Staff leasing Germany
Your legal advisors for staff leasing in Germany

Handelsblatt Auszeichnung Beste Anwälte 2021

Your personal contact

Jörg Hennig - AMETHYST Rechtsanwälte

Jörg Hen­nig

Lawyer

+49 (0)30 236 252 90


Anika Nadler - AMETHYST Rechtsanwälte

Ani­ka Nadler

Lawyer

+49 (0)30 236 252 90

Staff Leasing Germany: Planning to supply employees to a company in Germany? Launching a staffing business or facing an AÜG licence issue?

AMETHYST Rechtsanwälte advises German and international companies on labour leasing, AÜG licensing and compliance with German employment law.

We support you from the initial assessment and licence application through audits, regulatory proceedings and disputes with the Federal Employment Agency (Bundesagentur für Arbeit):

Planning labour leasing in Germany? Get legal advice before the labour leasing begins.

Your Specialist Lawyers for Staff Leasing in Germany

Staff leasing is a specialised area of law in which licensing, employment contracts, remuneration and regulatory compliance are closely connected. General labour law advice may not be enough when a company is applying for a licence, preparing for an audit or defending against regulatory action.

AMETHYST Rechtsanwälte advises German and international companies on employee leasing and the AÜG. According to our firm's experience figures, our lawyers have handled more than 1,000 proceedings relating to labour leasing and have over 25 years of experience with AÜG licence, audits and proceedings involving the Federal Employment Agency.

Do You Need an AÜG Licence in Germany?

Under the German Temporary Employment Act (Arbeitnehmerüberlassungsgesetz – AÜG), companies generally need a licence if they supply employees to another company and the arrangement qualifies as employee leasing.

The decisive issue is how the work is actually organised: If employees are integrated into the client's organisation and subject to its instructions, the arrangement may constitute staff leasing — even if the contract describes it as project work, outsourcing or payrolling.

The rules can also apply to foreign companies supplying personnel to German clients. At the same time, genuine service contracts, contracts for work and certain statutory exceptions may be treated differently.

Unsure whether your business model requires a licence? We assess the arrangement and explain the legal requirements before you commit to a particular structure.

Who Needs a Temporary Employment Agency Licence in Germany?
What Is Labour Leasing in Germany?
Distinction Between Service Contracts and Contracts to Produce a Work

AÜG Licence Application: From Planning to Approval

If your business requires an AÜG licence, it must generally be granted before labour leasing begins. The application is submitted to the competent Federal Employment Agency and involves more than completing a form.

The authority examines whether your company can operate lawfully, including whether it has the necessary reliability, organisation, financial resources and employment-law compliance arrangements.

Depending on your business and circumstances, the application may require corporate documents, employment and employee-leasing contracts, insurance certificates, financial evidence and additional records. Foreign applicants may need documents from their home jurisdiction, sometimes with certified German translations.

Our lawyers coordinate the process, identify potential issues early, prepare the documentation and communicate with the authority. We also help you build a sound foundation for future audits and licence renewals.

Our support includes:

Foreign Companies: Enter the German Market With Confidence

Cross-border staff leasing raises questions that go beyond the AÜG licence itself. Companies may need to address German employment requirements, documentation from their home country, the correct contractual structure and the practical organisation of staff leasing.

Whether you are an established staffing provider, an international group or a business planning its first labour leasing in Germany, the legal assessment should reflect your specific setup — not just the wording of your contracts.

We advise foreign personnel providers on German AÜG requirements, licence applications and cross-border personnel arrangements. Our aim is to help you identify obstacles early and avoid preventable delays or compliance risks.

AÜG Audits and Ongoing Compliance

Obtaining an AÜG licence is only the beginning. Companies must continue to meet their obligations throughout their staff leasing operations.

The Federal Employment Agency may examine matters such as equal treatment and equal pay, collective agreements, wage classification, remuneration during illness or periods without an assignment, working-time accounts, employment contracts and the maximum assignment period.

Errors in these areas can lead to demands for corrective action and, depending on their nature and seriousness, further regulatory consequences. A structured compliance review can help identify problems before they escalate.

We help companies prepare for audits, review their documentation and working practices, and develop practical solutions to identified weaknesses.

AÜG Licence Audit Procedure
Equal Treatment and Equal Pay
Fine Proceedings on Temporary Employment

AÜG Licence Refused or at Risk? Protect Your Business!

A refusal, non-renewal, withdrawal or revocation of an AÜG licence can have serious consequences for a staffing business. The underlying concerns may involve remuneration, collective agreements, social-security obligations, working-time rules, contracts or doubts about the company's reliability.

If the Federal Employment Agency has raised concerns, do not wait until the situation escalates. The allegations, applicable legal requirements and available response options should be assessed promptly.

Our lawyers analyse the authority's position, develop a case-specific response strategy and represent companies in administrative proceedings and, where necessary, court proceedings. We also advise on corrective measures that can demonstrate how future compliance will be secured.

Denial or Revocation of the AÜG Licence
Fine Proceedings on Temporary Employment

At a Glance: Our Services for Your Business

We can assist with:

Our approach combines legal analysis with practical advice tailored to your business model and the issues you need to resolve.

Take the Next Step Before You Deploy Employees

Whether you are establishing a staffing business, bringing employees to Germany from abroad, reviewing an existing staff leasing arrangement or responding to the Federal Employment Agency – early advice can help you make informed decisions and reduce avoidable risks.

Tell us about your project or current AÜG issue. We will help you identify the relevant legal questions and the next steps.

What does labour leasing (Arbeitnehmerüberlassung – ANÜ) in Germany imply?

Labour leasing or staff leasing implies that an employer contracts out his employee to a third party (hirer). Once contracted out, the employee will receive his wages from the employer, yet is subjected to the instructions issued by the party hiring the employee. This type of employment is governed by special rules and regulations in Germany and is only permitted to agencies that have been issued the respective license.

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How do I obtain a license for labour leasing?

An AÜG-license is mandatory in Germany in order to perform staff leasing services. The license must be applied for from the Federal Employment Agency and in principle is initially valid for one year. In addition to a processing fee of EUR 377.00, a lot of documents must be submitted, such as the completed application form, certificates from the employer’s liability insurance company and proof of liquid funds to name a few. We are happy to assist you with your application and to help you prepare the correct paperwork.

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Refusal or revocation of license

Not all applications for a license to operate a temporary employment agency are approved. The Federal Employment Agency may refuse to issue a license if circumstances justify the assumption that the applicant is unreliable, fails to meet its obligations or fails to comply with working conditions for its temporary employees. Furthermore, it is possible that a license which has been issued is revoked. We are happy to provide information about the cases for which this may apply and what your options are in response to this.

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AUG License procedure of the Federal Employment Agency (Bundesagentur für Arbeit)

Our lawyers know what the verification procedure by the Federal Employment Agency focuses on to issue an AUG license. The most important items refer to the compliance with working conditions for the employees, such as payment of the minimum wage, equal pay, accurate payment of social security contributions or compliance with the maximum time limit for the assignment of temporary employees. Together, we conduct a comprehensive verification procedure with you which constitutes the basis for successful application for the labour leasing license.

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Labour leasing – contract to produce a work (Werkvertrag) vs. service contract (Dienstvertrag): distinction and relevance

Labour leasing is defined as an employee being sent by his employer to a third party where said employee must follow the instructions issued by that very third party. However, where a contract to produce a work has been signed between a work contractor and a party commissioning the work, there is no respective right to issue instructions. The work contractor owes the party commissioning the work a certain 'success', such as the (successful) repair of a car. In contrast, where a service contract has been signed, the service provider merely owes the proper performance of the service – but not its success. For example, the party performing a service under a contract for medical treatment commits to providing proper treatment, but does not guarantee the patient's recovery.

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Who requires a license for labour leasing?

All national or international employers hiring out their employees to another organization require a license for labor leasing. Even if the company categorizes the work of its employees as payrolling or project work, labour leasing applies where the employee is paid by his employer yet works at a third-party location. A license is mandatory for this.

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Our service

When it comes to staff in particular, legal requirements should be strictly adhered to. Staff leased out without holding the required license may be subject to a fine of up to EUR 500,000.00. Our lawyers are specialized in temporary employment, have many years of experience in this field and represent your interests vis-à-vis the Federal Employment Agency.

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Employee leasing from abroad with “employer of record” without activity in Germany — subject to licensing according to the AÜG?

It happens more and more often: A foreign company “transfers” employees, such as IT specialists, from abroad to Germany. However, these workers perform their work exclusively remotely and never set foot on German soil in connection with their work. They are employed by the foreign company and work — as is usual for IT staff — very largely without instructions, but there is at least regular coordination with the German client, so that as a rule it can be assumed that they are working under instructions in the legal sense (no freelancers). Is the company nevertheless subject to the licensing requirement of the AÜG?

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