SECO Work Permits for Switzerland
Businesses that supply temporary staff, operate as employers of record (EOR), or provide headhunting services in Switzerland must hold a permit issued under the Federal Employment Services Act (Arbeitsvermittlungsgesetz, AVG). SECO (State Secretariat for Economic Affairs) oversees the federal permit regime, while cantonal labour offices handle local authorisations. We manage the entire application process — from preparing the required documentation to liaising with the relevant authorities.
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Personnel Leasing Permits
Personnel leasing (Personalverleih) is regulated under Articles 12-20 of the AVG and the corresponding ordinance (AVV). Any company that employs workers and assigns them to perform work under the direction of a third-party client must obtain a personnel leasing permit before commencing operations.
There are two permit levels. A cantonal permit authorises leasing within a single canton. A federal permit, issued by SECO, covers cross-cantonal and international personnel leasing. Most staffing agencies operating across Switzerland require the federal variant.
Applicants must demonstrate financial stability (typically through a bank guarantee of CHF 50,000 for a cantonal permit or CHF 100,000 for a federal permit), compliance with Swiss labour law, and adequate professional qualifications of the management team. We prepare the application, draft the required guarantee documentation, and ensure your employment contracts meet AVG standards.
Private Employment Placement
Headhunting, executive search, and recruitment agencies that place candidates for a fee are classified as private employment agencies under Articles 2-8 of the AVG. These businesses need a placement permit (Vermittlungsbewilligung) — cantonal for single-canton operations, federal for cross-cantonal or international recruitment.
The distinction from personnel leasing is important: in placement, the employment relationship forms directly between the candidate and the client company. The recruiter acts as an intermediary, not as an employer. However, the permit requirements are equally strict, covering financial guarantees, professional qualifications, and compliance with data protection rules when handling candidate information.
We advise on which permit type matches your business model and prepare the complete application package for submission to SECO or the cantonal authority.
Outstaffing and Employer of Record
Outstaffing and EOR arrangements, where a Swiss entity formally employs staff on behalf of a foreign client, fall under the personnel leasing regime. The Swiss EOR company acts as the legal employer, handles payroll, social insurance contributions (AHV/IV/EO), pension fund enrolment (BVG), and accident insurance (UVG), while the worker performs duties directed by the foreign client.
This model is increasingly used by international companies that want to hire talent in Switzerland without establishing their own subsidiary. However, the EOR provider must hold a valid personnel leasing permit under the AVG. Without it, both the EOR company and the client face administrative sanctions and potential fines.
We assist EOR operators with permit applications and ongoing compliance, and advise foreign companies on selecting a compliant EOR provider. If you need to form a Swiss company to serve as your EOR vehicle, we handle that as well.
Ongoing Compliance Obligations
Holding a SECO permit is not a one-time event. Permit holders must comply with ongoing obligations: maintaining the bank guarantee, adhering to equal pay requirements (Gleichstellungsgesetz), respecting minimum wage provisions in cantons that impose them, and ensuring proper social insurance coverage for all leased workers.
SECO and cantonal authorities conduct periodic audits. Non-compliance can result in permit revocation, fines, or criminal proceedings under Article 39 of the AVG. We provide ongoing compliance support, including contract reviews, audit preparation, and regulatory updates.
For businesses also requiring financial services licensing — for example, fintech staffing agencies — we coordinate both regulatory processes to avoid duplication and delays.
Frequently Asked Questions
Apply for Your Permit
Whether you are launching a staffing agency, expanding EOR services into Switzerland, or starting a recruitment firm, we will identify the right permit type and manage the application from start to finish.
Morgan Hartley
Senior Corporate Lawyer & Partner