NACE 78.1 – Activities of Employment Placement Agencies | Public Tenders

Definition: NACE 78.1 covers employment placement, i.e. matching employers and workers without the placement agency acting as the employer itself. In the public sector, recruitment services are tendered for filling positions in public authorities and institutions.

Legal basis: NACE Rev. 2 (Regulation (EC) No 1893/2006) · Last updated: January 2026

What does NACE 78.1 cover?

NACE 78.1 (Activities of employment placement agencies) classifies companies that act as intermediaries between jobseekers and employers — without entering into employment relationships with the placed individuals themselves.

Group 78.1 within Section N (administrative and support service activities) and Division 78 (employment activities) comprises one class:

Public contracting authorities under NACE 78.1 are HR departments of federal authorities, regional administrations, municipalities, public universities, state-owned companies and public-law institutions.

Public Tenders: NACE 78.1 in Practice

Recruitment for the public service is a growing tender segment — given skills shortages in administration and the demand for specialist managers in public undertakings.

Typical types of contract

• Executive search and headhunting: Targeted direct approach and identification of executives for senior positions in public authorities and undertakings
• Job placement for specialists: Placement of IT specialists, doctors, engineers and other scarce professions in public institutions
• Assessment centres and aptitude diagnostics: Conduct of structured selection procedures and potential analyses for management trainees
• Outplacement services: Support for staff in career reorientation (e.g. after authority mergers)
• Job advertising consultancy: Design and placement of job advertisements in specific channels for public authorities
• Career and coaching services: Individual counselling for civil service staff

Thresholds and procedure types

Recruitment services are awarded as service contracts. They fall under "social and other specific services" pursuant to Annex XIV of Directive 2014/24/EU, for which a simplified procedure applies from a threshold of EUR 750,000. Below this value, national procedures may be applied.

Relevant CPV Codes for NACE 78.1

Recruitment services for public contracting authorities are tendered under specific CPV codes that enable targeted searches on TED and national platforms.

Current tenders with these CPV codes are published on TED (Tenders Electronic Daily) and on national procurement platforms.

Who is NACE 78.1 relevant to in procurement law?

Public Contracting Authorities

Recruitment is tendered primarily where authorities are looking for highly specialised or hard-to-find skilled workers, or where management positions in public undertakings need to be filled discreetly. Typical contracting authorities include HR departments of ministries for leadership functions, public hospitals for shortage medical specialities, universities for professorships and municipal utilities for technical directors.

Companies and Bidders

Recruitment companies participating in public tenders typically need to:

• Employment agent authorisation: In Germany under § 297 SGB III; in Austria under the AMFG
• Industry expertise: Evidence of specialist industry knowledge (e.g. public sector, healthcare, IT)
• Methodology and quality standards: Documented approach to candidate identification, aptitude diagnostics and interviewing
• Reference contracts: Comparable placement services for public contracting authorities or similar organisations
• Data protection: GDPR-compliant processing of candidate data

NACE 78.1 in Context: Section N and Division 78

NACE 78.1 is part of Division 78 (employment activities) within Section N — with a close boundary to temporary employment agency activities (NACE 78.2).

• NACE N – Administrative and support service activities: Parent section
• NACE 78 – Employment activities: Division covering all employment services
• NACE 78.2 – Temporary employment agency activities: Temporary employment in the public sector
• NACE 78.3 – Other human resources provision: Specific labour supply

Frequently Asked Questions on NACE 78.1 and Public Tenders

Which companies fall under NACE 78.1?
Recruitment agencies, headhunting firms and executive search consultancies that act as intermediaries between employers and candidates — without becoming the employer of the placed individuals themselves.

What is the difference between recruitment (78.1) and temporary employment (78.2)?
In recruitment (78.1), the employment relationship arises directly between the candidate and the contracting authority. In temporary employment (78.2), the agency remains the employer and supplies the person to the contracting authority. The two forms are treated differently under procurement law.

Is engaging a headhunter subject to procurement obligations?
Yes — above the relevant thresholds. Recruitment services are among the "social and other specific services" and are subject to EU procurement law above EUR 750,000 with a simplified procedure.

Can a public contracting authority directly engage a specific headhunter?
Direct award without competition is only possible where the uniqueness of the service can be demonstrated — rarely justifiable in practice. For executive search, negotiated procedures are frequently used.

Last updated: January 2026
All information is provided without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.