FAQ
FAQ - Temporary work - Temporary employment - Temporary work
Temporary work - Temporary employment - What is it?
At first glance, these three terms sound like different things, but in fact they refer to the same thing. Behind all three is the fact that a company "borrows" labour from another company for a certain period of time. A company hires employees through a recruitment agency who work there for a limited period of time.
This arrangement is particularly useful for covering companies' short-term staffing needs without having to hire new employees directly. Temporary employment is particularly common in sectors with fluctuating workloads or seasonal requirements.
Is there a difference between hiring out employees and temporary work?
Temporary staffing and temporary employment differ in the scope of their meaning. Although the two terms are often used interchangeably, "temporary employment" generally refers to the legal framework of temporary work.
In particular, it includes the regulations and requirements set out in the German Temporary Employment Act (AÜG).
"Temporary work", on the other hand, is a broader term and describes the type or nature of the form of work.
In which sectors is employee leasing frequently used?
The sectors in which temporary employment is most strongly represented are transport and logistics, Production, Craft, industry sectors, healthcare and IT and retail, due to their dynamic personnel requirements. These sectors are often affected by seasonal fluctuations or short-term projects. Temporary staffing enables companies to quickly adapt their workforce to different requirements. This promotes operational efficiency, cost-effectiveness and risk minimisation - to ensure growth and competitiveness on the market.
When does a concealed supply of labour exist?
Cases of concealed temporary employment exist if:
- the temporary employment is carried out without first obtaining the necessary authorisation
- Alleged contractual work Work is carried out by employees who are employed by an employer or Personnel service provider deployed with a customer
- The temporary workers is integrated into a customer company like the regular employees
- The client assumes the right to issue instructions to the temporary worker and not his actual employer
What is the principle of equality?
According to the German Temporary Employment Act (AÜG), the so-called "principle of equality" applies. This means that the hiring company is obliged to ensure that the temporary worker is treated in the same way as the permanent staff in the hiring company.
This equality extends over the entire duration of employment. This includes, for example, the essential working conditions. There must be no differences between the temporary worker and the permanent staff. Wages must also be paid in the same amount and in the same way.
What advantages does temporary employment offer companies?
Employee leasing enables companies to adapt quickly to the market. This flexibility improves their operational agility and efficiency. By working with recruitment agencies, the administrative burden can be significantly reduced, as the administrative tasks associated with recruitment, onboarding and salary administration are taken over by the agency. Companies can thus provide themselves with qualified specialists without having to commit to long-term employment contracts.
What are the advantages and disadvantages of temporary employment for temporary workers?
Temporary employment offers temporary workers the opportunity to gain different experiences and access to work opportunities in various industries. However, it also comes with certain disadvantages. Lack of job security is a common concern for temporary workers. This is due to the temporary nature of their employment and often leads to financial instability and stress.
Access to benefits such as healthcare and pensions is also a common challenge for temporary workers. All of this affects their general well-being and financial security.
How is the quality of temporary employment and the satisfaction of temporary workers assessed?
The quality of temporary work and the satisfaction of temporary workers are often assessed on the basis of various criteria. Aspects such as the quality of accommodation, working conditions, feedback and remuneration are included in the assessment.
The feedback can be used to specifically identify areas for improvement.
What alternatives are there to hiring out employees when companies need temporary labour?
When companies need temporary staff, they have several alternatives for temporary employment. These include hiring freelancers or independent contractors, undertaking project work or entering into fixed-term contracts for direct employment. Alternatively, they can also work with external agencies or consultancies for specific projects. The specific needs of the organisation and the type of temporary staff required will determine which alternative is the best choice.
What role do temporary employment agencies play in the placement of labour?
Temporary employment agencies play a key role in the staffing process. They cover the temporary staffing needs of companies and provide qualified labour. They also take responsibility for recruitment, selection procedures and administrative tasks. They are also responsible for the entire immigration process for temporary workers. More about our temporary employment agency >>>
How does the cooperation between the hirer and the temporary employment agency work?
The cooperation between the hirer and the temporary employment agency takes place via the temporary employment contract. This is an agreement that defines the terms of the cooperation.
- The lender recruits and provides labour, while the hirer defines the requirements and needs for the positions.
- The hirer is responsible for the administrative aspects such as wages and social benefits. The hirer is responsible for the work instructions and daily supervision of the temporary workers.
Clear communication and regular dialogue are required to ensure smooth collaboration. So that the goals of both parties can be achieved.
How is digitalisation affecting temporary employment and temporary work?
Digitalisation is having a major impact on temporary employment and temporary work. Digital platforms facilitate the recruitment process and increase the visibility of temporary workers for potential employers - as well as making temporary employment agencies easier to find for skilled workers looking for work. They also give companies easier and faster access to suitable personnel service providers.
Digital tools also create the conditions for remote working. Digitalisation opens up new opportunities that go beyond geographical borders - a clear advantage for both companies and temporary workers. For companies, this means easier access to talent worldwide, while employees have the chance to work from anywhere.
What role does collective bargaining coverage play in the remuneration of temporary workers?
Collective agreements play an important role in determining the wages of temporary workers. Standardised wage rates and working conditions are defined in collective agreements. This means that temporary workers receive the same pay as permanent employees in the same sector. This ensures fair pay in the temporary employment sector and promotes social equality. Both contribute to the long-term success of companies.
How can temporary workers improve their career development and prospects?
Temporary workers can improve their professional development and prospects through various strategies. Above all, this includes continuous learning, for example by attending workshops and courses, the targeted development of their skills and the acquisition of relevant certificates. Finding a mentor can also open up valuable insights and new career opportunities.
Demonstrating additional qualities such as reliability, flexibility and a strong work ethic can lead to positive recommendations and thus open up potential promotion opportunities. Continuously monitoring industry trends and actively seeking feedback in order to develop your own performance in a targeted manner is also particularly important for career advancement.
What trends and developments can be observed in temporary staffing and temporary employment?
New trends in temporary staffing and temporary employment include the increased use of digital recruitment platforms and the integration of artificial intelligence and automation into the recruitment process.
With the help of AI and machine learning, the entire recruitment process can be handled efficiently. Automated systems are able to quickly analyse a large number of CVs and applications and filter out suitable candidates. In addition, technological advances require constant updating and retraining to meet the demands of new and evolving jobs.
Evidence Act: What obligations to provide evidence do employers have?
According to the German Employment Documentation Act, companies based in Germany must document the key terms of an employment contract in writing and hand it over to the employee. What information is mandatory - and in what form must the proof be provided?
The German Evidence Act stipulates that the employer must record the essential contractual terms of the employment relationship in writing, sign the record and hand it over to the employee.
What are the requirements for attracting foreign skilled workers to Germany?
Immigration of foreign skilled labour is a decisive step in combating the shortage of skilled workers in Germany. A key aspect of this is the requirements for immigration. This article will help you to find out about the necessary conditions and regulations that skilled workers from abroad must fulfil in order to be allowed to work in Germany.
The basic requirements include a recognised foreign university degree or professional qualification and, where applicable, proof of language skills. In addition, foreign skilled workers must often be able to provide evidence of special professional qualifications and relevant professional experience.
Statutory regulations on temporary employment
What legal regulations apply to temporary employment?
Temporary employment is regulated by the Temporary Employment Act (AÜG). Within this legal framework, there are various statutory provisions governing its regulation.
The aim is to protect temporary workers and ensure fair treatment. The legal regulations relate to wages, working hours, social benefits and occupational health and safety.
What is the Temporary Employment Act?
The Temporary Employment Act (AÜG) is a German law that regulates the hiring out of employees. It also defines the rights and obligations of temporary workers and of companies that employ workers through recruitment agencies.
The aim of the AÜG is to ensure the protection of temporary workers on the labour market. It is also intended to ensure fair working conditions and equal treatment.
What labour law provisions must be observed when hiring out employees?
In the case of temporary employment, labour law provisions apply that are equally binding for all temporary workers. These include regulations on employment contracts, wages, working hours, health, safety and protection against dismissal. Compliance with wage and working time legislation is mandatory for all temporary workers. The minimum wage and overtime pay also apply without restriction.
In addition, compliance with workplace safety regulations is of particular importance. This includes the provision of a safe working environment and appropriate training for temporary workers. Similarly, an employee may not be dismissed before the end of the period specified in the employment contract. The maximum period of employment in one and the same company is 18 months.
In addition, compliance with laws against discrimination and harassment in the workplace must be ensured. Strict compliance with these labour laws is crucial for all three parties involved.
What liability issues and risks arise for companies when hiring out employees?
Companies have a responsibility when hiring out employees and any breach of this responsibility represents a risk for the company.
Companies have legal obligations with regard to labour laws, discrimination regulations and regulations for the protection and safety of employees in the workplace. There is a risk of possible accidents or injuries. Financial losses can also arise, for example due to breaches of contract or the incorrect categorisation of employees.
It is therefore particularly important to carefully assess potential risks and take appropriate measures. These include taking out appropriate insurance policies, complying with legal requirements and regularly reviewing the terms and conditions of contracts. Read more >>>
What rights do temporary workers have compared to permanent employees?
Temporary workers have the right to equal pay compared to permanent employees. This means they receive fair compensation for their work. They also have the same right to safety in the workplace as permanent employees. However, they may be denied certain benefits and health and safety measures that are granted to permanent employees. Careful consideration of employment conditions for temporary workers is therefore required to ensure fair treatment and compliance with labour laws.
How are the assignment duration and working conditions of temporary workers determined?
The duration of the assignments and the working conditions of the temporary workers are regulated in contracts between the recruitment agency and the employer. In accordance with the applicable legal requirements, the assignment duration, conditions, obligations and benefits of the temporary workers are defined in these contracts.
How is payroll accounting and categorisation of temporary workers carried out?
The temporary employment agency is responsible for processing payroll and categorising employees. The salary is determined by the temporary employment agency on the basis of qualifications, professional experience and the conditions agreed with the client company.
The temporary employment agency is also responsible for the entire administration of payroll accounting. This includes deductions, supplements and taxes. The agency ensures that all legal requirements are met in order to guarantee correct, punctual and lawful payment.
What hygiene standards and safety regulations apply to temporary workers?
Industry-specific hygiene standards and safety regulations apply to temporary workers. These depend on the specific working environment. However, general guidelines include personal protective equipment (PPE), regular training on safety procedures and accident prevention measures.
Before using temporary workers, the lender and hirer must also clarify who is responsible for providing the PPE. As a rule, the hirer provides the basic safety equipment. The hirer is responsible for specific workplace hazards and first aid. It is crucial that temporary workers familiarise themselves with the regulations of their respective place of work and strictly adhere to them - in order to protect their health and minimise risks.
What is Equal Pay? What legal rights does it give temporary workers?
Section 8 (1) of the German Temporary Employment Act (AÜG) enshrines the so-called principle of equal treatment:
"The lender is obliged to grant the temporary worker the essential working conditions, including pay, applicable to a comparable employee of the hirer in the hirer's company for the duration of the assignment to the hirer."
In other words, temporary workers are entitled to equal treatment with comparable permanent employees of the company in which they are deployed with regard to the main working conditions. A central component of this is the right to equal pay.
What is the Skilled Labour Immigration Act?
The Skilled Labour Immigration Act regulates the immigration of qualified workers to Germany. It is intended to facilitate access to the German labour market for skilled workers from non-EU countries. The law aims to counteract the shortage of skilled labour in certain sectors. It defines the conditions under which foreign skilled labour is permitted to work in Germany.
International employee leasing
What is international labour leasing?
International temporary employment or labour leasing from abroad refers to the temporary posting of employees from one country to work in another country. This practice is a response to labour shortages or the need for certain qualifications in the destination country. Read more >>>
What are the advantages of hiring out employees from abroad?
Employee leasing from abroad gives companies greater flexibility on the market. This means that they can react quickly to changes in staffing requirements. Temporary work can be used to bridge short-term bottlenecks without entering into long-term commitments.
This is particularly advantageous in the event of seasonal fluctuations or specific project requirements. In addition, employee leasing facilitates access to qualified specialists who are difficult to find in certain industries or regions.
What are the risks associated with international labour leasing?
International temporary work can involve risk factors such as breaches of legal regulations, cultural differences and language barriers. Violations of applicable laws and regulations can lead to legal disputes - with possible financial and reputational consequences.
Cultural differences and language barriers are also considered risk factors, as they can have a negative impact on the effectiveness of collaboration. This can lead to misunderstandings and lower productivity. To minimise these risks, a thorough legal review, precise contractual regulations and clear communication are required.
When does an illegal supply of labour exist?
Illegal temporary employment exists when a company employs workers without the required legal authorisation. Or if it violates the applicable labour laws and regulations. This can take various forms. These include the exploitation of workers without adequate protection or remuneration. Or the evasion of taxes and social security contributions.
Illegal labour leasing can have serious legal consequences for all parties involved, including fines and criminal prosecution.
Are there certain industries or sectors in which international labour leasing occurs more frequently?
Industries with a high demand for short-term or seasonal labour make particularly frequent use of international employee leasing. These include the Construction, which Production, which industry sectorswhich IT industrycrafts and the catering trade.
Even in sectors with complex supply chains and global business models such as the Automotive industry or the Electronics industry international temporary work is widespread. These industries are often dependent on flexible labour to cover peak times or to provide certain qualifications at short notice.
What about taxes and social security contributions for temporary workers in Germany?
Taxes and social security contributions for temporary workers in Germany are levied in accordance with the applicable tax and social security regulations. As a rule, contributions for income tax and pension, health and unemployment insurance are deducted directly from wages.
The exact amount of deductions depends on the temporary worker's income and other individual factors. It is important that temporary workers and their employers are aware of their tax obligations and fulfil them properly in order to avoid legal consequences.
Who controls the supply of temporary workers?
Temporary work in Germany is monitored by the Federal Employment Agency. It enforces the Temporary Employment Act and monitors compliance with its provisions. The customs administration is responsible for prosecuting and penalising illegal temporary work.
The Federal Employment Agency works closely with the customs administration. Both authorities carry out joint investigations and inform each other about suspected cases. The aim is to ensure the integrity of the labour market and the protection of employees.
Which workers from abroad work in Germany?
Foreign labour in Germany - whether highly qualified specialists or unskilled seasonal workers - makes an important contribution to the German economy.
Foreign employees play an important role in various sectors in Germany. In the Constructionin manufacturing, agriculture, the skilled trades, information technology, healthcare and other sectors. They contribute to the diversity and competitiveness of the German labour market. They come from The Czech RepublicSlovakia, Hungary, Slovenia, Romania, Poland and other EU countries and Eastern Europe.
How is the cooperation between companies and personnel service providers organised in the context of international employee leasing?
The cooperation between companies and personnel service providers in international employee leasing comprises the selection, provision and management of labour by the service provider on behalf of the company.
All initial and operational details are regulated in temporary employment contracts. These contain all regulations on the rights and obligations of the parties involved.
What trends and developments can be observed in the field of international labour leasing?
Several trends can currently be observed in the field of international labour leasing. One of these is the rise of remote work. Remote working arrangements are becoming increasingly important, driven by technological advances and changing labour preferences.
The growth of the gig economy is also changing traditional employment models. It offers both employees and employers more flexibility in recruiting talent worldwide. In addition, there is an increased focus on compliance and ethical hiring practices, a reflection of increasing corporate responsibility in international labour markets.
What role does digitalisation play in international employee leasing?
Digitalisation plays a key role in international employee leasing. It facilitates remote collaboration. This rationalises recruitment processes and improves communication across borders.
Modern digital platforms enable organisations to efficiently manage international talent pools, track performance metrics and ensure regulatory compliance.
In addition, digital tools such as artificial intelligence and data analysis optimise HR planning and decision-making. At the same time, they increase operational efficiency and support strategic decisions in international HR management.
How can companies ensure the quality of temporary workers from abroad?
The companies ensure the quality of international employee leasing through several measures.
- Firstly, by thoroughly analysing the selection of service providers. By checking compliance with labour laws and assessing their experience in managing cross-border assignments.
- Then through clear contracts in which rights, obligations and performance expectations are defined. And through strict compliance with these agreements.
- In addition, regular performance appraisals and continuous improvement initiatives improve the quality of service. And that is an incentive for long-term partnerships in international employee leasing.
What financial aspects need to be taken into account in international employee leasing?
The financial aspects that need to be considered when hiring workers internationally include recruitment costs, visas, relocation costs, accommodation and transport. There are also the costs of complying with regulations in both the sending and receiving countries.
In addition, exchange rates and fluctuations in labour costs should be taken into account. Possible costs associated with cultural training and language tuition for posted workers should also be considered.
It is particularly important to plan a budget for unforeseen events and develop strategies to minimise risk. In this way, potential financial uncertainties can be effectively cushioned.
What challenges does international employee leasing pose for companies?
Companies face various challenges when it comes to international employee leasing. These include coping with complex rules and regulations. They also have to deal with cultural differences and overcome language barriers in different countries.
It can be a challenge to meet the requirements of labour law, immigration regulations and tax obligations in different countries. This can lead to increased administrative burdens and legal risks. In addition, multiculturalism in the workplace can lead to cultural misunderstandings and different ways of working, which can affect teamwork and productivity.
The integration of different cultures and the overcoming of communication and cultural barriers therefore require strategic approaches in HR management. Investment in cross-cultural training and support programmes is also required.
Law & Labour Law - International Temporary Employment
What legal regulations apply to temporary employment from abroad?
Labour law, visa regulations, tax laws and social security regulations are particularly important for temporary employment from abroad. These laws regulate aspects such as working conditions, entry and work permits, tax obligations and social security obligations for foreign employees.
Companies must ensure that they comply with all relevant laws in both the country of origin and the destination country in order to avoid legal consequences and ensure that the temporary employment process runs smoothly.
What are the legal requirements for working as a temporary worker in Germany?
In Germany, temporary workers must fulfil certain legal conditions in order to be able to work. The conditions for temporary workers include a valid work permit and compliance with legal regulations on working hours, minimum wages and occupational health and safety.
Temporary employment agencies must have a licence to operate as a temporary employment agency. These conditions serve to protect employees and ensure a fair and equitable working environment.
What is the revolving door clause?
A revolving door clause is a provision in collective labour agreements or laws. It states that the employee may not be employed directly by the temporary employment agency's customer for a certain period of time after termination of the employment relationship.
This means that at least six months must have passed before the employee can be re-employed by the same company via the temporary employment agency.
What rights and protection do temporary workers have under international labour law?
Under international labour law, temporary workers have certain rights and protections. These are defined by international labour organisations and relevant conventions. These include the right to a fair wage, appropriate working conditions and safety in the workplace.
In addition, temporary workers in many countries have the right to freedom of association and access to social benefits. It is important that employers comply with international labour standards and respect the rights of temporary workers to ensure fair and just working conditions.
What special features apply to temporary employment within the EU?
Special regulations apply to temporary employment within the EU in accordance with the EU Posting of Workers Directive.
This directive sets out minimum standards for working conditions and remuneration. Companies must ensure that they comply with these regulations in order to avoid legal consequences.
The aim of the Posting of Workers Directive is to ensure fair competitive conditions and appropriate protection for posted workers.
What documents and authorisations are required for hiring out employees from abroad?
Various documents are required for temporary employment from abroad. These include
- Proof of right of residence
- Work permit or visa
- employment contract
- Address clarification
- Social security certificate
The specific requirements vary depending on the country of origin and destination, the type of activity and the planned duration of the assignment. It is imperative to provide all documentation to avoid potential legal complications and ensure a smooth leasing process for employees.
Employee leasing Eastern Europe
What is temporary employment in Eastern Europe?
Temporary employment in Eastern Europe refers to the practice whereby Eastern European workers are hired out by a hirer (usually a temporary employment agency) to a user company, often in another European country, for a limited period of time.
Why do companies in Western Europe utilise workers from Eastern Europe?
Companies in Western Europe utilise Employees from Eastern Europe often due to lower labour costs, the availability of qualified workers or to cover seasonal fluctuations and temporary peaks in demand.
Which law applies to temporary employment?
In the case of international temporary employment, the labour law of the country of hiring always applies. This includes working hours, holiday entitlement, continued payment of wages and other working conditions.
What is the A1 certificate?
The A1 certificate is proof that an employee is covered by social security in an EU member state. It is required when an employee is temporarily posted abroad to show that they remain covered by social security in their home country.
Are Eastern European temporary workers insured against accidents at work in Western Europe?
Yes, according to EU regulations, temporary workers must be protected in the event of accidents at work in accordance with the law of the country of hiring.
How are wage differences regulated for temporary workers?
The EU Posting of Workers Directive obliges hirer companies to pay posted workers at least the statutory minimum wage in the country of posting.
What is the EU Posting of Workers Directive?
The EU Posting of Workers Directive sets out the legal framework for the posting of workers within the EU, including their working conditions and wage standards.
What obligations does the hirer have when hiring out?
The lender is obliged to ensure that the posted workers are paid and employed in accordance with the conditions applicable in the country of hiring. They must also handle the necessary administrative processes such as the A1 certificate.
How long may the secondment of workers from Eastern Europe last?
This can vary depending on the posting directive of the country of posting, but in general, posted workers can be transferred for up to 12 months, with the possibility of an extension for a further 6 months.
What happens if the rules on temporary employment are violated?
Both the hirer and the lender may be subject to sanctions such as fines if the regulations on temporary employment are violated. In addition, claims for damages or back wages incurred by temporary workers can be asserted against the hirer. More info >>>