Complete Guide for Legal and Responsible Management of Your Swiss company
In the complex world of business management, adherence to legal obligations is essential to avoid potentially damaging consequences. This document aims to provide you with an in-depth understanding of these obligations, shedding light on the legal implications of each aspect.
Employer’s Obligations Regarding Social Security Contributions
As an employer, you are responsible for paying the required social security contributions for your employees. This includes contributions for AVS (Old Age and Survivors Insurance), AI (Invalidity Insurance), APG (Loss of Earnings Compensation), AC (Unemployment Insurance), LAA (Accident Insurance), maternity, family allowances, and LPP (Occupational Benefit Plan). It is crucial to deduct these contributions from employees’ salaries and pay them to the relevant authorities in accordance with the law.
For example, Article 14, paragraph 1 of the Federal Law on Old Age and Survivors’ Insurance (LAVS) stipulates this obligation, as do Articles 34 and following of the Regulation on Old Age and Survivors’ Insurance (RAVS) and Article 112, paragraph 1 of the Federal Law on Accident Insurance (LAA). Failure to comply with these obligations exposes the employer to legal violations, including the failure to pay social security contributions, which constitutes a criminal offense under Article 159 of the Criminal Code (CP).
Accounting Obligations
As a business owner, you are required to maintain accounting records in accordance with the provisions of the Code of Obligations (CO), including Articles 957 and following. This includes keeping accounting records, preserving supporting documents, and presenting annual reports in accordance with Article 958f of the CO. Failure to comply with these obligations can also have legal consequences, including offenses related to bankruptcy and mismanagement, as defined in the Criminal Code.
Responsibilities of Company Administrators or Managers
If your business is incorporated as a legal entity, as an administrator or Swiss director, you are legally obligated to act faithfully in the interests of the company. This includes proposing remedial measures in case of financial difficulties and notifying the court in case of over-indebtedness, in accordance with the relevant provisions of the Code of Obligations. Failure to comply with these obligations can result in criminal and civil consequences, including personal liability of administrators or managers for damages caused to the company.
Legal and Financial Consequences of Non-Compliance with Obligations
Failure to comply with legal obligations exposes not only the company to criminal sanctions but can also engage the personal liability of directors and administrators, with significant financial consequences, including the possibility of having to repair the damage caused. Ensuring a healthy and responsible management of your business involves scrupulous compliance with applicable legal obligations. This document highlights the main obligations and the legal consequences of non-compliance, emphasizing the crucial importance of compliance for the long-term viability of your business.
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