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..