Cross-Border Recruitment for CH (SECO)
What does the state secretariat for economic affairs (seco) regulation state?
Provisions concerning Private Placement Services under the Federal Act on Employment Services and the Hiring of Services (AVG)
This means that foreign agencies without registered offices in Switzerland are prohibited from directly arranging commercial placements in Switzerland. Not complying with these regulations can mean that both the client and the agency can be liable for penalties enforced by the state secretariat.
- There are two kinds of licenses – regional (cantonal) and national (for all of Switzerland),
- The invoicing procedure has to go through the partner with the license,
- The same rules apply to Executive Searches with Retainer.
- To only have a letterbox company in Switzerland,
- Direct placements of candidates through foreign agencies without a valid SECO license and an official registered presence in Switzerland or a partner who fulfils the requirements,
- For foreign agencies to place temporary candidates in Switzerland.
The foreign agency and the Swiss employer in question, both need to register on the Talentory platform. This establishes the contractual basis between all 3 parties. The employer provides Talentory with the particulars of the open position and the conditions that have been agreed (job description, salary range, success fee and payment terms). The Talentory Success Team representative creates the position on the platform and links it to the agency and the employer. The relevant conditions are captured on the position. From this point on, the candidate profiles are captured on the platform for review and can be submitted via the platform to the employer for consideration. The entire recruitment process is tracked and transparent. In the event of a placement, Talentory will invoice the employer for the agreed success fee amount. The agency then invoices Talentory for the fee, minus a service fee of 5%.
Talentory charges a service fee of 5% of the full placement fee amount. This service fee is charged to the agency and applies to both contingent and retained searches. In the case of a retained search, invoicing occurs according to an agreed payment schedule. There is a minimum service fee, per placement, of CHF 500.
In exceptional cases only, where the placement has already taken place and Talentory is engaged only for billing purposes, the service fee charged is 10% of the full placement fee amount. Cases such as these also require the employer to be registered on the platform (to avoid such events in the future).
In the event that a published „cross-border“ position is cancelled without a successful placement for any reason, an administration fee of CHF 340, – will be charged to the search consultant.