Insights
Terminating a Swiss Employment Contract - What You Need to Know
Even startups and growing companies sometimes need to dissolve an employment contract. However, before giving notice the party doing so should be clear exactly how and on what grounds an employment relationship can be terminated lawfully.
An Essential Guide to the Legal Framework for Digital Shares
The latest changes to securities and corporate law enable Swiss companies to digitize many company law procedures. Digital shares and smart contracts allow share transfers and shareholder agreements to be largely programmed and executed automatically.
How Employees Can Share in a Startup’s Success
Commissions, revenue sharing, phantom shares, or employee shares? Deciding which form of success-based remuneration is most suitable depends upon several factors. Knowing the legal framework can help find the right model.
Social Security Court Holds that Uber-Drivers Are Employees
Platform and app operators like Uber typically see themselves as mere intermediaries between service providers and end customers. The criteria that must be met in order for service providers to qualify as self-employed for social security purposes were laid down in a recent judgment from the Zurich Social Security Court.
Swiss Federal Court Rules on Selling of Seized Crypto Assets
If seized assets in criminal proceedings are liquidated before a court has rendered a final decision, the prosecuting authorities must ensure that they are liquidated in a way that has as few negative ramifications as possible on the proceeds they can generate. If the criminal justice authorities do not have the requisite knowledge for this, they must appoint an external expert.
Blockchain, Tokenization and Raising Capital: What to Bear in Mind when Issuing Utility Tokens
The regulatory provisions that need to be taken into account when issuing and managing tokens depend on how those tokens are classified in law. Even tokens that appear to be typical Utility Tokens can, on closer inspection, serve economic purposes that go beyond mere utility.
Sole Proprietorship, Limited Liability Company or Company Limited by Shares? What Startups Ought to Know
For anyone looking to found a company, there are a range of potential legal forms available under Swiss law. On closer examination, however, only a few of these forms will typically be viable. The appropriate form is determined by the number of stakeholders, the size of the company and the seed capital available.
5 Tips for Drawing up General Terms and Conditions
General terms and conditions are standardized contractual provisions that apply to a large number of similar customer relationships. Besides the general principles for drafting contracts, there are some specific points that need to be considered when drafting general terms and conditions. An important one is that stricter requirements apply if the other party is a consumer.
Bankruptcy Due to Lack of Organization: Companies Without a Valid Domicile Are at Risk of Court-ordered Dissolution
Every Swiss company must have a legal domicile that is entered in the commercial register. If no mail can be delivered to the registered address or if no new domicile is registered after deletion, this constitutes an “organizational defect” which can lead to the liquidation of the company under bankruptcy law.
Update on Covid-19 and Rent Reductions: Switzerland’s First Court Rulings Are in
In the absence of clear statutory rules, a case-by-case assessment is needed to decide whether or not a commercial rent can be reduced due to Covid-related restrictions on business operations. For a court to order the amendment of a contract in line with changed circumstances, strict requirements need to be met and the specific circumstances must always be taken into account.
Authorized Capital Increase: What Rights Do Minority Shareholders Have?
With an authorized capital increase – and in the future a “capital band” – the board of directors is authorized to change the share capital within a certain period of time. If existing shareholders are unable or unwilling to participate in a capital increase, their shares will be diluted. The specific circumstances will determine whether and how minority shareholders can protect themselves.
Four Questions Startups Have about how to Structure Employment Contracts
Flexible working models are in demand at startups and small companies. Whether the working relationship takes place within the scope of a traditional employment relationship or another service contract will have a number of legal consequences. The pros and cons of the various options should be carefully weighed.
What Founders Need to Know about Shareholders’ Agreements
The parties involved in drawing up a shareholders’ agreement have a great deal of leeway when it comes to its contents. They must also consider the risk and consequences of a breach of contract. As technology advances, we are increasingly seeing “smart” solutions for shareholders’ agreements that ensure contracts can be performed, alongside the use of traditional legal remedies.
More Paid Leave to Care for Children and Relatives
In 2021, care leave for employees in Switzerland is being extended in several different ways. Besides two-week paternity leave, they will be able to take additional paid leave days to care for sick relatives. As of July 1, 2021, parents of seriously ill children will also be entitled to up to 14 weeks of care leave.
What Translation Agencies Need to Know about Data Protection
If a translation contains personal data, data protection law will apply. In this context, both translation providers and clients should always be aware of their role to protect data and also their associated obligations under the law.
Founding a Company Using Crypto and Foreign Currencies
Founding a Swiss company using crypto capital is already possible today. The legal requirements are though stricter compared with making a cash contribution in Swiss francs, and potential exchange rate fluctuations must be taken into account. The revised corporate law will make capital contributions more flexible and also open the door to foreign currencies.
Smart Contracts and Formal Legal Requirements
Fulfilling a contract is not always a smooth process, and this is no less true of "smart” contracts. For a contract to be legally valid and also enforceable in the analog world, certain formal requirements need to be met. And this should be also considered when using smart contract solutions.
Swiss Federal Supreme Court Says Uber Switzerland Does Not Have to Pay UberPop Drivers Retirement Benefits
The Federal Supreme Court has decided in the Uber case that Uber Switzerland GmbH does not have to pay social security contributions for the employees of a foreign group company. This provides greater legal certainty about employer status under social security law.
The Virtual Shareholder Meeting Becomes a Legal Reality
The revised Swiss company law allows virtual shareholder meetings and enables company formation, capital increases or other shareholders’ resolutions via video conferencing. While the law is not expected to enter into force before 2022, parts of it have already been implemented under temporary Covid-19 provisions.
Bonus Pay in Switzerland - Discretionary or Not?
When an employment contract is terminated, disagreements about bonus payments may arise. A recent decision by the Federal Supreme Court better clarified under which circumstances bonus payments are subject to the employer’s discretion.