Whistleblowing

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Most compliance cases begin with information from inside the company. Employees who observe misconduct are often the only source that can reveal it, which is why enforcement authorities in the United States reward them generously. The SEC's whistleblower programme pays a percentage of the sanctions recovered, and the False Claims Act gives private plaintiffs a share of the amounts recovered for the government. Several large settlements involving pharmaceutical companies began with such actions. The European Union adopted a Whistleblower Directive in 2019, which required member states to protect persons who report breaches of Union law and to ensure internal and external reporting channels.¹

Switzerland has no comprehensive statutory protection for whistleblowers in the private sector. A bill that would have regulated the conditions under which employees may report irregularities to authorities or the public failed in Parliament in March 2020, after years of discussion. Employees who report to the authorities thus rely on the general rules of labour law, according to which an abusive dismissal may lead to compensation, and on the case law of the Federal Supreme Court on the duty of loyalty. The OECD Working Group has repeatedly criticised this situation. In practice, the large Basel groups operate internal reporting systems that allow anonymous reports and that prohibit retaliation, because foreign law requires it and because these systems are an indispensable source of information.²

Notes

Section 21F of the Securities Exchange Act of 1934 (SEC whistleblower programme, introduced by the Dodd-Frank Act of 2010); Directive (EU) 2019/1937 on the protection of persons who report breaches of Union law. To be verified. ↩
On the failed revision of the Code of Obligations concerning the protection of whistleblowers (Business 13.094), rejected by the National Council in March 2020, see the records of the Federal Assembly; on the criticism of the OECD Working Group, see the Phase 4 Report on Switzerland of 2018. To be verified. ↩

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of August 2025.

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Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

My approach is to act as a trusted advisor who works directly with decision-makers, on an equal footing: I start from what you want to achieve and shape every structure, contract and tax decision around your commercial goals and how it improves your after-tax return. As “lawyers who make it happen”, my team and I stay involved until your company is set up, your structure is in place and your transaction has closed, and we remain available for any follow-on work that may be required. You benefit from bespoke solutions and personal attention, and sound, friendly and practical advice. We are not the lowest-cost provider in the market, nor do we intend to be; our aim is to deliver well-founded, proper solutions and excellent value for money.

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Whistleblowing

Notes

Setting up or expanding in Switzerland?