Switzerland is a prime market for STEM and specialist staffing. Many firms start with an Employer of Record (EOR)/payroll provider paying a margin for speed. Smart and widely accepted business practice. Once hiring becomes repeatable, that margin however compounds.

This article explains how EORs work under Swiss staff leasing law, what the CBA Staff Leasing requires, and when it pays to obtain your own SECO license. For agile staffing firms, establishing a local presence is key to placing talent quickly and building sustainable growth. HUCAI helps international firms navigate this complexity with confidence.

In Switzerland, what’s popularly referred to as an EOR legally functions as a staff leasing arrangement under the AVG (Private Employment Agencies and Staff Leasing Act). Licensing oversight is managed at the cantonal level, while SECO sets the overarching regulations.

In Switzerland, an EOR arrangement legally falls under staff leasing (AVG/AVV framework). This means:

• Providers need a cantonal permit (and federal license if cross-border)
• The business must comply with the CBA for Staff Leasing (2024–2027), which sets minimum wages, pensions, social contributions, and audit requirements

For clients, this is crucial: even if you “outsource” payroll via an EOR, the obligations remain part of your cost base.

Both options are viable. Both have costs, risks, and strategic implications. This updated 2025 guide explains when to use an EOR, when to switch to your own SECO license, and how HUCAI helps companies land, establish, and expand in Switzerland with confidence.

For early entry, an EOR is like a sprint lane: fast and simple up to 10 hires. But when growth picks up, building on your own local entity becomes the steadier, more scalable route.

(Thomas A. Sola | CEO HUCAI AG)

The regulatory environment in Switzerland leaves little room for ambiguity: any company wishing to operate in the staffing industry must first obtain official authorization from SECO. Within this system, two primary categories of licenses exist. The first covers permanent placement, allowing agencies to match candidates with permanent roles. The second, often referred to as staff leasing or bodyleasing, applies to the temporary deployment of personnel on assignment with client companies.

The following requirements must be met in order for a SECO permit to be issued:

• Staffing company must be entered in the Swiss commercial register
• Staffing company requires a physical registered office
• requires an authorized representative who is either a Swiss citizen or a foreigner resident in Switzerland with track record in staffing compliance

For companies entering Switzerland, working with an Employer of Record (EOR) or payroll provider often feels like the quickest shortcut. It’s a practical way to test the market, manage a handful of initial hires, or build a presence without setting up a Swiss legal entity. Providers like Helvetic or Numeriq effectively “host” your employees, taking care of payroll, contracts, and compliance under their own licenses.

Costs are typically calculated either as a flat monthly fee per worker or as a percentage of the employee’s gross pay. At first glance, these fees may seem worthwhile because they reduce the administrative burden and allow companies to hire in Switzerland almost immediately.

The advantages are clear: onboarding is fast, companies avoid the complexity of establishing a local office, and day-to-day HR administration is handled externally. For early-stage or pilot projects, this flexibility can be invaluable.

Yet, the EOR route has its trade-offs. Over time, the recurring fees erode margins, and firms lose a degree of control over their employment brand and client relationships. More importantly, under Swiss law an EOR arrangement is legally treated as staff leasing.

We have a dedicated team specializing in the Swiss HR industry, providing advisory services covering various aspects of the SECO licensing process, including regulatory administration, legal framework, and operational best practices.

Thanks to our many years of experience, our team has extensive knowledge of the market, which we use to validate your expansion strategy and, if necessary, adapt it to the Swiss staffing market. The experts at HUCAI will show you where the potential in your market segment is greatest and where you can best serve the market with your staffing expertise. With this insight, your staffing company is perfectly equipped for entering the Swiss market and for further growth.