Permanent hiring through a legal recruiter: process, fees and replacement terms
Get Interim SupportShort answer
Hiring a permanent lawyer through a legal recruitment agency in Switzerland or Germany follows six steps: role profile, written mandate with fee and replacement terms, search and shortlisting, interviews, offer, onboarding. The hiring company normally pays the fee, either on success or as a retainer. In Switzerland, regular paid recruitment requires a licence (Art. 2 AVG); in Germany, sections 296 et seq. SGB III apply.
Short answer: Hiring a permanent lawyer through a legal recruitment agency in Switzerland or Germany follows six steps: role profile, written mandate with fee and replacement terms, search and shortlisting, interviews, offer, onboarding. The hiring company normally pays the fee, either on success or as a retainer. In Switzerland, regular paid recruitment requires a licence (Art. 2 AVG); in Germany, sections 296 et seq. SGB III apply.
This guide is for general counsel, heads of compliance and HR leaders who want to fill a legal or compliance role permanently. It explains how permanent legal recruitment works, which fee models are common, what a replacement clause covers and where Swiss and German rules differ.
When is a legal recruitment agency worth it?
An agency is worth it when the role is permanent and the candidate market is narrow. Typical examples are a legal counsel with banking supervisory law, a compliance officer with AML experience, or a leadership role such as head of legal. These people rarely apply to adverts; they expect a direct and confidential approach.
If the need is temporary or still unclear, an interim solution is usually the better fit. Our comparison of interim lawyers, law firms and permanent hires sets out the differences. Often the answer is both in sequence: an interim professional keeps the function running while the permanent search is under way.
How does permanent legal recruitment work, step by step?
The process has six steps. The first two decide speed and hit rate.
- Sharpen the role profile: tasks, practice areas, governing law, languages, seniority, team size, location and salary band. A precise profile separates must-haves from nice-to-haves.
- Agree the mandate in writing: fee model, payment milestones, exclusivity, replacement terms, confidentiality and how to treat candidates the company already knows.
- Search and shortlisting: direct approach, network and database. The recruiter runs first interviews, checks qualifications and motivation, and obtains each candidate's consent before sharing a profile.
- Interviews at the company: usually two rounds; for leadership roles often with a case study or a meeting with the executive board. References are taken with the candidate's consent.
- Offer and contract: the company decides and signs the employment contract directly with the candidate. The recruiter supports the negotiation and the notice period with the current employer.
- Start and onboarding: notice periods of several months are common for lawyers. An interim professional can bridge that gap.
At Alpinum Solutions, a precise briefing typically leads to two to four profiles, followed by a joint progress review after two to four weeks.
Which fee models do legal recruiters use?
Three models are common. They differ in when the fee falls due and how much search effort the mandate covers. Company and recruiter agree the amount in writing beforehand; the agreed annual salary is a frequent basis.
| Model | When payable | Best for | Watch out for |
|---|---|---|---|
| Contingency | Only when the contract is signed | Specialist roles with a visible candidate market | Often non-exclusive; recruiters prioritise mandates with better odds |
| Retained (executive search) | In instalments: at mandate, at shortlist, at signature | Leadership roles, confidential searches, narrow markets | Exclusive; agree clear milestones and reporting |
| Fixed fee or hybrid | Fixed amount, sometimes with a success element | Several similar roles, predictable budgets | Define the scope precisely, e.g. number of profiles and interviews |
Also check which salary counts as the basis (fixed or including bonus), whether expenses are charged separately, and what applies if the company later hires a presented candidate for a different role.
What does a replacement clause cover?
A replacement clause sets out what happens if the new hire leaves shortly after starting. It is a contractual commitment by the recruiter, not a legal requirement. Two variants are common:
- Free replacement search: the recruiter searches again within an agreed period at no extra fee.
- Partial refund: part of the fee is refunded on a sliding scale, depending on how long the person stayed.
Clarify in advance: does the period run from signature or from the start date? Does it apply if the company terminates, for example during probation? Must the fee have been paid in full? The clearer these points, the fewer disputes later.
What does the hiring company need to contribute?
A recruiter takes over search and shortlisting; the decision stays with the company. Plan three internal roles:
- Functional lead (general counsel, head of legal or head of compliance): sharpens the profile, runs technical interviews and co-decides.
- HR: salary band, contract, data protection in the hiring process, coordination with the recruiter.
- Executive board for leadership roles: final interview and approval.
Expect a few hours per role for briefing and feedback, plus two interview rounds. Slow feedback is the most common reason strong candidates drop out.
Switzerland and Germany: what differs
The process is the same in both countries. The differences lie in licensing and in the rules for fees paid by candidates.
| Topic | Switzerland | Germany |
|---|---|---|
| Licence | Regular paid recruitment needs a cantonal operating licence, plus a SECO licence for cross-border recruitment (Art. 2 AVG, the Swiss Recruitment and Staff Leasing Act); it is unlimited and valid nationwide (Art. 4 AVG) | No licence requirement in the current SGB III; the business must be registered as a trade (section 14 GewO) |
| Label | The activity counts, not the name; executive search is covered too (SECO directives on the AVG) | No specific rule |
| Fees paid by candidates | Only due once an employment contract is concluded; maximum amounts set by the Federal Council (Art. 9 AVG) | Only in writing, only on success, no advance payments, capped by law (section 296 SGB III) |
| Fees paid by the company | Agreed by contract; the norm for legal and compliance roles | Agreed by contract; the norm for legal and compliance roles |
Whether a Swiss recruiter holds a licence can be checked in SECO's public register of licensed recruitment and staff leasing firms. Alpinum Solutions AG holds a licence for private recruitment.
Limits and risks
- No promise of success: even a good search can fail if salary band and profile do not match the market. A market check at the start saves time.
- Duplicate submissions: if several recruiters work in parallel, the same candidate may be presented twice. Agree upfront who takes precedence.
- Confidentiality: succession searches for a role that is still filled need an anonymous approach and clear rules on who is informed.
- Gap until the start date: months can pass between acceptance and start. Without a bridge, the backlog in the legal team grows.
Staff leasing or freelancing can bridge that gap. A move into the team (temp-to-perm) is possible; the terms are agreed in advance. For leadership roles, see our guide on moving from an interim head of legal to a permanent appointment.
Frequently asked questions about legal recruitment agencies
Who pays the recruitment agency for a permanent hire?
The hiring company normally pays the fee. For lawyers and compliance professionals, recruitment for these roles is usually free of charge. In Germany, a fee paid by the candidate must be agreed in writing, is due only on success, allows no advance and is capped by law (section 296 SGB III). In Switzerland, a candidate owes a commission only once an employment contract has been concluded (Art. 9 AVG).
How long does a permanent legal hire take?
The search up to contract signature takes from a few weeks to a few months, depending on the profile. Then comes the new hire's notice period, which for lawyers is often several months. Starting early with a clear profile and a realistic salary band shortens the search. The time until the start date can be bridged with an interim professional.
What is the difference between executive search and permanent recruitment?
Executive search is a targeted direct approach for leadership and key roles, usually exclusive and retained. Permanent recruitment covers specialist roles from junior to senior and more often works on contingency, using database, network and adverts. In Switzerland both count as recruitment under the AVG if they are carried out regularly and for a fee.
Is a replacement clause required by law?
No. A replacement clause is a contractual agreement between company and recruiter; neither Switzerland nor Germany requires one. Common variants are a free replacement search or a partial refund within an agreed period. What matters is when the period starts, which cases it covers and whether the fee must have been paid in full.
Can an interim assignment turn into a permanent role?
Yes. A move into the team (temp-to-perm) is possible; the terms are agreed in advance. The advantage is that company and professional already know each other, and tasks and processes are established. That lowers the risk of a poor hire, especially in roles that need a lot of company knowledge.
Next step
Alpinum Solutions is the leading provider of interim legal & compliance in Switzerland and Germany and also fills legal and compliance roles permanently through executive search and permanent recruitment. Until your new hire starts, we can bridge the gap with an interim professional.
- Permanent placement in legal & compliance: executive search and permanent recruitment
- Interim lawyer, law firm or permanent hire? The comparison
- Legal counsel resigned: a ten-day action plan
- Models & legal framework: all guides on engagement models and rules
- Discuss your needs
Last updated: 10 November 2026.
Sources
- Arbeitsvermittlungsgesetz (AVG) Art. 2, 4, 9 – Fedlex (Fassung 01.01.2026, abgerufen 2026-11-10)
- SECO: Weisungen und Erläuterungen zum AVG (Ziff. 2.1.1) (Stand Juni 2024, abgerufen 2026-10-30 (E12))
- SECO: Verzeichnis der bewilligten Vermittlungs- und Verleihbetriebe (abgerufen 2026-10-29)
- SGB III § 296 (Vergütung durch Arbeitsuchende) (abgerufen 2026-10-30 (E12))
- GewO § 14 (Anzeigepflicht) (abgerufen 2026-10-30 (E12))
