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For recruiters placing anywhere in the world with Swiss clients

 They accept client ownership must transfer contractually to duly registered and regulated Swiss companies holding both licences which guarantee compliance.  Those licences are not simply to make payments.

According toItsInternational, very few know this same rule may apply to a recruiter not holding those licences when making a placement outside Switzerland for its Swiss-based client.  If you are faced with this situation, seek specific advice because rules on the provision of labour services for Swiss-based clients are complex and often contradictory.

Generally,ItsInternationalsuggests there are two alternative ways to run the contract chain. One is probably more palatable for recruiters than the other.

1.     You can contract with an international umbrella which then contracts with your Swiss client and your placement.

However, your client is likely to require the umbrella to hold a Swiss Labour Leasing Licence and, depending on the country in which the work will be performed, a licence to employ and payroll your placement there, wherever it is in the world.

To satisfy a requirement potentially arising from a subsequent internal or external audit, your client may insist on seeing proof of the licences.

Your client has to comply with Swiss law by contracting directly with the umbrella and paying them.

You are left to invoice the umbrella for due commission.

2.     If you allow a placement to operate the assignment through their own non-Swiss personal service company (PSC) or as a registered self-employed individual, the PSC or the freelancer must contract directly with the Swiss client.

You would be left with a & lsquo;margin only’ deal requiring you to invoice the PSC or freelancer for due commission and trust you are paid accurately and on time.

Because local & lsquo;Chain Law’ could expose your Swiss client to tax and labour law issues, this second option is unlikely to curry favour with them.

This option probably holds no appeal for recruiters.

Please contactItsInternational when you are next making placements either in Switzerland or elsewhere across the EU.

ItsInternational facilitates special immigration, tax management and payment services for interims and consultants on fixed term assignments in many countries across the world including Switzerland. We offer solutions which address & lsquo;risk’ to protect you and your clients as well as a range of services to enable your valuable placements to realise highly desirable income retentions from their assignments. We look forward to hearing from you and your sales consultants very soon.


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