Companies operating in regulated markets such as energy or telecommunications often face the same question:
How can we deploy qualified specialists quickly – without exposing ourselves to legal risk?
In countries such as Germany and Switzerland, employment and engagement models are highly regulated. Any company looking to work with external specialists must understand the relevant local frameworks.
Two key models are commonly used:
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AÜG (Arbeitnehmerüberlassung) in Germany
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SECO-regulated staffing in Switzerland
Both allow companies to engage skilled professionals flexibly – but under clearly defined legal rules.
In this article, we explain the differences and outline when each model makes sense.
AÜG in Germany: Labour Leasing Explained
Arbeitnehmerüberlassung (AÜG) is a legally regulated model in which an employee is assigned by one company (the provider) to another company (the client). The employee remains employed by the provider.
In practice, this means:
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The staffing provider is the legal employer
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The client company manages the day-to-day work
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Payroll, social contributions and contracts are handled by the provider
To supply labour leasing services in Germany, a provider must hold an official AÜG licence issued by the Federal Employment Agency.
This model is frequently used when companies:
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need specialists for short-term projects
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need to scale teams temporarily
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require legal certainty when engaging external talent
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want to test new roles before committing to permanent hires
One important aspect of German legislation is the maximum assignment duration, which is generally limited to 18 months with the same client company.
When AÜG Is Particularly Useful
In Germany, many organisations rely on AÜG when projects need to scale quickly.
Typical use cases include:
Project-based infrastructure programmes
For example network rollouts, energy infrastructure projects or digital transformation initiatives.
Highly specialised technical roles
Such as engineers, project managers or network planners.
International companies without a German entity
AÜG allows companies to deploy specialists without becoming the direct employer in Germany.
For businesses, this means:
flexibility combined with full legal certainty.
SECO in Switzerland: Regulated Staffing
Switzerland also regulates the engagement of external professionals. The responsible authority is the State Secretariat for Economic Affairs (SECO).
Companies that provide staffing or labour leasing services must obtain a SECO licence.
Similar to the AÜG model:
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The staffing provider is the legal employer
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Professionals are deployed on projects at the client organisation
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Payroll, social contributions and employment contracts are fully managed by the provider
In addition, SECO-regulated models often include:
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Management of work permits (e.g. G or B permits)
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Swiss social security contributions and tax deductions
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Local compliance checks for international workers
This model becomes particularly important for cross-border projects.
When SECO Hiring Is Used
SECO-compliant staffing models are typically used when:
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international specialists need to work in Switzerland
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project teams must be built quickly
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companies do not have their own Swiss legal entity
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complex compliance requirements apply
This model is widely used in sectors such as telecommunications, IT and energy, where highly specialised professionals are needed for project-based work.
AÜG vs. SECO: Key Differences
| Topic | AÜG (Germany) | SECO (Switzerland) |
|---|---|---|
| Legal framework | Arbeitnehmerüberlassungsgesetz | Employment Services Act / SECO |
| Licence required | Yes | Yes |
| Employer | Staffing provider | Staffing provider |
| Type of engagement | Temporary labour leasing | Temporary workforce placement |
| Typical use cases | Project work, infrastructure programmes | Cross-border projects, specialist roles |
Why Compliance Matters in Hiring Models
In regulated markets, simply engaging a freelancer is often not sufficient.
Poorly structured engagement models can quickly lead to risks such as:
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worker misclassification
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tax liabilities
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employment law disputes
This is why many organisations rely on licensed models such as AÜG or SECO.
They allow businesses to deploy specialists quickly – without legal uncertainty.
How RIZE Supports Businesses
At RIZE, we work daily with organisations delivering complex projects across Germany and Switzerland.
Through our AÜG and SECO licences, we enable:
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compliant hiring without establishing a local legal entity
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rapid deployment of specialised professionals
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fully managed payroll and compliance processes
Our consultants understand both the market and the regulatory environment, helping companies structure the right engagement model for each project.
Because successful projects do not start with a CV.
They start with the right hiring model.
Conclusion
Choosing the right hiring model has become a strategic decision.
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AÜG provides legally compliant labour leasing in Germany
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SECO enables compliant hiring in Switzerland
Both models create flexibility – as long as they are structured correctly.
Companies looking to scale projects successfully should therefore ask an important question early on:
Which engagement structure best fits our project and our market?
