X-boarder staffing is prohibited in Switzerland

How quickly do you order something abroad and have it brought to Switzerland and installed in the private or business sector. Companies, on a large scale, order services abroad. The delivery of these services often need a presence of the employees from the service provider abroad. If the use of non-independent foreign employees in Switzerland has personnel rental characteristics, even if it is not called staff leasing, this is prohibited in Switzerland.

Cross-border staffing: Personnel leasing from abroad to Switzerland is not allowed, it violates Art. 12 para. 2 AVG (Employment Services Act). A company in Switzerland may be assessed with a fine up to 40’000 Swiss francs, when caught doing so. Also the intra-group rental of employees has not been allowed since summer 2017. Even if a well-known foreign hiring staff company would like to lend you qualified workers from abroad, do not touch it, because as a company based in Switzerland you are jointly responsible for knowing the legal situation. In some EU countries, cross-border staffing is allowed. Many people think that this is also true for Switzerland because of the Free Movement Agreement it has with the EU, but this is false because x-boarder staffing is under the control of SECO (State Secretariat for Economic Affairs) and not a part of the agreement with the EU.

If you have any uncertainty whether services ordered abroad are x-border staff leasing, we would be happy to assist you with any examination or clarification. For further questions on this topic please contact International HR Services Ltd..

Von Dagmar Richardson
17. Dezember 2017

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