A comparison of contracts for work and labour and temporary employment

What is a contract for work? What are its advantages and disadvantages?

A contract for work is a contract in which the contractor undertakes to provide a specific work or service. The central element of the contract for work and labour is the result of the work, not the work process itself. The contractor is liable for the completion of the work and often has greater freedom with regard to the execution of the work. Typical examples of contracts for work and labour are construction contracts, IT project contracts or the manufacture of machinery.

The Legally compliant contract for work is regulated in the German Civil Code (BGB), in particular in the §§ 631 ff. BGB. The contract contains specific provisions on liability for defects and warranty. The contractor owes the client a specific result, and in the event of non-fulfilment or defective execution, the client has certain rights, such as rectification or compensation.

The advantages are that the company only pays for the finished work. This minimises the financial risk. Contractors can often react more flexibly to changes in the project. Companies do not have to worry about the contractor's working hours, holidays or social security.

The disadvantages are that companies have less influence on the work process and the methods used. In the event of defects, rectification can be time-consuming and expensive. Complex contracts can cause misunderstandings and legal disputes.

What is employee leasing? What are its advantages and disadvantages?

In the case of employee leasing (also known as temporary work), a hirer (temporary employment agency) provides a hirer (client company) with employees. These employees are employed by the hirer, but work for the client company for a certain period of time. The hirer remains the employer and is responsible for the payment of wages and compliance with labour law provisions.

Temporary employment is regulated by the Temporary Employment Act (AÜG). This law contains regulations on the equal treatment of temporary workers, the obligation for hirers to obtain a licence and the duration of the temporary employment. Temporary workers are generally entitled to the same working conditions as comparable permanent employees of the hirer.

The advantage here is that companies can react to staff shortages at short notice. Temporary employment agencies bear the employer risk, e.g. in the event of illness or holiday of temporary workers. The costs are often predictable and can be lower compared to permanent employment.

The disadvantages are that temporary workers are often less well integrated into the company, which can affect teamwork. Temporary workers can be less motivated than permanent employees. There are statutory maximum assignment periods and regulations on equal treatment that must be observed.

Personnel service provider "Zeitarbeit International"

We at Zeitarbeit International are a company of the Employee leasing for over 25 years. Our focus is on Staff from Eastern Europe,   Temporary work, Posting of employees and Recruitment from Eastern Europe

Our employees are very familiar with working on the German market and speak very good German. They have already carried out a wide range of work for us and are reliable and punctual.

As a company, we make sure that all documents and permits for the German labour market are up to date. If you request personnel from us, you can usually expect an assignment at your location within a week.

labour force selection