Labour leasing

Employee Leasing: Deviation from Equal Pay

According to a judgement of the Federal Labour Court employers (agency) who lease employees (agency workers) to a third party (client) can deviate from the principle of equal treatment (“Equal Pay”) by virtue of a reference clause in the contract of employment only if, for the period of the lease, the relevant collective bargaining agreement for employee leasing fully, and not just partially, applies (judgement dated 16 October 2019, docket number 4 AZR 66/18). The plaintiff was employed by the defendant and leased out to a client as a driver for the period from April 2014 to April 2015. The …

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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 decisive for legal standards, it must be clarified whether only “normal” employees or also temporary workers are covered. Often, the law links legal consequences to a minimum number of employees in a company: For example, in companies with more than ten employees, special protection against …

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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 are summarized as follows: The deployment of temporary workers to the same hirer is limited to a maximum duration of 18 consecutive months. The calculation of the period is linked to the individual temporary worker and not to the respective position. Periods of interruption of …

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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 of equal value” and that no more loopholes will be permitted. The new draft apparently contains provisions relating to companies which are not party to a collective agreement, and includes the following details: Assignment of temporary workers: In principle, temporary work shall be limited to …

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