Legislator Case Law & Legislation
11 02 141 • KG LU 11 02 141 AI generated

Wage Disposal Restriction Invalidates Compensation Agreement for Senior Staff

Case Number 11 02 141
Court / Authority
Jurisdiction Switzerland · Canton of Lucerne (CH-LU)
Decision Date
Outcome Allowed / Granted

Legislator summary

AI generated

The court affirmed that an agreement contravening the prohibition on payment in kind or restriction of wage disposal (Art. 323b Abs. 3 OR) renders the contract void, applying without restriction to all employees, including senior staff. Specifically, compensation partly in options, where the employee could not immediately dispose of the cash value, was deemed an impermissible restriction on wage disposal because the options were non-transferable and subject to a three-year exercise lock-up without a right of return. This invalidity required the employer to reimburse the difference between the original credited option value deducted from the cash salary and the amount later paid upon repurchase, amounting to the specified sum.

Legislator headnote

AI generated

Art. 323b Abs. 3 OR, Art. 323b OR; Wage Disposal Restriction Invalidates Compensation Agreement for Senior Staff: 323b Abs. 3 OR) renders the contract void, applying without restriction to all employees, including senior staff. Specifically, compensation partly in options, where the employee could not immediately dispose of the cash value, was deemed an impermissible restriction on wage disposal because the options were non-transferable and subject to a three-year exercise lock-up without a right of return. This invalidity required the employer to reimburse the difference between the original credited option value deducted from the cash salary and the amount later paid upon repurchase, amounting to the specified sum.

Keywords

AI generated
difference compensation wages in kind cash payment contract staff prohibition of payment repurchase agreement

Cited Legislation

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AI generated

Key legal questions extracted by Legislator

AI generated
Art. 323b Abs. 3 OR

This article forms the primary legal basis for concluding that the option plan was a void agreement and justified the resulting restitution claim.

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Full text

Rechtsprechung Luzern

Instanz: · Obergericht Abteilung: · I. Kammer Rechtsgebiet: · OR (Obligationenrecht) Entscheiddatum: · 03.03.2004 Fallnummer: · 11 02 141 LGVE: · 2004 I Nr. 20 Leitsatz: · Art. 323b Abs. 3 OR. Das Truckverbot gilt ohne Einschränkungen für sämtliche Arbeitnehmer. Rechtskraft: · Diese Entscheidung ist rechtskräftig.