Legal in Tax and Legal blog
The end of the transition period for companies limited by shares – is your company compliant?
On 1 January 2023 the reform of Switzerland’s legislation on companies limited by shares came into force, responding to the current economic environment and needs. Companies incorporated after this date have been required to comply with the new provisions from the outset. Those already in existence on the date were granted a two-year transition period to adapt their articles of association. With that transition period set to expire on 31 December 2024, the aim of this blog post is to provide an overview of the most relevant changes.
New Climate Protection Ordinance creates incentives to tackle net-zero targets
On 18 June 2023 the Swiss electorate approved the Climate Protection and Innovation Act (CPA). The act was accepted as counterproposal to the popular Glacier Initiative and is set to take effect on 1 January 2025. The CPA mandates that Switzerland should achieve net-zero emissions by 2050 in the building, transport, and industrial sectors. To achieve this objective, the CPA provides that the Swiss State will offer funding to companies that develop and utilise innovative technologies. The specific details of these funding programmes and incentives are outlined in the Climate Protection Ordinance (CPO), whose consultations have just ended, on 1 May 2024.
This blog focuses on the funding available to companies pursuing innovative technologies and briefly discusses the eligibility criteria, explores the projects that meet the qualifications for funding, and outlines the process to become eligible for funding.
Training your chatbot correctly – What are the legal implications of a chatbot that provides wrong information?
The emergence of new technologies, including the widespread use of artificial intelligence in everyday life, has significantly affected the legal landscape. The use of chatbots in online contracting, coupled with the now well-known phenomenon of artificial intelligence hallucinations – incorrect or misleading results derived from AI – has resulted in novel challenges, notably in the realm of contract law. As a result, the courts and tribunals must adapt to this new reality and grapple with issues such as determining liability where a customer contracts on the basis of inaccurate information provided by a chatbot on a company’s website.
How does the EU's revised Proposal for a Corporate Sustainability Due Diligence Directive impact Swiss & international business?
After prolonged negotiations, the European Parliament officially adopted the Corporate Sustainability Due Diligence Directive (CSDDD) in a significantly scaled-down version in its plenary vote on April 24, 2024.
Essentially, the EU Directive applies to EU-based and international companies that meet certain criteria on size, such as the number of employees and/or turnover. Additionally, it extends to companies that are direct or indirect business partners of the entities falling within the scope of the Directive. The primary focus is on the chain of activities of companies by imposing due diligence obligations on the entities within scope and their business partners to address potential adverse human rights and environmental impacts.
Even if a Swiss or international company is not directly subject to the requirements of the Directive, it is advisable to review the business relationships and proactively implement human rights and environmental due diligence processes considering international standards, and to enhance transparency along the value chain. This will enable companies to meet the demands of their European customers, maintain competitiveness, and enhance their level of preparedness for future legislations in this field.
Cross-border posting of workers from and to Switzerland: A legal approach
As Switzerland is not an EU-Member-State, the EU-PWD-Regulations are not applicable on postings from and to Switzerland. Instead, Swiss statutory law regulates the legal requirements as well as the applicable minimum standards for a posting to Switzerland and sets the mandatory notification process.
As different laws apply to the two models, the posting is to be differentiated from the staff leasing in Switzerland. This article provides a short overview on the distinctions between postings and staff leasing in Switzerland and delivers guidance for international assignments to companies.
Legal landscape of AI regulations in the European Union and Switzerland
The rapid and widespread adoption of artificial intelligence (AI) systems (and generative AI in particular) has been one of the major topics discussed over the past few years by the public and, to some extent, by legal scholars and legislators.
Although this technology is still recent, successful use cases can be found across all industries and allow businesses to create new opportunities or to streamline and simplify their current processes. However, companies must understand and manage the legal risks they are exposed to when they use AI systems in their activities. This may be challenging as national legislations have not caught up yet with this new technology and may be tempted to adopt different regulatory approaches, complexifying the international legal landscape companies will have to navigate.
In this article, we will provide a short overview of the EU and Swiss regulatory legal landscape on the use of AI systems as well as of the other common legal risks that arise from their use (intellectual property, data protection, contractual liabilities).
12th Package of EU Sanctions against Russia – Here’s what you need to know
The 12th package of EU-Russia sanctions, adopted on 18 December 2023, adds comprehensive new measures to the existing Russia sanctions regime. Notably, these sanctions include an import prohibition on diamonds sourced from Russia, and the obligation for EU exporters of sensitive goods and technology to contractually prohibit re-exports to Russia. Additionally, a considerable number of new individuals were listed, alongside 29 additional entities restricted for their direct support to Russia’s military and related industries involved in the conflict in Ukraine. New enforcement and anti-circumvention measures have been introduced, with tighter compliance rules aimed at aiding the implementation of the price cap on crude oil and petroleum products and restricting the provision of crypto asset management services. It should also be noted that Switzerland has been designated as a partner country concerning measures related to iron and steel. Here’s what you need to know:
CBAM: are you ready to comply?
1. What is CBAM?
The Carbon Border Adjustment Mechanism (CBAM) is a regulation pushed by the EU in the context of the EU Green Deal.
Under CBAM, Importers into the EU must pay a financial adjustment for the emissions released during the production of certain carbon-intensive goods in third countries.
The goal of the legislation is to mitigate the risk of carbon leakage and ensure the effectiveness of EU climate measures.
Revised Swiss Data Protection Law: Missed 1st September deadline? Set your company on the compliance path
As of September 1st, 2023, the entry into force of the revised Swiss Data Protection Act (hereafter “nFADP”), requires Swiss companies to immediately be compliant and strengthen data protection obligations.
If you suspect your business is behind on its data protection compliance responsibilities, rest assured, it is not (yet!) too late. Whether your company is a beginner when it comes to data protection or already has a solid foundation in place, this high-level roadmap will help you conduct your business in compliance with the nFADP. In addition, if you would like to know more about the main changes introduced by the nFADP, please check our latest article on this subject.
A guide to pre-insolvency and insolvency proceedings across Europe
The events in the last few years have had significant and lasting impacts on business in general and restructuring in particular, with the latter referring to the various options available for firms experiencing difficulties. European economies, hit by both the upheavals caused by the health crisis and geopolitical tensions, have also been affected by the various support policies adopted by governments.