SWITZERLAND Law and Practice Contributed by: Liburn Mehmetaj, Roxane Allot and Andreas Hösli, Walder Wyss Ltd
responsible person(s), which primarily targets members of the company board. Unlike some due diligence laws in other countries, Swiss due diligence law does not provide a civil cause of action to victims of harm resulting from a com - pany’s failure to perform due diligence. In January 2025, a coalition of over 90 human rights, environmental and aid organisations launched a new “Responsible Business Initia- tive” , which is broadly based on the model of the EU Corporate Sustainability Due Diligence Directive (CSDDD). 2.2.3 Modern Slavery Legislation Unlike some other jurisdictions, Switzerland has not adopted a single comprehensive “Modern Slavery Act” , but it addresses modern slavery (forced labour, human trafficking, and related practices) through its criminal law, due diligence obligations, and targeted measures. Human trafficking is penalised in Article 182 of the Swiss Criminal Code, which prohibits the trafficking of persons for purposes of sexual exploitation, labour exploitation, or organ remov - al. The provision is broadly construed, covering anyone who, as a supplier, intermediary or cus - tomer engages in the trafficking. The penalties are severe, reflecting the gravity of the crime. A human trafficking offence is punishable by up to several years of imprisonment (and/or financial penalties). If the victim is a minor or the per - petrator acts for commercial gain as part of an organised operation, a custodial sentence of at least one year is mandatory. To improve efforts, the government has adopted National Action Plans against Human Trafficking, most recently for 2023-2027, to bolster victim identification, training, and inter-agency co-ordi - nation. Victims of trafficking in Switzerland have
access to support services, legal aid, and can seek compensation under the Federal Act on the Assistance to Victims of Crime. In addition, Swiss labour law strictly prohibits exploitative labour conditions. The Swiss Fed - eral Constitution guarantees personal freedom. There are stringent restrictions on the employ - ment of young persons: under the Labour Act and its ordinances, employment of children below 15 is generally prohibited (with limited exceptions for light work for teenagers), and hazardous work by youths is illegal. Violations of labour laws (for example, employing underage workers or violating safety regulations) can lead to severe administrative and penal sanctions against the employer. Switzerland has not adopted a law impos - ing a specific import ban on goods produced with forced labour (such as Regulation (EU) 2024/3015), although the matter has been dis - cussed by the Federal Parliament. For the time being, in the area of child labour, due diligence requirements apply (see 2.2.2 Corporate Human On 1 January 2022, Switzerland enacted, in its Code of Obligations (Article 964a et seq. CO), new requirements for companies concerning the transparency of non-financial information. These obligations are based on the model of the EU Non-Financial Reporting Directive of 2014 (NFRD) and were introduced following the rejection of the Responsible Business Initiative in 2020 (see 2.2.2 Corporate Human Rights Due Diligence Legislation ). In line with the (now outdated) NFRD, the reporting requirements are referred to as “Non-Financial Reporting” obliga - tions (Articles 964a–964i CO). In-scope compa - Rights Due Diligence Legislation ). 2.2.4 Transparency and Reporting Requirements
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