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You can’t have everything – no changes regarding intra-group agency work

The Government specifies the planned amendments of the Regulating Commercial Agency Work Act (Arbeitnehmerüberlassungsgesetz). According to the Government’s response to a parliamentary question (kleine Anfrage) put by the Group of the Greens (Die Grünen) the government does not plan any special regulations for the agency work within affiliated group companies (konzerninterne Arbeitnehmerüberlassung).

In the Government’s view there is no need to introduce new regulations, the remaining (planned) regulations will be sufficient to guarantee the law’s purpose. Even though the coalition agreement does not provide any changes regarding the internal group agency work, the certainty of the Government’s statement surprises. Particular with regard to the law’s purpose to avoid permanent agency work, intra-group agency work is still disputed. Within affiliated group companies it is still very common to lease employees due to an agency, which leases employees only within the group. Therefore the employees usually work for a long period for only one company without becoming permanent staff.

To read more about the planned changes of the Regulating Commercial Agency Work Act, please click here.