The spouse as free labor?
Spouses who work in their spouse’s business may be entitled to compensation under certain circumstances. Depending on the extent of their work and the business’s financial performance, it is advisable to enter into an employment contract. By Cornelia Döbeli, attorney, consultant, and editor at *Der Beobachter*, specializing in inheritance law, family law, and guardianship law.
Rita Meier (name changed) does her husband's bookkeeping and a large part of the office work for him since he set up his own business as an advertising consultant seven years ago. She does this free of charge, in addition to running the household and looking after the children. There are around 300,000 SMEs in Switzerland and most of them could not survive without the help of a family member - usually the wife. A friend recently advised Rita Meier to ask her husband for an employment contract - "then at least she'll have something in her hands if things don't go well in the business or even in the marriage". Is that true?
Spouses are legally obliged to safeguard the welfare of the community and to provide jointly for the proper maintenance of the family. They are also obliged to support each other in word and deed, as well as financially. If one spouse works in the other's business, this can be done as part of this marital duty of support. No remuneration is then owed.
However, if a spouse works considerably more than their contribution to family maintenance would require, they are entitled by law to special compensation. This is the case, for example, if the spouse would otherwise have to be replaced by another worker. Rita Meier, for example, who does secretarial work and bookkeeping for her husband in addition to housework and childcare, would clearly be entitled to such special compensation.
How much she could charge depends not only on the type and scope of the work performed, but also on the profitability of the business and the couple's standard of living. If a couple cannot agree on the amount, a budget advice center can help. Compensation can also be claimed in court. It does not expire during the marriage and can be claimed at any time, but at the latest when the marriage ends, for example through divorce.
If one spouse makes a substantial contribution to the spouse's company and there is economic scope for a (partial) second income, it is even advisable to draw up a written employment contract with a salary agreement and all the rights and obligations of an employee. The salary is then subject to tax. But apart from that, the employment contract offers significant advantages, in particular the improved position of the spouse in old age, as well as in the event of illness, accident and unemployment. Rita Meier would therefore do well to follow her friend's advice, even if her husband may find this "bureaucratic effort" completely unnecessary at the moment.
As a minimum, this should be included in the employment contract:
- Date of commencement of employment
- Wage (monthly or hourly wage, 13th monthly wage)
- Workload with working hours
- Area of responsibility and position in the company
Spouses are legally obliged to safeguard the welfare of the community and to provide jointly for the proper maintenance of the family. They are also obliged to support each other in word and deed, as well as financially. If one spouse works in the other's business, this can be done as part of this marital duty of support. No remuneration is then owed.
However, if a spouse works considerably more than their contribution to family maintenance would require, they are entitled by law to special compensation. This is the case, for example, if the spouse would otherwise have to be replaced by another worker. Rita Meier, for example, who does secretarial work and bookkeeping for her husband in addition to housework and childcare, would clearly be entitled to such special compensation.
How much she could charge depends not only on the type and scope of the work performed, but also on the profitability of the business and the couple's standard of living. If a couple cannot agree on the amount, a budget advice center can help. Compensation can also be claimed in court. It does not expire during the marriage and can be claimed at any time, but at the latest when the marriage ends, for example through divorce.
If one spouse makes a substantial contribution to the spouse's company and there is economic scope for a (partial) second income, it is even advisable to draw up a written employment contract with a salary agreement and all the rights and obligations of an employee. The salary is then subject to tax. But apart from that, the employment contract offers significant advantages, in particular the improved position of the spouse in old age, as well as in the event of illness, accident and unemployment. Rita Meier would therefore do well to follow her friend's advice, even if her husband may find this "bureaucratic effort" completely unnecessary at the moment.
As a minimum, this should be included in the employment contract:
- Date of commencement of employment
- Wage (monthly or hourly wage, 13th monthly wage)
- Workload with working hours
- Area of responsibility and position in the company
Do you need legal advice?
The Beobachter Consulting Center offers you and your employees expert advice by telephone on legal issues concerning your company - 6 months for only Fr. 99.-. Order the consulting package for SMEs at
www.beobachter.ch/kmu or 0800 83 0800.
Book tip
Irmtraud Bräunlich Cellar
"Labor law. From contract to termination"
272 pages, Fr. 36.-.
10th, expanded and updated edition, 2009
Beobachter-Buchverlag.
ISBN 978 3 85569 412 9
