Which EOR is best for DACH compliance? The one that can show a valid staff-leasing licence in each country you hire in. In Germany and Austria the provider needs a leasing licence or trade authorisation. In Switzerland it needs a cantonal licence held by a Swiss entity in the commercial register, because leasing from abroad into Switzerland is not allowed.
Germany is the strictest on time: the same worker can be placed with your company for no more than 18 consecutive months. Austria and Switzerland set no maximum period like this, but all three require leased workers to get pay comparable to the client's own staff or the applicable collective agreement.
| Rule | Germany | Austria | Switzerland |
|---|---|---|---|
| Law | Arbeitnehmerüberlassungsgesetz (AÜG) | Arbeitskräfteüberlassungsgesetz (AÜG) | Arbeitsvermittlungsgesetz (AVG, SR 823.11) |
| Licence | Leasing licence from the Federal Employment Agency (§ 1(1)) | Labour leasing is a regulated trade requiring proof of qualification | Cantonal operating licence; the business must be in the Swiss commercial register (arts. 12–13) |
| Leasing in from abroad | Through a licensed provider | A foreign leasing company must be lawfully established for the activity in its home state | Not permitted (art. 12(2)) |
| Maximum assignment | 18 consecutive months per worker and client; earlier assignments count unless the break was over three months (§ 1(1b)) | No general maximum; after four years, a client with a defined-benefit company pension takes on pension obligations (§ 10(1a)) | No maximum; open-ended assignments are allowed (art. 19(4)) |
| Pay | Equal treatment with comparable employees from day 1, unless a temporary-work collective agreement applies (§ 8) | Appropriate, locally customary pay, taking account of comparable employees at the client (§ 10(1)) | If the client is under a generally binding collective agreement, its pay and hours rules apply (art. 20) |
| If the rules are breached | Employment with your company is deemed to exist; fines up to €30,000 | See the Austria guide | See the Switzerland guide |
Statutory employer costs on top of salary at the mid-level example salary in each of our guides, plus an EOR fee of US$599 a month converted at the US Treasury rate:
| Germany | Austria | Switzerland | |
|---|---|---|---|
| Example salary | €65,000 | €60,000 | CHF 120,000 |
| Employer costs on top | 22.6% | 29.6% | 10.2% |
| EOR fee per month | €528 | €528 | CHF 500 |
| Total a year through an EOR | €85,994 | €84,078 | CHF 138,243 |
These providers appear in our guides for all three countries. The columns show how each says it employs staff there, from its own documentation. Where it says "confirm", ask the provider for its licence before you sign.
| Provider | Germany | Austria | Switzerland |
|---|---|---|---|
| Deel | Confirm entity and AÃœG licence | Confirm leasing licence | Confirm Swiss entity and staff-leasing licence |
| Remote | Owned entities (provider's stated model); confirm AÃœG licence | Owned entities (provider's stated model) | Owned entities (provider's stated model) |
| Globalization Partners (G-P) | Confirm entity and AÃœG licence | Confirm leasing licence | Confirm Swiss entity and staff-leasing licence |
| Atlas HXM | Own legal entities (provider's stated model); confirm entity and AÃœG licence | Own legal entities (provider's stated model) | Own legal entities (provider's stated model) |
| Germany (GmbH) | Austria (GmbH) | Switzerland (GmbH or AG) | |
|---|---|---|---|
| Official recurring fees | About €300 a year for a small GmbH in Munich: chamber of commerce dues, register and filing fees, the transparency register and the broadcasting levy. Tax adviser fees follow a statutory scale (GmbH running costs). | Filing the annual accounts with the commercial register costs €44 electronically. Chamber of commerce (WKO) dues are a base fee set by each trade group, plus 0.28% chamber levy 1 on input VAT (not charged up to €150,000 turnover) and chamber levy 2 of 0.31–0.40% of payroll, by state (2026). | No annual commercial register fee. |
| Audit for a small company | A small GmbH needs no audit: two of €7.5 million balance sheet, €15 million revenue, 50 employees. | A small GmbH needs no audit (two of €6.25 million balance sheet, €12.5 million turnover, 50 employees) unless the law requires it to have a supervisory board. | A limited audit is required, but a company with no more than 10 full-time positions can opt out with all shareholders' consent. |
- Which entity employs my hire in each country, and can you send a copy of its leasing licence (Germany), trade authorisation (Austria) and cantonal licence (Switzerland)?
- In Germany, how do you track the 18-month limit, and what happens at month 18?
- Which collective agreement applies in each country, and how do you set pay against comparable employees at my company?
- In Switzerland, is your Swiss entity in the commercial register, and which canton issued its licence?
- Who bears the cost if an arrangement is found to breach the leasing rules?
Which EOR is best for DACH compliance?
Is an Employer of Record legal in Germany, Austria and Switzerland?
Does the 18-month limit apply in Austria and Switzerland?
Can a foreign EOR employ staff in Switzerland?
Which DACH country has the highest employer costs?
- 1Germany: Temporary Employment Act (Arbeitnehmerüberlassungsgesetz, AÜG)
Federal Ministry of Justice (gesetze-im-internet.de)
§ 1(1): leasing requires a licence; § 1(1b): no more than 18 consecutive months with the same client; § 8: equal pay from the start, which a collective agreement may defer for the first nine months.
- 2Germany: Employee leasing licence (Arbeitnehmerüberlassung)
Bundesagentur für Arbeit
The authority that issues and supervises AÃœG licences.
- 3Austria: Arbeitskräfteüberlassungsgesetz (AÜG) and labour leasing licensing
RIS (Bundeskanzleramt) / Unternehmensserviceportal
Definitions (§ 3), substance over form (§ 4) and pay of leased workers (§ 10); labour leasing as a regulated trade requiring proof of qualification (USP).
- 4Switzerland: Arbeitsvermittlungsgesetz (AVG), SR 823.11
Fedlex (Swiss federal law)
Staff leasing: cantonal licence and ban on leasing from abroad (art. 12), conditions (art. 13), deposit (art. 14), written employment and leasing contracts (arts. 19, 22). Stand am 1. Januar 2026.