FAQ

FAQ - Temporary work - Temporary employment - Temporary work

Temporary employment, agency work, temporary work, what is it? At first glance, these three terms sound like different things, but they are essentially the same thing. Behind all three words is the fact that a company hires itself out for a while. Borrows labour from another company A company hires employees from a recruitment agency to work for the company for a limited period of time. 

This arrangement is particularly useful for covering companies' short-term staffing needs without directly hiring new employees. Temporary employment is common in industries with fluctuating workloads or seasonal requirements. 

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Temporary staffing and temporary employment differ in the scope of the term. They are often used interchangeably. Temporary employment generally refers to the legal framework of temporary work. And it also includes the regulations and requirements set out in the Temporary Employment Act. And temporary work is a broader term and describes the type, i.e. the nature of the work.

The sectors in which temporary employment is most strongly represented are transport and logistics, Production, Craft, Industry,  Healthcare, 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 ensures operational efficiency, cost effectiveness and risk minimisation. To maintain growth and competitiveness in the market.

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 employer assumes the right to issue instructions to the temporary worker and not the actual employer

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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 across the entire employment relationship. This includes, for example, the essential working conditions. There must be no difference between the temporary worker and the permanent staff. Wages must also be paid at the same level and in the same way.

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Temporary employment enables companies to adapt quickly to the market. This flexibility improves the operational agility and efficiency of companies. By working with recruitment agencies, companies can reduce their administrative costs. This is because the administrative tasks associated with recruitment, onboarding and salary administration are taken over by the agency. Companies can provide themselves with qualified specialists without being tied to long-term employment contracts.

Temporary employment offers temporary workers the opportunity to gain different types of experience. Also to gain access to job opportunities in different sectors. 

But temporary employment also has certain disadvantages. Lack of job security is a common concern for temporary workers. This is due to the temporary nature of their employment and leads to financial instability and stress. Access to benefits such as healthcare and pension schemes is also a common challenge for agency workers. All of this affects their general well-being and financial security.

The quality of temporary work and the satisfaction of temporary workers are often assessed on the basis of various criteria. The assessment takes into account the effectiveness of accommodation, working conditions, feedback and remuneration. Feedback is used to identify areas for improvement.

When companies need temporary staff, they have several alternatives for temporary employment. These include hiring freelancers or independent contractors. Then project work or fixed-term contracts for direct employment. Or they can work with external agencies or consultancies for specific projects. The specific needs of the company and the type of temporary staff required determine which alternative is the best choice.

Temporary employment agencies play a key role in the staffing process. They cover the company's temporary staffing needs. Temporary employment agencies provide qualified labour. They also take responsibility for recruitment, selection procedures and administrative tasks. And they are responsible for the entire immigration process for temporary workers.  More about our temporary employment agency >>>

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.

Digitalisation is having a major impact on temporary employment and temporary work. Digital platforms facilitate the recruitment process. Digital platforms increase the level of awareness of temporary workers with job offers. The level of awareness of temporary employment agencies for jobseekers also increases. Digital platforms give companies easier and faster access to temporary employment agencies.

Digital tools enable remote working. Digitalisation offers opportunities that go beyond geographical borders. And this is a great advantage for both companies and temporary workers. For companies, it means easier access to talent across geographical borders. And for employees, it means the opportunity to work anywhere and from anywhere.

Collective agreements play an important role in determining the wages of temporary workers. Collective agreements set a standardised wage rate and standardised working conditions. This means that temporary workers receive the same wage as permanent employees in the same sector. This ensures fair pay in the temporary employment sector. And social equality is promoted. This contributes to the long-term success of the company.

Temporary workers can improve their professional development and prospects through various strategies. Firstly, through continuous learning, participation in workshops and courses. By developing their skills and gaining relevant certification. Finding a mentor can also provide valuable insight and potential career opportunities.

Demonstrating additional qualities such as reliability, flexibility and a strong work ethic can lead to positive recommendations. This results in potential promotion opportunities. Of particular importance to the advancement of temporary employees is the constant updating of trends in the respective industry. As is actively seeking feedback in order to constantly improve.

One of the new trends in temporary staffing and temporary employment is the increased use of digital recruitment platforms. And the integration of artificial intelligence and automation into the recruitment process.

The entire recruitment process is handled with the help of artificial intelligence and machine learning. Automated processes can quickly sift through an avalanche of CVs and applications and sort out the right applicants. In addition, technological progress requires constant updating and retraining. In order to meet the requirements of new and developing jobs.

According to the German Employment Documentation Act, companies based in Germany must document the essential 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 Proof of Employment Act stipulates that the employer must essential contractual terms of the employment relationship in writing, the transcript sign and the Hand over employees must.

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Immigration of foreign skilled labour is a decisive step in combating the Skilled labour shortage in Germany. An important point here is the requirements for the Immigration. This article will help you to find out about the necessary requirements and regulations that Skilled workers from abroad must fulfil in order to be allowed to work in Germany.

The basic requirements include, among other things more recognised a foreign university or professional qualification and, where applicable, proof of language skills. In addition, foreign skilled workers often have to fulfil special Professional qualifications and Professional experience can prove.

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Statutory regulations on 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.

The Temporary Employment Act (AÜG) is a German law that regulates the leasing of employees. It also outlines the rights and obligations of temporary workers. In addition, it regulates the rights and obligations of companies that hire employees 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.

In the case of temporary employment, there are labour law provisions that apply equally to all temporary workers. These include provisions on employment contracts, wages, working hours, health, safety and protection against dismissal. Compliance with wage and working time legislation is mandatory for every temporary worker. Minimum wage and overtime pay apply to every temporary worker.

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. Likewise, the employee may not be dismissed before the end of the period stipulated 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 law regulations is crucial for all three parties involved.

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 and discrimination regulations. Just like the regulations for the protection and safety of employees in the workplace. There is a risk of possible accidents or injuries in the workplace. There are also financial risks in connection with breaches of contract or incorrect categorisation of employees.

It is particularly important to assess the risks and take appropriate measures. This includes taking out insurance, complying with legal regulations and regularly reviewing the terms of the contract. Read more >>>

Temporary workers have the right to equal pay compared to permanent employees. This means they receive fair compensation for their work. Temporary workers have the same right to job security as permanent employees. However, they may lack certain benefits and health and safety measures that are afforded to permanent employees. Careful consideration of the terms and conditions of employment for agency workers is therefore required. To ensure fair treatment and compliance with labour laws.

The duration of the tasks and the working conditions of the temporary workers are regulated in contracts between the recruitment agency and the employer. These contracts specify the duration, all conditions, obligations and benefits of the temporary worker in accordance with the relevant laws.

The temporary employment agency is responsible for processing the payroll and categorising the employees. The temporary employment agency sets the salary on the basis of qualifications, experience and the conditions agreed with the client company.

All payroll administration is carried out by the temporary employment agency. This includes deductions, supplements and taxes. The temporary employment agency ensures compliance with legal requirements to guarantee correct, timely and lawful payment.

Industry-specific hygiene standards and safety regulations apply to temporary workers. These regulations depend on the respective working environment. However, the 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 employee with personal protective equipment (PPE). As a rule, the hirer is responsible for the basic safety equipment. The hirer is responsible for specific hazards in the workplace and first aid. It is crucial that temporary workers familiarise themselves with the specific regulations of their place of work and strictly adhere to them in order to ensure their health and safety and minimise potential risks.

Section 8 (1) of the German Temporary Employment Act (AÜG) enshrines the so-called principle of equal treatment: "The hirer 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. Part of this is the right to equal pay.

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The Skilled Labour Immigration Act regulates the immigration of qualified workers to Germany. It is intended to make it easier for skilled workers from non-EU countries to work in Germany. The law is intended to counteract the shortage of skilled labour in certain sectors. It regulates the conditions under which foreign skilled labour is permitted to work in Germany.

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labour force selection
labour leasing from abroad

International employee leasing

International temporary employment or labour leasing from abroad is the temporary assignment of employees from one country to work in another country. This practice is a response to a labour shortage or the need for certain skills in another country. Read more >>>

Temporary employment from abroad gives companies greater flexibility on the market. This means that they can react quickly to changing labour requirements. With the help of temporary staffing, companies can react flexibly to short-term labour requirements without having to make long-term commitments.

This is particularly useful for seasonal fluctuations and specific project requirements. In addition, employee leasing facilitates access to qualified labour that is in short supply in certain industries or regions.

In international temporary work, risk factors can include breaches of legal responsibility, cultural differences and language barriers. Violations of applicable laws and regulations can lead to legal disputes. And this can have financial and reputational consequences.  Cultural differences and language barriers are a risk factor as they have an impact on the effectiveness of temporary work. This can lead to misunderstandings and reduced effectiveness.

To minimise these risks, a thorough legal review, a precise agreement and clear communication are required.

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.

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Industries that have a high demand for short-term or seasonal labour make more frequent use of the practice of international employee leasing. These include sectors such as the Constructionwhich Productionwhich Industry, IT industrycrafts and the catering trade.

International temporary work is also common in industries with complex supply chains and global business models. These include, for example automotive industry and the Electronics industry. These industries are often dependent on flexible labour to cover peak periods or to make certain skills available at short notice.

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, pension, health and unemployment insurance are deducted 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.

Temporary work in Germany is controlled by the Federal Employment Agency. It enforces the Temporary Employment Act. The Federal Labour Agency monitors compliance with the law. The customs administration is responsible for prosecuting and penalising illegal temporary work.

The Federal Employment Agency works closely with the customs administration. They carry out joint investigations and inform each other of any suspected cases. The aim is to ensure the integrity of the labour market and the protection of employees.

Foreign labour in Germany, whether highly qualified specialists or unskilled seasonal workers, makes a major 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, etc. They contribute to the diversity and competitiveness of the German labour market. They come from CzechSlovakia, Hungary, Slovenia, Romania, Poland and other EU countries and Eastern Europe.

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The cooperation between companies and personnel service providers in international employee leasing comprises the selection, provision and management of employees by the service provider on behalf of the company. 

All initial and operational details are regulated in temporary employment contracts. They contain all questions regarding the rights and obligations of the parties involved.

Several trends can currently be observed in the field of international labour leasing. One of these is the increase in remote workplaces.  Remote working arrangements are on the rise, fuelled by advances in technology and changing workforce preferences. 

In addition, the growth of the gig economy is changing traditional employment models. It offers both employees and employers flexibility in hiring talent around the world. In addition, the focus on compliance and ethical recruitment practices has increased. This reflects the corporate responsibility initiatives in the international labour markets.

Digitalisation plays a key role in international employee leasing. It facilitates remote collaboration. This rationalises recruitment processes. It also improves communication across borders.

Modern digital platforms enable companies to manage international talent pools efficiently. They enable companies to track key performance indicators and ensure compliance with legal regulations.

In addition, digital tools such as artificial intelligence and data analysis optimise personnel planning and decision-making. At the same time, they improve operational efficiency. And they support strategic decisions in international HR management.

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.

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 taken into account.

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 eliminated.

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 administrative burdens and legal risks. In addition, multiculturalism in the workplace can lead to cultural misunderstandings and differences in working methods. And this affects teamwork and productivity.

The integration of different cultures and the overcoming of communication and cultural barriers therefore require strategic approaches to HR management. Investment in cross-cultural training and support programmes is also required.

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Law & Labour Law - International Temporary Employment

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.

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In Germany, temporary workers must fulfil certain legal conditions in order to be able to work. The conditions for temporary workers include 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.

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A revolving door clause is a provision in collective labour agreements or laws. The revolving door clause 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.

Under international labour law, temporary workers have certain rights and protections. These rights and protections are defined by international labour organisations and relevant conventions. These include the right to a fair wage, decent 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.

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 a level playing field and adequate protection for posted workers.

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 necessary documentation to avoid potential legal complications and ensure a smooth leasing process for employees.

Employee leasing 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.

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.

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.

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. 

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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.

The EU Posting of Workers Directive obliges hirer companies to pay posted workers at least the statutory minimum wage in the country of posting.

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.

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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.

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.

Both the temporary employment agency and the hirer may be subject to sanctions such as fines if the regulations on temporary employment are violated. In addition, claims for damages or additional wages incurred by the temporary workers can be asserted against the hirer. More info >>>