Staff Leasing (Personalverleih) and the AVG

Staff leasing (Personalverleih) means hiring employees through a licensed staffing agency rather than directly. In Switzerland, this is regulated under the Employment Act (ArG) and requires the agency to hold a valid Personalverleih license. You remain responsible for workplace conditions, safety, and wage compliance even though the worker is employed by the agency.

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Staff leasing is the practice of hiring workers through an external staffing agency (Personalverleihfirma) that formally employs them. The worker performs duties at your company under your direction, but the employment contract runs between the worker and the agency, not you.

This arrangement is common for temporary cover, project work, or seasonal demand. However, Swiss labour law treats it strictly: you cannot simply use it to avoid direct hiring obligations.

When Staff Leasing Comes Up

You may turn to staff leasing when permanent headcount is not justified—illness cover, holiday relief, production peaks, or a three-month project. It offers flexibility without onboarding permanent staff.

Staff leasing also suits situations where you need a specific skill for a short window or want to trial someone before permanent hire. Many Swiss SMEs use it for administrative, technical, or warehouse roles.

  • Temporary absence cover (sickness, holiday)
  • Project-based or seasonal work
  • Filling urgent gaps while recruiting permanently
  • Testing a candidate before permanent contract
  • Roles requiring specialized skills short-term
  • Administrative or manual labour peaks

Your Legal Obligations

Under the Employment Act (ArG), you must ensure the leased worker receives the same working conditions, safety standards, and wages as your own employees doing equivalent work. You remain responsible for compliance even though you do not hold the employment contract.

The staffing agency must hold a valid federal Personalverleih license and maintain proper insurance. Verify this before engaging—unlicensed agencies expose you to liability. Check the State Secretariat for Economic Affairs (SECO) register if in doubt.

  • Verify the agency holds a current federal Personalverleih license (SECO register)
  • Ensure the leased worker receives wages, benefits, and conditions equal to your own staff
  • Provide the same workplace safety and health protections
  • Do not treat leased workers as a way to undercut wage or safety standards
  • Document the assignment duration and role clearly with the agency
  • Comply with canton-level minimum wage standards (if applicable)

The Single Most Common Mistake

Employers often assume that using a staffing agency transfers all responsibility to the agency. It does not. You remain jointly liable for wage compliance, working hours, and safety conditions. If the leased worker is underpaid or overworked, the canton labour inspectorate will look at both you and the agency.

Do not hire repeatedly from the same agency for the same role with no break between contracts. This can be interpreted as an attempt to evade permanent employment obligations—Swiss courts have ruled against employers in such cases. If the need is recurring, hire directly.

Frequently asked questions

Does using staff leasing mean I avoid paying 13. Monatslohn or holiday allowance?
No. If your own staff receive 13. Monatslohn or holiday supplements, the leased worker must receive equivalent treatment. The Employment Act (ArG) requires equal conditions. The agency handles the payroll, but you must confirm this is honoured in the contract.
Can I use staff leasing to avoid hiring someone permanently?
No if the need is permanent or recurring. Swiss courts have ruled that repeated leasing of the same role is an abuse of the arrangement. If the work is ongoing, you should hire directly. Staff leasing is for temporary, genuinely short-term needs.
What happens if the agency is not licensed?
You face legal risk. An unlicensed agency violates the ArG. You may be held liable for wage and social insurance breaches. Always check the SECO register before engaging. Many cantons also maintain local records of approved providers.

General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.

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