Jurilo by Lawise.ai:
In everyday Swiss working life, terms like bonus, commission and gratification frequently appear – often even synonymously. However, legally these are different forms of remuneration, each with their own requirements and legal consequences. In this article, you will learn how bonus, commission and gratification differ, what entitlements exist and what employers and employees should pay attention to.
OVERVIEW: THREE DIFFERENT TYPES OF REMUNERATION
Various types of salary components are regulated in the Code of Obligations (CO). The most important special remunerations in addition to the basic salary are:
Commission (Art. 322 CO)
Gratification (Art. 322d CO)
Bonus (not legally defined, but legally classifiable)
These terms are often mixed up in practice, although they have different legal effects.
WHAT IS A COMMISSION IN SWISS EMPLOYMENT LAW?
Definition and Legal Basis
Commission is a performance-based remuneration to which the employee is entitled for concluding or brokering business transactions. It is legally regulated in:
The prerequisite is that the commission was contractually agreed. It arises as soon as the transaction with the third party is legally concluded.
Typical Characteristics
Entitlement arises automatically upon business success
Amount usually a percentage of turnover or profit
Entitlement also proportionate upon termination
WHAT IS A GRATIFICATION ACCORDING TO ART. 322D CO?
Definition and Legal Basis
Gratification is a voluntary special remuneration that the employer pays in addition to salary on certain occasions (e.g. Christmas, end of financial year). It is regulated in:
Whether an entitlement exists depends on the agreement and previous practice.
Typical Characteristics
Voluntary (unless it has become obligatory through custom)
No fixed entitlement, except with contractual assurance
May be owed proportionately upon termination of employment
WHAT IS A BONUS IN SWISS EMPLOYMENT LAW?
Legal Classification
The term "bonus" is not legally defined. Depending on its design, a bonus can legally represent either a gratification or a salary component (e.g. variable salary component).
The distinction depends on:
Binding nature (voluntary or contractually assured)
Calculation basis (transparent or discretionary)
Regularity of payment
Bonus as Gratification or Salary?
If the bonus is tied to clear targets and paid regularly → salary component
If the bonus is voluntary, irregular and without entitlement → gratification
In practice, a bonus can also be designed as mixed: part salary, part gratification.
BONUS, COMMISSION & GRATIFICATION UPON TERMINATION
Commissions are owed proportionately, even upon termination
Gratifications only if contractually agreed or through established company practice
Bonuses with salary character are owed proportionately; voluntary bonuses not necessarily
BONUS, COMMISSION & GRATIFICATION IN THE EMPLOYMENT CONTRACT
What matters is not the designation, but the contractual design. Unclear clauses are interpreted to the detriment of the employer.
CONCLUSION
Bonus, commission and gratification differ in their legal nature and requirements. What matters is not the designation, but the specific design. Employers should clearly regulate remuneration models, employees should examine their entitlements on a case-by-case basis – particularly upon termination of employment.
👉 Unsure whether your bonus is owed?
Jurilo examines bonus, commission and gratification entitlements under Swiss law.
👉 See also: Termination in Switzerland – Bonus & Financial Consequences
👉 Related: Contract Amendment in Switzerland – Salary, Workload, Function
👉 Basics: Employment Contract Switzerland – Content & Obligations
FAQ ON BONUS, COMMISSION AND GRATIFICATION
What is the difference between bonus and gratification?
A bonus can be either a gratification or a salary component – depending on its design. A gratification is fundamentally voluntary, a bonus with target binding can be binding.
Do I have an entitlement to a gratification?
Only if it was contractually agreed or has become an obligation through established company practice. Otherwise it is voluntary.
Is commission legally regulated?
Yes. Commission is regulated in Art. 322 CO. It arises automatically when a contractually agreed transaction has been successfully concluded.
Must a bonus always be paid?
No. Only if the bonus was contractually assured or has been paid regularly and bindingly does an entitlement exist. Otherwise it is voluntary.
What happens to bonus or commission upon termination?
Commission entitlements continue proportionately. A bonus with salary character is also owed proportionately. A voluntary gratification may lapse if the occasion has not yet occurred.
How do I recognise whether a bonus is salary or gratification?
Decisive criteria are: regularity, target binding, transparency of calculation and contractual assurance. The more binding, the more likely it is a salary component.
Can a bonus be partly salary, partly gratification?
Yes. In practice, a mixed design is possible. One part can be binding (salary), another voluntary (gratification).
What is established company practice for gratifications?
If a gratification has been paid regularly and without reservation over several years, an entitlement can arise from this – even without a written agreement.
Do I have to repay a commission if a transaction fails?
Only if this was contractually agreed or the third party does not pay. Art. 322 CO regulates when a commission entitlement lapses or is proportionately reduced.
Can I sue for a bonus?
Yes, if the bonus was contractually assured or has effectively become a salary component. For purely voluntary bonuses without entitlement, a lawsuit is usually futile.
