Welcome to Staff-Leasing-Germany, an information offering by the HK2 Rechtsanwälte law firm in Berlin!

Here we offer international organizations information about temporary employment (staff leasing, labor leasing) and personnel assignments in Germany. We provide an overview of the legal framework and the related challenges that may arise when deploying personnel in Germany.

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License

Violation of equal treatment and equal pay principles

Pursuant to sec. 8 (1) sentence 1 of the Law on Temporary Employment (AÜG, Arbeitnehmerüberlassungsgesetz), the temporary employee assigned must be granted for the period of assignment to the hirer the essential working conditions including remuneration applicable in the hirer’s business for a comparable employee of the hirer. This rule for equal treatment compared to the…

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License

Violation of the disclosure principle

Sec. 1 (1) sentence 5 of the Law on Temporary Employment (AÜG, Arbeitnehmerüberlassungsgesetz) stipulates that all cases which German law defines as temporary employment must also be contractually designated as temporary employment. If external personnel are assigned and German law defines this as temporary employment, but the parties to the contract do not designate it as such, this…

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License

Assignment of temporary employees without a license

The German Law on Temporary Employment (AÜG, Arbeitnehmerüberlassungsgesetz) provides for fines to be imposed in a host of cases. These are laid down in sec. 16 AÜG. One case, for instance, is the assignment of employees without a license. This is called illegal temporary employment without a license. A person who assigns a temporary employee or…

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Temp Work

Staff leasing/ staffing

Staff leasing or staffing is only possible in Germany in conjunction with a license to operate a temporary employment agency. Staff leasing or staffing is the assignment of qualified employees under leasing conditions. Responsibility for wages, taxes and compliance with requirements passes to an external service provider. This service provider performs all administrative operations and…

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Temp Work

Payrolling

Companies that offer payrolling in Germany require a license to operate temporary employment agency. Payrolling means that the service provider co-ordinates the contract and wage administration for employees who may be recruited and selected directly by the customer’s HR department. The employees work directly at the customer. The service provider assumes all legal obligations in…

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License

Fine proceedings

In recent years, fine proceedings have become increasingly important. Since denial of the license is often not proportionate, the Federal Employment Agency (Bundesagentur für Arbeit) has started to impose fines for violation of the German Law on Temporary Employment (AÜG, Arbeitnehmerüberlassungsgesetz). The fines are sometimes quite high. The fine for failure to correctly apply the…

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License

Verification procedure of the Federal Employment Agency (Bundesagentur für Arbeit)

The verification procedure of the Federal Employment agency focuses on the following parameters: Application of collective agreements within the meaning of sec. 8 (2) of the German Law on Temporary Employment (AÜG, Arbeitnehmerüberlassungsgesetz), (including collective agreements on industry surcharges) (read more about collective agreements and about industry surcharges) Granting of equal pay after nine months If no…

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License

Preconditions for granting a license to operate a temporary employment agency

Temporary employment agencies require a license in Germany (read more…). Apart from the absence of grounds for denial which are reflected by the applicant’s conduct (read more…), the applicant must also have appropriate legal and industry knowledge for the required reliability.   Legal and industry knowledge Applicants without relevant experience in the temporary employment sector…

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