In today's dynamic economy, flexibility is crucial. Employee leasing, also known as temporary work or agency work, offers companies a way to react quickly and efficiently to changes in the market or in staffing needs. But what is actually behind the term, and what legal framework conditions must be observed? In this article, we shed light on the basics and provide corporate clients with important information on employee leasing in Germany.
What is employee leasing?
Employee leasing refers to the lending of workers by one (lender) to another company (hirer) for a limited period of time. In this case, the employment relationship between the lender and the employee remains in place, but the actual work performance takes place with the hirer.
Legal framework
Temporary employment in Germany is strictly regulated and subject to the Temporary Employment Act (AÃœG). The law stipulates that companies wishing to hire out workers must have a permit to do so. In addition, the conditions such as working hours, remuneration and holiday entitlement must generally be such that they are not worse for the temporary worker than those for a comparable employee of the hirer.
Important points regarding the AÃœG:
Maximum Temporary Employment Period: According to the AÃœG, a worker may not be hired out to the same hirer for more than 18 consecutive months.
Equal treatment principle: Temporary agency workers are entitled to the same working conditions - including pay - as comparable workers of the hirer.
No Chain leasing: So-called "chain hiring out", where a temporary worker is hired out several times to the same hirer without a relevant time between, is not permitted.
Advantages of temporary employment
Flexibility: Rapid adaptation to order situation and market conditions.
Cost efficiency: Reduction of costs for personnel recruitment.
Bridging skills shortages: Specialised workers can be hired for short periods of time.
Risks and challenges
Failure to comply with legal requirements can have significant legal consequences. These include heavy fines and the possibility of reinterpretation of the employment relationship, whereby the temporary worker could be considered a regular employee of the hirer.
Conclusion
Temporary work is a powerful tool for companies to remain flexible and efficient. However, it is essential to thoroughly understand the legal framework. Before you take the step into employee leasing, you should therefore seek comprehensive legal advice.
How we can help
If you have any questions or would like individual advice, please do not hesitate to contact us. Our lawyers can provide you with detailed information and tailor-made solutions.