Fixed-term contract or staff leasing? Comparison for cover and projects

Short answer: For cover or a project lasting a few months, staff leasing is usually faster and more flexible than a fixed-term contract: the agency is the employer, while the company directs the work. A fixed-term contract makes sense when the lawyer stays for a long time and is closely embedded. In Germany, a fixed-term contract without an objective reason is limited to two years (section 14(2) TzBfG).

This comparison is written for heads of legal, heads of compliance and HR leads who are weighing a fixed-term contract against an agency lawyer or compliance professional for cover. It sets out the differences in law, effort and cost in Switzerland and Germany and the criteria for the decision.

The starting point: cover or a project with a clear end

Both models fit when the need is limited in time. Typical triggers are parental or maternity leave cover, long-term sick leave, a vacancy until the role is filled permanently, or a regulatory project.

• Fixed-term contract: The company signs an employment contract with a set end date. It is the employer, with all the duties that come with it: salary, social security, holidays and sick pay.
• Staff leasing: The professional is employed by the staffing provider and works in the company’s team. In Switzerland this is called Personalverleih (Swiss staff leasing, Art. 12 AVG); in Germany Arbeitnehmerüberlassung (German temporary agency work, section 1 AÜG). The company pays an hourly or daily rate and gives the professional instructions on the work.

A third option is freelancing: a self-employed professional works on their own responsibility within an agreed mandate. It suits clearly defined tasks rather than cover that is fully embedded in the team. All three models are compared in freelancing, staff leasing and secondment compared.

Fixed-term contract vs agency lawyer: the comparison

The biggest difference is who acts as employer: the company itself with a fixed-term contract, the staffing provider with staff leasing.

Switzerland and Germany: what differs

Fixed-term employment is more tightly regulated in Germany than in Switzerland. Staff leasing has its own statute in both countries.

Switzerland

• A fixed-term employment relationship ends without notice (Art. 334(1) Swiss Code of Obligations, CO). If the employee carries on working after the end date with no new agreement, the relationship becomes open-ended (Art. 334(2) CO).
• In staff leasing, both the employment contract and the leasing contract must state the term of the assignment or the notice period (Art. 19(2)(c) and Art. 22(1)(d) AVG). For open-ended assignments, shorter minimum notice applies in the first six months: two days in months one to three, then seven days (Art. 19(4) AVG).
• The staffing provider needs a cantonal licence (Art. 12 AVG).

Germany

• Without an objective reason, a fixed-term contract may run for up to two years, with no more than three extensions within that period (section 14(2) sentence 1 TzBfG, the Part-Time and Fixed-Term Employment Act). It is not allowed if the same employer has employed the person before (section 14(2) sentence 2 TzBfG). The Federal Constitutional Court only permits exceptions where the ban would be unreasonable in the individual case (BVerfG, 1 BvL 7/14).
• With an objective reason, a longer fixed term is possible (section 14(1) TzBfG). Cover during maternity protection or parental leave is expressly such a reason, and the term may include the onboarding time needed (section 21(1)–(2) BEEG).
• Temporary agency work requires a licence from the Federal Employment Agency (section 1(1) AÜG). The same professional may work for the same hirer for no more than 18 consecutive months (section 1(1b) AÜG) and is generally entitled to the essential working conditions of comparable permanent staff (section 8 AÜG).

How Swiss staff leasing and German agency work operate in detail is explained in staff leasing of lawyers in Switzerland and Germany.

What does each option cost?

Staff leasing has the higher rate; a fixed-term contract has the higher overheads. A fair comparison counts both in full.

According to Alpinum Solutions’ published ranges (as of 18 October 2026, excluding VAT), an experienced professional (3–6 years) costs CHF 800–1,200 per day in Switzerland and EUR 720–960 per day via staff leasing in Germany. The rate covers salary, social security, holidays and the service.

With a fixed-term contract, the salary comes with:

• employer social security and pension contributions
• internal effort for the job advert, interviews and the contract
• sick pay and holidays during which nobody covers the work
• onboarding, and the risk of a poor hire that the company must replace itself

For cover of three to twelve months, staff leasing is therefore often the more economical option, especially when someone has to start quickly. How rates are built up is covered in cost models for interim legal and compliance.

How to decide in five steps

1. Estimate the duration: how long is capacity certainly missing, and how likely is an extension?
2. Set the start date: by when must someone be working? Running your own recruitment takes time.
3. Define profile and workload: practice area, seniority, languages and a workload between 20% and 100%.
4. Check the legal framework: in Germany, previous employment and objective reason; in staff leasing, the 18-month limit.
5. Compare total cost: the staff leasing rate against salary, overheads and internal effort.

Roles and capacity

For most cover, one experienced professional is enough; Experienced is the most common interim level. Covering a leadership role calls for a senior professional with seven or more years of experience.

Alpinum Solutions provides lawyers and compliance professionals through staff leasing and freelancing, part-time or full-time, from junior to senior. Selected profiles are usually available within 48 hours; the company and Alpinum agree the start date together. The contracting entity is Alpinum Solutions GmbH in Germany and Alpinum Solutions AG in Switzerland.

Limits and risks

Both models have limits that companies should know before the assignment starts.

• Previous employment in Germany: if the person has worked for the same employer before, a fixed term without an objective reason is generally ruled out (section 14(2) sentence 2 TzBfG). Check this before signing.
• Tacit extension in Switzerland: if you miss the end date and let the person keep working, the employment becomes open-ended (Art. 334(2) CO).
• Maximum term for agency work in Germany: the same person may generally work for the same hirer for no more than 18 consecutive months. The limit applies in full to part-time work, not pro rata.
• Direction stays with the company: in both models the company directs the work. Without clear tasks and a named contact, any cover loses time.

Frequently asked questions about fixed-term contracts and staff leasing

Which is better for parental leave cover?

Both work. In Germany, cover during parental leave is a statutory objective reason for a fixed term (section 21 BEEG). Staff leasing makes sense when the company does not want to run its own search or the jobholder’s return date is uncertain. For cover longer than 18 months with the same company in Germany, a fixed-term contract is the better fit.

Can the leased professional be hired permanently later?

Yes. A move into the team (temp-to-perm) is possible; the terms are agreed in advance. This lets the company test the working relationship in practice before deciding whether to take the person on. Raise this option when you first describe your needs.

How quickly can cover start?

With staff leasing, selected profiles are usually available within 48 hours; the company and Alpinum agree the start date together. With your own fixed-term hire, the start depends on the advert, selection and the new person’s notice period, which usually takes considerably longer.

Does the 18-month limit apply in Switzerland?

No. The 18-month maximum is a rule of the German AÜG. In Switzerland, the Recruitment Act requires the employment and leasing contracts to state the term of the assignment or the notice period (Art. 19 and 22 AVG), so the duration is set in the contract.

Who is responsible for the leased professional’s work?

In staff leasing, the company directs the work and is responsible for the results, just as with its own staff. The provider is responsible for selection, employment and payroll. Put tasks, authorities and reporting lines in writing before the start.

Next step

Alpinum Solutions is the leading provider of interim legal & compliance in Switzerland and Germany. Tell us about the cover or project, workload and start date, and we will show you which model fits.

• Staff leasing for legal and compliance
• Planning parental and maternity leave cover in the legal department
• Staff leasing of lawyers in Switzerland and Germany
• Models and legal framework: all guides on engagement models
• Discuss your needs

Last updated: 10 November 2026.