Can you have your employees work for another company?
The idea is simple: A company with surplus human resources lends its staff to a company with a shortage in return for payment. An employee with specialised expertise is temporarily deployed in another company, and a fee is charged for the arrangement.
A distinction is made between temporary work, agency work and occasional leasing. Depending on the circumstances, the leasing of staff may require a permit – issued by the cantonal labour office (in Switzerland) or the State Secretariat for Economic Affairs (abroad). Obtaining a licence is subject to operational and personal requirements as well as the payment of a deposit. It is not permissible to lease staff from abroad to work in Switzerland. A written staff leasing contract in accordance with Art. 22 of the Federal Law on Employment and Labor Leasing (AVG/LSE) and the consent of the employee are required. If the company leasing the employee from another company is subject to a generally binding collective employment agreement, its provisions must also be observed by the company placing the employee.
In addition to the legal requirements, it must be ensured that the leased employee is adequately insured under social security law. As a rule, it is the company placing the employee with another that pays the salary and therefore also provides social insurances. Leasing activities are subject to compulsory accident insurance with Suva. Both the leasing company and the hiring company must comply with the provisions on occupational health and safety. It is advisable to take out special liability insurance, particularly in the event of recourse by the accident insurance company.
In principle, intra-group staff leasing is also subject to authorisation. However, exceptions apply under certain conditions.
We highlight the cases in which staff leasing is permitted, what permits are required and what other risks might be lurking.