Recruitment Agencies in Switzerland
Switzerland has a well-developed recruitment market, from global headhunters to local staffing agencies. One important rule: recruitment agencies cannot charge fees to job seekers. They are paid exclusively by the hiring company.
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Types of Agencies and the AVG Licence
Swiss law distinguishes two types of placement: job placement agencies (Stellenvermittler) that match candidates with permanent positions, and staffing agencies / temp firms (Personalverleiher) that place workers on temporary assignments. Both require a federal licence under the Employment Agency Act (AVG/LSE). The AVG strictly prohibits charging candidates for placement fees, violations can result in the agency losing its licence. Always ask to see an agency's AVG licence number if you are being asked to pay.
Temporary Staffing and Worker Rights
In a temporary staffing arrangement, the staffing agency is the legal employer; the client company is the user firm. The agency pays wages, handles social insurance and issues payslips. Workers must be treated at least as well as the user firm's comparable permanent employees for the same work (equal treatment principle, after 3 months under the GAV Personalverleih). Maximum assignment duration with the same user firm: 2 years (AVG Art. 35 GAV), after which the user firm must either hire the worker permanently or end the assignment.
Headhunters and Direct Search
Headhunters (executive search) work proactively for specific mandates, often for senior or specialist roles. They approach candidates directly (typically on LinkedIn or via networks) and work exclusively on the hiring company's mandate. They never charge candidates. Typical headhunter fee: 15–25% of the annual salary of the placed candidate, paid by the employer. From the candidate's perspective, working with a reputable headhunter costs nothing and can open roles that are never publicly advertised.
Frequently Asked Questions
Can a recruitment agency charge me a fee in Switzerland?
No. The AVG (Employment Agency Act) strictly prohibits charging placement fees to candidates. If an agency asks you to pay, report them to the cantonal AVG authority.
What are my rights as a temporary worker placed by a staffing agency?
You are employed by the staffing agency, not the user firm. After 3 months, the GAV Personalverleih ensures equal treatment with the user firm's permanent employees. Maximum assignment: 2 years with the same user firm.
Is a headhunter different from a recruitment agency?
Yes. A headhunter (executive/direct search) proactively identifies candidates for a specific mandate and never advertises publicly. A recruitment agency posts vacancies and receives applications. Both are paid by the employer, never the candidate.
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