SWITZERLAND Law and Practice Contributed by: Liburn Mehmetaj, Roxane Allot and Andreas Hösli, Walder Wyss Ltd
In addition to piercing the corporate veil, a par - ent company may be held directly liable if it is found to have breached its own duties – eg, Arti - cles 41 or 55 CO, or Article 28 Civil Code (see 3.1 Criminal and Civil Corporate Liability ). In principle, the separation of legal entities also applies in criminal law. However, in prac - tice, the separation between legal entities is typically much less of a barrier than in civil law. This is especially the case because corporate criminal liability cases are often closed through a so-called penalty order issued by prosecu - tion authorities, rather than a court judgment. Accordingly, parent companies may generally be held liable for criminal acts conducted in the course of their subsidiaries’ activities. 4. Enforcement and Litigation 4.1 Enforcement Activities Swiss authorities have engaged in various enforcement activities that, while not normal - ly labelled as “BHR enforcement” , relate to business-related human rights issues. We can observe enforcement in criminal prosecution of companies and individuals, regulatory enforce - ment, and quasi-judicial actions. Some significant state-based enforcement activities include: • Prosecution of Corporate Criminal Liability: As mentioned (see 3.1 Criminal and Civil Corporate Liability ), corporate criminal liabil - ity serves as a basis to combat BHR-related abuses (see 4.2 Case law ). • Human Trafficking and Labour Exploitation: Switzerland regularly investigates networks and individuals involved in human trafficking, forced prostitution, and labour exploitation.
Examples include restaurant owners fined and convicted for abusing undocumented staff, or a logistics company manager con - victed for employing and housing workers in slavery-like conditions. In recent years, an uptick in labour exploitation cases (eg, in agriculture or construction involving undocu - mented migrants) has been observed. The Federal Police (Fedpol) and cantonal police run joint task forces to combat human traf - ficking. Convictions for human trafficking (Article 182 SCC) occur on a regular basis, though the numbers are relatively modest. • Labour Inspections and Sanctions: Enforce - ment of labour standards (wages, hours, safety) is an important piece of state enforce - ment protecting workers. Labour inspectors examine workplaces and can sanction com - panies for violating health and safety regula - tions, which protect the rights to safe working conditions, etc. Severe breaches can lead to criminal charges. • Environmental Enforcement with Human Rights Implications: Environmental agencies and the police enforce laws on pollution and toxic substances. For instance, if a chemical company improperly disposes of waste and endangers communities, authorities can order remediation and prosecute responsible man - agers. An example is the long-running reme - diation of chemical waste dumps. Although framed as environmental enforcement, these actions align with the state’s duty to protect the human rights to health and a safe environ - ment. • Export Controls and Sanctions Enforcement: Switzerland enforces export control laws that intersect with human rights. The State Secretariat for Economic Affairs (SECO) can deny or condition export licences for mili - tary or dual-use goods if there is a risk they would be used to commit serious human
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