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Change of Pension Scheme
Precedential Decision by Judiciary or Regulatory Agency
Author: Ueli Sommer, Partner, Head of Employment – Walder Wyss, Ltd.
The Swiss Federal Court ruled that if a company changes the pension scheme provider without the consultation process required by law, i.e. without having the consent of at least 50% of the workforce, the termination of the contract with the former provider and the new contract with the new provider is null and void. Further, there is a risk that the management who pursued this change becomes (personally) liable for damages of the employees resulting from this. Hence, it is of utmost importance that the process is strictly followed.