Recruitment Agency (Personalvermittlung)
A Personalvermittlung is a licensed intermediary that sources, screens, and places job candidates into permanent roles. You pay a commission—typically 10–20% of the first annual salary—only when a hire is made. Swiss law (ArG Article 14) requires agencies to hold a permit and register with cantonal authorities. The most common mistake is failing to verify the agency's current permit status before signing a contract.
A recruitment agency (Personalvermittlung) is an intermediary licensed by your canton that finds and places candidates into permanent employment on your behalf. You pay a fee—usually a percentage of the first-year salary—only after a successful placement.
Unlike temporary-staffing agencies (Personalleihfirmen), which place workers into short-term roles, a Personalvermittlung focuses on permanent positions. The candidate becomes your direct employee once placed.
When Personalvermittlung Comes Up
You contact an agency when you need to fill a permanent role but lack in-house recruiting capacity or don't want to run a public job posting. Common scenarios: filling a specialist role quickly, reaching passive candidates, or scaling hiring in a tight labour market.
Most useful for mid-level positions, niche technical roles, and situations where you need pre-screened candidates. Less common for entry-level or very senior C-suite placements, though agencies do cover both.
- You define the role, salary range, and Pensum percentage; the agency sources candidates.
- The agency handles initial screening, reference checks, and candidate management.
- You conduct interviews and make the final hire decision.
- Payment is triggered only after the candidate starts work (not after signature).
- Reputable agencies often guarantee a replacement if the hire leaves within 30–90 days.
- Fees range from 10–20% of annual gross salary, depending on role complexity and market demand.
Your Legal Obligations
Swiss employment law (ArG Article 14) requires all Personalvermittlung to hold a cantonal permit and register with the relevant authority—usually your canton's labour office (RAV/ORP/URC). Before signing, verify the agency's permit is current and valid in your canton.
You must treat the placed candidate as your direct employee from day one. Pay wages, deduct source tax (Quellensteuer), contribute to social insurance, and issue an Arbeitszeugnis on departure. The agency has no ongoing employment relationship with the candidate.
- Check the agency's cantonal permit before engagement; ask for proof of current registration.
- Confirm the fee structure in writing—whether it covers one placement or multiple candidates.
- Ensure the contract specifies a guarantee period (typically 30–90 days) if the hire fails.
- The agency must respect data protection rules (revDSG) when handling candidate information.
- You remain responsible for all employment laws, GAV obligations, and workplace rules.
- Some cantons cap agency fees by law; confirm the rate complies with your canton's rules.
Most Common Mistake
The single most common error is failing to verify the agency's permit status. Some agencies operate without current cantonal registration, exposing you to liability if disputes arise. Always request proof of registration before committing.
A secondary mistake is unclear fee terms: confirm upfront whether you pay only on hire, whether the fee applies to one candidate or multiple attempts, and what the replacement guarantee covers. Vague agreements lead to billing surprises.
- Do not assume a well-known agency name means current valid permit; registration varies by canton.
- Do not sign a contract without a written fee schedule and guarantee period.
- Do not delay verifying the candidate's work authorization and tax status—it remains your responsibility.
- Do not treat the placed candidate as a contractor; from day one, they are your employee.
- Do not rely on the agency to manage payroll or social insurance compliance.
- Do not skip reference checks yourself, even if the agency provides them.
Frequently asked questions
- Is using a Personalvermittlung cheaper than hiring directly?
- Not always. A 10–20% fee on first-year salary adds up fast. For a CHF 80,000 role, that is CHF 8,000–16,000. Direct hiring (job boards, own network, in-house) may be cheaper if you have time. Agencies pay off when speed matters, the talent pool is tight, or you lack recruiting expertise.
- What if the candidate leaves after two months—do I get a refund?
- Most agencies offer a replacement guarantee (30–90 days), not a refund. If the hire fails within the guarantee period, the agency finds you a replacement at no extra charge. Terms vary; confirm in writing before signing.
- Can an agency place temporary or part-time staff?
- A Personalvermittlung places permanent hires. For temporary or part-time workers, you need a Personalleihfirma (temporary-staffing agency), which is a different regulated model. Do not confuse the two.
General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.