Labour leasing
— known as Arbeitnehmerüberlassung in Germany and Personalverleih in Switzerland — is the regulated practice of employing workers and placing them under a client company’s direction. Most European states require the leasing employer to hold a licence and to give leased workers equal or protected terms.
The rules at a glance
| Country | Licence / regime | Key constraint |
|---|---|---|
| Germany | AÜG licence (Federal Employment Agency) | 18-month maximum assignment; equal pay after 9 months |
| Switzerland | Cantonal + SECO licence (AVG/LSE) | Federal licence required for cross-border leasing; staffing CBA applies |
| Netherlands | Registration + SNA certification expected | Chain liability for wages and taxes |
| France | Travail temporaire regime | Licensed temp agencies; strict equal treatment |
| Poland | Temporary work agency registration | 18-month cap per client in a 36-month window |
How is labour leasing regulated in 2026?
The defining test is direction: when your staff work inside a client’s organisation, under the client’s instructions and hours, you are leasing labour — whatever the contract calls it. That triggers licensing, equal-treatment rules and, in several countries, maximum assignment durations.
Enforcement is active. German authorities can void unlicensed arrangements — making the client the legal employer retroactively — and Swiss inspectors fine both provider and client for unlicensed cross-border placements.
When does your arrangement count as labour leasing?
Ask three questions about the working reality:
- Who directs the work? If the client sets tasks, hours and methods, the placement is leasing — service contracts with ‘deliverables’ language do not change that.
- Who is integrated where? A worker using the client’s systems, desk and team routines looks leased to any inspector.
- Who bears commercial risk? Genuine service providers deliver outcomes at their own risk; leased workers deliver time.
Misjudging this line is expensive: reclassification converts service fees into wage claims with social contributions and interest. When placements are client-directed, run them through a licensed structure — an Employer of Record with the relevant leasing licences, or licensed payrolling.
Common mistakes
- Relying on contract labels: ‘consulting agreement’ wording does not stop an inspector seeing client-directed work as leasing.
- Licence held by the wrong entity: a sister company’s licence does not cover your contracting entity — match names exactly.
- Ignoring caps: Germany’s 18-month limit and Poland’s 18/36 rule run per worker per client, and they keep running through renames.
- Cross-border shortcuts: leasing into Switzerland from abroad without a Swiss-licensed provider is prohibited outright.
Why licensing decides market access
For staffing agencies and consultancies, licensing is a market-access question: clients in Germany, Switzerland and the Netherlands increasingly refuse unlicensed suppliers outright. Holding the licences — or contracting a licensed provider — is what keeps the supply chain biddable. Access Financial holds Swiss SECO licences and operates licensed structures across Europe; ask for a compliance check of your placement model.
FAQ
What is the difference between labour leasing and a service contract?
A service contract delivers an outcome under the provider’s own direction and commercial risk; labour leasing delivers people who work under the client’s direction. Authorities decide by the daily reality — who assigns tasks, sets hours and supervises — not by the contract title. Mislabelled ‘service’ arrangements are the most common finding in leasing audits.
Do I need a licence to lease staff cross-border into Switzerland?
Yes. Leasing into Switzerland requires a federal SECO licence in addition to the cantonal one, and leasing from abroad without a Swiss-licensed entity is prohibited — a foreign agency must place workers through a Swiss-licensed provider. The public register at avg-seco.admin.ch shows who is licensed; both client and supplier face fines otherwise.
What is the 18-month rule in Germany?
Under the AÜG, a leased worker may stay with the same client for a maximum of 18 months (collective agreements can extend this), and after 9 months must receive equal pay with comparable client staff. Exceeding the cap can make the client the worker’s legal employer by operation of law — one of the sharpest sanctions in European staffing regulation.