Workforce planning in Germany: new rules for temporary agency work

January 4, 2017

On 1 April 2017, a new law governing temporary agency work came into effect in Germany (the “Act”).  Businesses operating in Germany, whether suppliers or end users of agency workers, must take note of the new rules under the Act in their workforce planning, as they create significant new risks and restrictions in the use of agency workers.

What are the new rules?

Hire periods for temporary agency workers are now restricted to 18 months:

Equal pay and working conditions for temporary workers:

End to precautionary permit protections for supply of temporary workers:

Striking employees of the hiring company may not be replaced by temporary workers

Consideration of temporary workers for employee participation thresholds:

What does this mean for employers and agencies?

The Act brings new risks for both the supplier and the hirer of temporary workers:

It is therefore essential that businesses take account of these new rules in workforce planning, and dealing with existing arrangements, as they place significant new risks on the use of agency staff.

For further information or to discuss any of the issues raised, please contact Stefanie Andrelang on +49 (0) 89 2422300, Keller Menz.

Resources

German Act on Temporary Agency Work (Arbeitnehmerüberlassungsgesetz (AÜG)).

 

 

Disclaimer

Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this article. For further legal information click here.

To ensure compliance with requirements imposed by the IRS and other taxing authorities, we inform you that any tax advice contained in this article (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

Category:

CELIA Alliance
CELIA Alliance members are identified here. Members of the CELIA Alliance are each independent law firms and do not practice law jointly with any other member of the CELIA Alliance. “CELIA Alliance” and “CELIA” are not trading names. For more information about the CELIA Alliance click here.

Disclaimer
Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this newsletter. For further legal information click here.

Copying
If you would like to copy or otherwise reproduce this article then you may do so provided that: (1) any such copy or reproduction is for your own personal use or if it is made available to any third party it is done so on a free of charge basis; and (2) the article is reproduced in full together with the contact details, disclaimer and any logos as they appear on each article.

Leave a Reply

Your email address will not be published. Required fields are marked *