Global Workforce: The best practice approach to GECs - Tax and Legal blog

GES_20180409_blog_Global Workforce Management_banner

We are pleased to announce the release of our latest Global Workforce publication, which examines the best practice approach to Global Employment Companies (GECs) and the impact of the directive issued on 20 June 2017 by the Swiss Office of Economic Affairs (SECO) on the treatment of intragroup loan staffing arrangements in Switzerland.

GECs are typically companies that centrally hire employees for purposes of loaning them to group affiliates. The publication covers how the use of GECs has evolved over time, the main considerations for determining if a GEC is the right option and whether an alternative deployment or service delivery model may be more suitable. It also examines the question “to GEC or not to GEC?” and details some of the key GEC success factors, as well as actions existing GECs should consider in light of the worldwide corporate governance and responsible tax debate.

A full copy of the publication is available here.

Publication highlights

Some of the topics addressed in the publication include:

  • Reasons for setting up GECs and typical GEC locations
  • Key questions to consider when deciding to use a deployment or service delivery model as an alternative to a GEC
  • Best practices for setting up GECs and for existing GECs
  • Important considerations for establishing a GEC in Switzerland

Switzerland traditionally has benefited from legislation that flavors the incorporation of GECs and is home to a number of such service companies. This, however, could change in the future due to the revised government guidance in the aforementioned directive issued by the SECO. Under the directive, secondments of staff by non-Swiss GECs into Switzerland are deemed to be unacceptable loan staffing arrangements. In addition, Swiss-based GECs now may be required to register for loan staffing permits to continue operating. 

Since SECO directives are applied by the cantonal authorities, companies should verify the local consequences of the directive before making any changes to current loan staffing structures. 

If you are interested in this topic, please contact Per Melberg for further information.


Renaat Van den Eeckhaut – Partner, Global Employer Services Leader Switzerland and EMEA

Renaat leads the Global Employer Services (GES) Practice for Deloitte Switzerland and EMEA. He specialises in international assignment and cross-border employment matters and advises on tax, social security and international mobility policies. Renaat has nearly 20 years of experience with Deloitte Belgium and Switzerland and has worked with many companies across a broad range of industries. Renaat holds a Master in Law and Accounting Law and has authored many publications on international taxation.



David Wigersma - Partner, Global Employer Services

David has 17 years of experience in the area of international corporate and individual taxation planning. He specialises in addressing the complex compliance needs of a cross-border workforce with varied elements of compensation.


Karin Verheijen.110x110

Karin Verheijen - Partner, Global Employer Services

Karin leads our Global Employer Services (GES) practice in Basel. Karin has more than 20 years of experience providing Swiss and international tax and global mobility advice. She is specialised in providing technical support to international assignees, coordinating global programs as well as supporting companies with managing their international mobility programs.


Per Melberg.110x110

Per Melberg - Director, Global Employer Services 

Per joined Deloitte on 1 July 2014. His global mobility career started as an international tax adviser in 1992 in Denmark. He was assigned to Switzerland in 1999, where he became responsible for a number of multinational companies. Per specialised in developing processes for international employer obligations and setting up global employment structures. Recently he was Head of Global Mobility for two large multinational groups for which he developed and managed their global mobility programs.



Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.


Post a comment

Comments are moderated, and will not appear until the author has approved them.