Appeal against referendum Court overturns minimum wage for Zurich and Winterthur
But no minimum wage for the residents of Zurich and Winterthur: on Friday, the Administrative Court of the Canton of Zurich overturned the ordinances on the introduction of a minimum wage.
29.11.2024, 13:03
SDA
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- The Zurich Administrative Court has declared the introduction of municipal minimum wages in Zurich and Winterthur illegal.
- The ordinances were halted despite the approval of the voters, as according to the court, the municipalities have no authority to intervene in employment relationships under private law.
- The cities concerned can still appeal against the ruling to the Federal Supreme Court, which means that the decision is not yet legally binding.
According to a press release issued by the Zurich Administrative Court on Friday, the cantons are permitted to introduce a minimum wage as a social policy measure within certain limits under the case law of the Federal Supreme Court.
The minimum wages provided for in the cities of Zurich and Winterthur are within the permissible limits and are compatible with economic freedom and the principle of the primacy of federal law.
However, the court argued that neither the constitution of the canton of Zurich nor the cantonal social welfare law allowed the municipalities to intervene in private employment relationships to prevent poverty. The ordinances therefore violated cantonal law. The court therefore upheld the appeals lodged against them.
Clear yes at the ballot box
In June 2023, voters in the city of Zurich and Winterthur clearly approved the introduction of communal minimum wages. In Zurich, the minimum wage should have been CHF 23.90 per hour, in Winterthur CHF 23.
Opponents also expressed legal concerns in the run-up to the vote. There was no certainty before the vote as to whether a municipal minimum wage was legally permissible at all.
Associations appealed
After the yes vote on the municipal minimum wage, the Chamber of Commerce and Employers' Association of Winterthur (HAW), the SME Association of Winterthur and the surrounding area and the Trade Association of the City of Zurich took legal action.
They had pointed out from the outset that minimum wages are primarily the responsibility of the social partners and that municipal solutions are neither permissible nor sensible, the associations wrote in a press release on Friday regarding the administrative court ruling.
A municipal regulation would also lead to a patchwork, which would not only lead to complicated bureaucratic hurdles in terms of regulations, but also particularly in terms of implementation, they continued.
The ruling of the Zurich Administrative Court is not yet legally binding. It can be appealed to the Federal Supreme Court.