Category Archive: Temporary Workers

Temporary workers and thresholds – When does a temporary worker count as a normal employee?

Temporary work is a hybrid in employment law and thus leads to many problems: Although there is an employment contract with the leasing company, the employee works for another company. The question of assignment to one of these companies arises in many aspects of German labor law. In particular, where the number of employees is …

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Revision of the Law on Temporary Work from 1 April 2017

The German Parliament (Bundestag), with the approval of the Federal Council (Bundesrat), has passed amendments to the “Law on Temporary Work”. The new rules will enter into force on 1 April 2017 and do not only have impact on leasing personnel but also on work and service contracts. The key changes introduced by the reform …

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Update on German Labour Leasing Laws – Coalition Agreement

According to Federal Minister Andrea Nahles (SPD), the coalition have now made a breakthrough on proposals to amend the German labour leasing laws. After a meeting of the coalition committee on 10 May 2016, the participants agreed on “clear rules” for employees and employers. They clearly agreed on the principle of “Equal pay for work …

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Proposed changes to labour leasing laws

Following announcements since the last general elections, a proposal has now been made to amend existing labour leasing laws. A legislative proposal was circulated in November and focuses on the following key aspects: Maximum duration: Temporary work by way of labour leasing shall be limited to a duration of 18 consecutive months with the same …

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Temporary agency workers cannot be charged with ‘negative’ working hours

A temporary employment agency is not allowed to charge an agency worker’s working time account with ‘negative’ hours, whenever the worker is not rented out to a client. The regional labour court Berlin-Brandenburg ruled such action to be a violation of the German Commercial Agency Work Act (Arbeitnehmerüberlassungsgesetz, AÜG). The agency worker’s right to remuneration …

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The perils of works agreements: Employment contract with the company despite licensed supplier in the case of fake framework service contracts

When companies lease out workers on the basis of work or service contracts (Werk- oder Dienstverträge), they often also hold a license to supply agency workers in terms of sec. 1 I 1 of the German Act on Regulating Commercial Agency Work (Arbeitnehmerüberlassungsgesetz, AÜG) in order to avoid the establishment of an employment relationship between …

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Waited long enough?

Times during which a temporary worker was incorporated into the operation of the leasing company may, in case thereafter a contract between himself and the leasing company is concluded, not be considered as waiting time to trigger the applicability of the German Dismissal Protection Act (Kündigungsschutzgesetz, KSchG). This was decided by the  Federal Labour Court …

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Temporary workers stay temporary workers

 The German Federal Labour Court (Bundesarbeitsgericht, BAG) ruled on June 3, 2014 (docket number 9 AZR 111/13) that the coalition government’s plan to adjust the German Temporary Employment Act (Arbeitnehmerüberlassungsgesetz, AÜG) does not authorise the courts to deviate from current statutory law. The court rather confirmed its recent jurisdiction according to which a permanent leasing …

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Discrimination, an ever-present issue

The Federal Labour Court (Bundesarbeitsgericht, BAG) ruled on 25 June 2014 (docket number 7 AZR 847/12) that as a result of the non-discrimination principle the employer may be obliged to offer an employee, who worked as a works council member during his fixed-term employment, an unlimited follow-up contract.   The plaintiff started to work on the basis …

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The Ins and Outs of German Vacation Time and Vacation Pay

As we approach summer many employers start to intensify their staff’s vacation planning.  Vacation regulations in Germany are not as straightforward as many employers might think. Today’s blog therefore aims to provide a basic overview on German vacation rules for employers. How much vacation pay and time are employees entitled to? Starting off with the …

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