service. Occupational pensions under the BVG LPP are mandatory for eligible employees and form a major component of total compensation. Executive compensation for listed companies is also subject to corporate governance rules in the Code of Obligations that replaced and updated the former Minder ordinance. In practice, local employers in and around Dornach commonly use a mix of base salary, 13th month salary or guaranteed allowances, discretionary or formula based bonuses, long term incentive plans such as options or RSUs, company cars or mobility benefits, and supplemental pension or insurance coverage.

Why You May Need a Lawyer

People seek legal help in employment benefits and executive compensation for several reasons. Executives often need advice when negotiating offer letters, employment agreements, change of control provisions, equity awards, non compete and confidentiality clauses, garden leave provisions, and bonus targets or clawbacks. Employees and employers alike may need guidance on whether a bonus is a contractual salary component or a discretionary gratuity, and how that affects payment on termination. Startups and growth companies frequently need plans and documentation for options or RSUs that align with Swiss tax and social insurance rules. Cross border commuters and relocated staff near Dornach may face complex tax at source, social security coordination, and pension questions. Disputes over overtime, working time exemptions, travel time, or on call compensation are common for managers who sit near the boundary of Labour Act coverage. Companies planning restructurings, mass layoffs, or transfers of business need counsel on consultation duties, timelines, and severance arrangements. Equal pay reviews, discrimination or retaliation claims, and accommodation for illness, pregnancy, or disability often require careful legal assessment. Finally, compliance with data protection in HR systems and governance rules for listed companies needs specialized advice.

Local Laws Overview

Employment contract and termination. The Swiss Code of Obligations governs formation of employment contracts, trial periods, notice periods, non compete clauses, confidentiality, and post termination restrictions. Notice periods commonly range from one to three months depending on seniority and contract terms. Dismissal can be given without cause but must not be abusive. There are blocking periods during which termination is invalid, for example during pregnancy and 16 weeks after birth, and during certain periods of illness depending on length of service.

Working time and overtime. The Labour Act sets maximum weekly hours of generally 45 hours for office, technical, and industrial staff, and 50 hours for other categories. Daily rest is usually 11 hours and Sunday work requires authorization with compensatory rest. Senior executives with significant decision making autonomy may be outside the Labour Act working time rules. Overtime under the Code of Obligations and extra hours under the Labour Act are treated differently. As a default rule, overtime is compensated with a 25 percent premium unless time off of equal duration is granted by agreement. Under the Labour Act, for employees with a 45 hour maximum, the premium becomes mandatory for extra hours exceeding 60 per year unless compensated with time off. Contracts can validly include reasonable flat rate overtime compensation for certain roles except where the Labour Act requires premiums.

Pay, bonuses, and 13th month salary. A 13th month salary is common but only mandatory if agreed by contract or established by practice. Bonuses can be contractual salary components with enforceable targets or discretionary gratuities. For lower and middle incomes, recurring bonuses are often treated as salary and must be paid even on termination. For very high earners, courts may uphold genuinely discretionary bonuses. Clear wording and consistent practice are critical.

Executive compensation governance. For listed companies, the Code of Obligations includes binding shareholder votes on board and executive compensation, rules on advance or retrospective approval, restrictions on certain severance and sign on payments, and transparency in the compensation report. Employment terms for top executives typically avoid excessive notice or non compete consideration that could be seen as prohibited severance. Unlisted companies are not subject to binding say on pay but still must comply with employment, tax, and social insurance law.

Social insurance and benefits. Employers in Dornach must register employees with social insurance for old age and survivors AHV, disability IV, loss of earnings EO, and unemployment ALV. Occupational pension BVG LPP coverage is mandatory above legal salary thresholds, with both employer and employee contributions. Accident insurance UVG LAA is mandatory for occupational accidents for all employees and for non occupational accidents for employees working at least 8 hours per week. Health insurance is mandatory for residents on an individual basis rather than through the employer, although some employers offer supplemental coverage or premium allowances. Family allowances are cantonal and financed by employers through the family compensation fund. The canton of Solothurn administers these allowances.

Leave and protection. Maternity leave is 14 weeks paid at 80 percent of income up to the legal cap under the income compensation scheme. Paternity leave is 2 weeks paid at 80 percent under the same scheme. Adoption leave of 2 weeks is available for the adoption of a child under a specified age. Pregnant and new mothers benefit from health protections under the Labour Act and dismissal protection from pregnancy until 16 weeks after birth.

Equal pay and non discrimination. The Gender Equality Act prohibits discrimination based on sex including equal pay. Companies with 100 or more employees were subject to a time limited equal pay analysis and audit obligation and must inform employees of the results. Even where no audit is currently required, equal pay remains a legal obligation and claims can be brought in court.

Minimum wage and collective agreements. There is currently no general statutory minimum wage in the canton of Solothurn. Sectoral collective bargaining agreements can set binding minimums if declared generally applicable. Employers in Dornach should verify whether a collective agreement applies to their sector.

Taxation and equity plans. Salary, cash bonuses, benefits in kind, and most equity benefits are subject to income tax and social security contributions. For employee options, tradable options are typically taxed at grant while non tradable options are taxed at exercise. RSUs and other restricted shares are commonly taxed at vest. The specifics follow federal guidance and cantonal practice. Cross border commuters with G permits and non residents may be subject to withholding tax at source, with coordination under bilateral agreements with the EU. The canton of Solothurn tax authority administers withholding and ordinary taxation.

Data protection. The revised Swiss Data Protection Act effective September 2023 imposes obligations on employers handling employee data, including transparency, data minimization, security, and processing registers for higher risk activities. HR monitoring must comply with privacy and Labour Act requirements.

Restructuring and transfer of business. Mass layoffs trigger information and consultation duties and specific thresholds apply within a 30 day period. As a guide, 10 terminations in companies with 21 to 99 employees, 10 percent of employees in companies with 100 to 299 employees, or 30 terminations in companies with 300 or more employees. In a transfer of business, employment relationships transfer automatically to the buyer unless an employee objects, and consultation obligations apply if measures are envisaged.

Non compete and confidentiality. Post termination non compete clauses are enforceable only if the employee had access to business secrets or key customer information and the restriction is reasonably limited in time, geography, and scope. Courts can reduce excessive clauses. Confidentiality obligations apply both during and after employment.

Local practice in Dornach and Solothurn. Many employers follow Basel area market practices for benefits and executive pay. Cross border commuting is common, and coordination of social security and taxation for G permit holders is a frequent topic. The cantonal authorities in Solothurn oversee family allowances, labour inspection, unemployment services through the RAV, and cantonal tax matters.

Frequently Asked Questions

How are bonuses treated when I leave my job in Dornach

If a bonus is contractual or has become part of salary through consistent practice, it is usually due pro rata up to the termination date, including during garden leave. Genuinely discretionary bonuses for high earners may not be enforceable. The answer depends on the contract wording, income level, targets, and the employer's past practice.

Am I entitled to a 13th month salary

Only if it is agreed in your contract or consistently paid such that it becomes an implied term. If owed, it is typically prorated on termination.

Are executives exempt from overtime rules

Senior executives with broad decision making authority may be outside the Labour Act working time limits. However, the Code of Obligations overtime rules can still apply unless clearly and lawfully waived or compensated in the contract. Each role must be assessed on its responsibilities and autonomy.

What is the standard notice period for executives

Common notice periods are three months after probation, but the Code of Obligations allows different periods by agreement. Excessively long notice for top executives in listed companies may raise corporate governance concerns. Garden leave is commonly used during notice.

How are stock options and RSUs taxed in Switzerland

Tradable options are generally taxed at grant. Non tradable options are taxed at exercise on the spread. RSUs and restricted shares are typically taxed at vest at the fair market value, subject to available discounts for restrictions. Social security contributions usually apply in line with income tax treatment. Cantonal practice and federal guidance determine details.

Do Solothurn employers have to provide health insurance

No. Basic health insurance is mandatory for residents but is purchased individually. Employers may offer supplemental benefits or allowances, but this is voluntary.

Is there a minimum wage in Dornach

There is no cantonal general minimum wage in Solothurn. Binding minimums may apply if a collective bargaining agreement covers your sector or has been declared generally applicable.

What protections apply for maternity and paternity leave

Maternity leave is 14 weeks paid at 80 percent of salary up to the statutory cap through the income compensation scheme. Paternity leave is 2 weeks on the same basis. Dismissal is prohibited from pregnancy until 16 weeks after birth. Health and safety protections apply under the Labour Act.

What are my rights in a mass layoff

Employers must inform and consult employees or their representatives before implementing a mass layoff. Thresholds depend on the employer's size. Employers must also notify the cantonal employment office. Severance is not generally statutory, but social plans are often negotiated for larger restructurings.

Can my non compete clause be enforced

It can be enforced only if you had access to trade secrets or key client information and the clause is reasonable in time, geography, and scope. Courts can reduce an excessive clause. Monetary penalties in the clause must also be proportionate.

Additional Resources

State Secretariat for Economic Affairs SECO for federal labour law guidance and templates.

Federal Social Insurance Office for information on AHV, IV, EO, ALV, and family allowances.

Swiss Federal Tax Administration for wage tax at source and taxation of equity compensation.

Occupational Pension Supervisory Commission OAK BV for guidance on BVG LPP pension schemes.

Federal Data Protection and Information Commissioner for employer data protection obligations.

Kantonales Amt für Wirtschaft und Arbeit Solothurn for labour market measures and employer services.

Arbeitsinspektorat Kanton Solothurn for Labour Act compliance and inspections.

Ausgleichskasse Solothurn for AHV social insurance and family allowance administration.

Steuerverwaltung Kanton Solothurn for cantonal tax and withholding tax matters.

Regional Employment Center RAV in the canton of Solothurn for unemployment insurance and job placement.

Employer and employee associations such as Schweizerischer Arbeitgeberverband, Unia, and Syna for sector information and support.

Next Steps

Clarify your goals. Identify what you want to achieve, for example a better offer, a compliant incentive plan, payment of a disputed bonus, or a risk assessed restructuring plan.

Gather documents. Collect your employment contract, amendments, bonus plans, equity grant notices, handbooks, payslips, performance reviews, and any emails that reflect agreements or practices.

Assess timelines. Note probation end dates, notice periods, vesting dates, bonus determination dates, consultation timelines for restructurings, and any litigation or limitation deadlines.

Consider your status. Determine whether the Labour Act working time rules apply to your role, whether a collective agreement covers your position, and whether you are a cross border commuter with tax at source.

Seek tailored legal advice. Contact a lawyer experienced in employment benefits and executive compensation in the Dornach and Basel area. Provide a concise summary and your key documents. Ask for an initial assessment, practical options, and a fee estimate.

Plan negotiations and communications. Before you engage your employer or employees, align on strategy and messaging. Use written confirmations for any agreements on pay, bonuses, or equity.

Implement compliance. For employers, review contracts, bonus plan rules, equity documentation, data protection notices, and social insurance registrations. Ensure payroll handles tax and social security on cash and equity correctly in Solothurn.

Follow up and monitor. Track execution of settlement terms, vesting or payment triggers, and post termination obligations such as non compete or confidentiality. Update arrangements when laws or roles change.