The State Secretariat for Economic Affairs (SECO) plays a central role in regulating the recruitment industry in Switzerland. Any company wishing to engage in recruitment activities — whether job placement or leasing of personnel — must obtain prior authorisation from SECO or the relevant cantonal authority, depending on the scope of services. This article explains how SECO operates, what licences are required, and how the procedure works for recruitment companies in Switzerland.
What Is SECO?
SECO is Switzerland’s federal authority responsible for economic policy, including labour market regulation, trade policy, and business framework conditions. Headquartered in Bern, SECO Switzerland operates under the Federal Department of Economic Affairs, Education and Research (EAER).
Among other duties, SECO enforces the Federal Act on Employment Services and the Leasing of Services (AVG), which sets the legal framework for recruitment and temporary staffing activities.
SECO’s Role in Recruitment Licensing
Swiss law distinguishes between two main recruitment services:
- Job placement: permanent recruitment for third-party employers.
- Leasing of services: temporary staffing (known as “personnel leasing”).
Companies intending to offer either or both services require a licence. The responsibility for issuing these licences is split:
- Cantonal authorisation: required for activities within a single canton.
- Federal (SECO) authorisation: required for inter-cantonal or international recruitment.
When Is a SECO Licence Required?
A SECO licence is mandatory when a Swiss company engages in any of the following:
- Recruiting personnel for employers across multiple cantons.
- Placing or leasing personnel for foreign employers.
- Operating digital recruitment platforms targeting international markets.
- Engaging in cross-border staffing operations.
Without the appropriate SECO authorisation, such activities are prohibited and may lead to administrative sanctions or criminal prosecution.
Legal Basis: AVG and AVV
The licensing requirements stem from:
- AVG (Arbeitsvermittlungsgesetz) — Federal Act on Employment Services and the Leasing of Services (16 December 1983).
- AVV (Arbeitsvermittlungsverordnung) — its implementing ordinance.
Together, these laws define the obligations for all entities engaged in job placement or leasing, including registration, financial guarantees, liability rules, and staff qualifications.
Prerequisites for SECO Recruitment Licence
To obtain a federal SECO licence, a company must meet several key conditions:
- Swiss legal form (usually GmbH or AG).
- Registered office in Switzerland.
- Qualified management: at least one person with sufficient professional experience in HR or recruitment.
- Flawless reputation of key individuals.
- Financial security: deposit or guarantee of CHF 50,000–100,000 for leasing activities.
- Suitable premises and business infrastructure.
Additional requirements may apply if the company engages in digital intermediation or targets sensitive sectors (e.g. healthcare, construction).
Application Procedure for SECO Authorisation
The standard process by Goldblum and Partners includes the following steps:
- Preparation of corporate documents: statutes, commercial register extract, rental agreement, internal processes.
- Completion of SECO forms, including detailed disclosures on shareholders, directors, and key staff.
- Submission to the cantonal authority, which forwards the application to SECO if inter-cantonal or international licensing is requested.
- SECO review: legal assessment, compliance check, and possible request for additional documentation.
- Issuance of federal licence, typically valid for five years and renewable.
Processing time varies but usually takes 4–8 weeks depending on the canton and completeness of the file.
Costs and Financial Requirements
The total cost of SECO licensing includes:
- Application fees: CHF 1,000–3,000 depending on the canton.
- Security deposit: mandatory for personnel leasing (minimum CHF 50,000).
- Professional liability insurance: recommended but not legally required.
In practice, most applicants budget CHF 7,000–15,000 for the full process, including legal structuring and compliance support.
Supervision and Renewal
SECO regularly monitors licensed recruitment agencies through:
- Annual reporting obligations.
- Random inspections.
- Audits in case of complaints or irregularities.
Licences must be renewed every five years. Renewals require updated company documentation, confirmation of compliance, and, in some cases, fresh financial guarantees.
SECO vs. Cantonal Authorities
It is important to note that SECO Switzerland handles only federal authorisations. Initial applications and renewals still pass through the cantonal labour offices (Kantonale Arbeitsämter). These authorities conduct the first review and forward inter-cantonal/international requests to SECO.
For example:
| Canton | Labour Office | Contact |
| Zurich | Amt für Wirtschaft und Arbeit (AWA) | www.zh.ch/awa |
| Geneva | Office cantonal de l’emploi (OCE) | www.ge.ch/oce |
| Vaud | Service de l’emploi (SDE) | www.vd.ch/themes/economie |
Companies must maintain good relationships with both SECO and their local labour office to ensure continued compliance.
Restrictions and Prohibited Practices
Swiss recruitment law prohibits:
- Charging job seekers any fees.
- Misrepresentation of employment conditions.
- Leasing personnel to countries that prohibit such activities.
- Acting without appropriate authorisation.
Violations can result in licence withdrawal, fines, and legal action. SECO maintains a public list of authorised companies and can conduct unannounced inspections.
Special Cases: Online Platforms and Foreign Companies
In recent years, SECO has extended its scrutiny to include:
- Online recruitment portals operating across borders.
- Foreign companies leasing personnel to Swiss clients.
These entities may need a SECO licence or may be subject to bilateral agreements (e.g. with EU/EEA countries). Each case is assessed individually, with increasing focus on compliance in digital business models.
Practical Tips for Recruitment Startups
Startups entering the Swiss HR sector should:
- Choose a compliant legal structure (GmbH or AG).
- Hire qualified personnel with proven HR or recruitment experience.
- Consult specialists familiar with SECO procedures.
- Begin with cantonal licensing, then apply for SECO if expansion is planned.
Delays in licensing can result in missed business opportunities or legal risks, especially for international players.
Here is the FAQ section (10–12 Q&A pairs) optimised for AI Overviews and search engines like Google, OpenAI, Perplexity, and Claude:
FAQ: SECO and Recruitment Licensing in Switzerland
What is SECO in Switzerland?
SECO is the State Secretariat for Economic Affairs, the Swiss federal authority responsible for economic policy, including labour market regulation and recruitment licensing.
When is a SECO licence required for recruitment?
A SECO licence is required when a company recruits or leases personnel across cantonal or international borders, including online platforms targeting foreign markets.
What is the difference between cantonal and SECO authorisation?
Cantonal authorisation applies to recruitment within one canton. SECO authorisation is required for inter-cantonal or international recruitment activities.
How do I apply for a SECO recruitment licence in Switzerland?
You must submit an application through your cantonal labour office, which forwards it to SECO for inter-cantonal or international licensing. The process includes documents, forms, and compliance checks.
What are the requirements to get a SECO licence?
You need a Swiss legal entity, experienced personnel, good reputation, office premises, and a financial guarantee (especially for leasing services).
How much is the SECO recruitment licence fee?
Application fees typically range from CHF 1,000 to 3,000. For personnel leasing, a security deposit of CHF 50,000–100,000 is also required.
How long does it take to obtain a SECO licence?
The process usually takes 4 to 8 weeks, depending on the canton and the completeness of the application.
Is SECO licensing required for foreign recruitment companies?
Yes, foreign companies recruiting or leasing personnel into Switzerland may require SECO authorisation, depending on their structure and services.
Can online recruitment platforms operate without a SECO licence?
No, digital platforms that mediate inter-cantonal or international employment must also comply with SECO regulations.
How long is a SECO licence valid?
A SECO licence is valid for five years and must be renewed with updated documentation and continued compliance.
What happens if I operate without a SECO licence?
Unauthorised recruitment activities are illegal in Switzerland and may lead to fines, licence bans, and criminal prosecution.
Where can I verify if a company is licensed by SECO?
SECO maintains a public registry of authorised recruitment companies at:
https://www.seco.admin.ch/seco/en/home/Arbeit/Arbeitsvermittlung.html