Certified Specialist SBA Employment Law

In labor law, the principle of “no work, no pay” applies. This means that the employee generally bears the risk of loss of wages, and the employer is not obligated to pay wages if the employee is prevented from performing work.

In a decision dated January 19, 2026 (9C_96/2024), which is scheduled for publication, the Federal Supreme Court ruled for the first time on the taxation of compensation for unlawful termination without notice. Back in 2022, the Federal Supreme Court classified compensation for wrongful termination as tax-exempt satisfaction (BGE 148 II 551).

In addition to adjustments to the OECD Model Tax Convention detailed provisions regarding cross-border employments shall be implemented in the protocol of the double tax treaty.

In Switzerland, taxes are levied at federal, cantonal and municipal level. This is, in particular, the case with income and capital taxes for legal entities and income and wealth taxes for individuals. The tax burden between the cantons and also between municipalities within the same canton may vary considerably.

The acquisition and sale of treasury shares by companies limited by shares raise several questions regarding taxation in Switzerland in connection with income, capital, withholding and value-added taxes as well as stamp duties. The Swiss Federal Supreme Court answered some of these questions in recent decisions. Some of the relevant tax issues regarding treasury shares are outlined below.

The party Juso (young socialists) managed to collect sufficient signatures for a popular initiative to implement a new inheritance and gift tax on the federal level. This means that the Swiss citizens can decide on a popular vote about the implementation of this initiative, probably in 2026 at the earliest. If the initiative will be accepted, estates from deceased persons and gifts exceeding CHF 50 million will be subject to a tax of 50%. At this time, it can be assumed that the initiative will not be accepted. Most of the political parties reject it. However, there is no 100% guarantee for this and affected individuals should consider measures for the avoidance or reduction of such new tax.