Staff Leasing Germany, Labour Leasing - HK2 German Business Attorneys advise

Welcome to Staff-Leasing-Germany, an information offering by the HK2 Rechtsanwälte law firm in Berlin!

Here we offer international organizations information about temporary employment (staff leasing, labor leasing) and personnel assignments in Germany. We provide an overview of the legal framework and the related challenges that may arise when deploying personnel in Germany.

What does temporary employment (Arbeitnehmerüberlassung – ANÜ) in Germany imply?

Temporary employment, or staff leasing, implies that an employer contracts out his employee to a third party (hirer). Once contracted out, the employee will receive his wages from the employer, yet is subjected to the instructions issued by the party hiring the employee. This type of employment is governed by special rules and regulations in Germany and is only permitted to agencies that have been issued the respective license.

How do I obtain a license to operate a temporary employment agency?

A license to operate a temporary employment agency is mandatory in Germany in order to perform staff leasing services. The license must be applied for from the Federal Employment Agency and in principle is initially valid for one year. In addition to a processing fee of EUR 1,300.00, many documents must be submitted, such as the completed application form, certificates from the employer’s liability insurance company and proof of liquid funds to name a few. We are happy to assist you with your application and to help you prepare the correct paperwork.

Refusal or revocation of license

Not all applications for a license to operate a temporary employment agency are approved. The Federal Employment Agency may refuse to issue a license if circumstances justify the assumption that the applicant is unreliable, fails to meet its obligations or fails to comply with working conditions for its temporary employees. Furthermore, it is possible that a license that has been issued is revoked. We are happy to provide information about the cases for which this may apply, and what your options are in response to this.

Verification procedure of the Federal Employment Agency (Bundesagentur für Arbeit)

Our lawyers know what the verification procedure by the Federal Employment Agency focuses on to issue a license. The most important items refer to the compliance with working conditions for temporary employees, such as payment of the minimum wage, equal pay, accurate payment of social security contributions or compliance with the maximum time limit for the assignment of temporary employees. Together, we conduct a comprehensive verification procedure with you which constitutes the basis for successful staff leasing.

Staff leasing – contract to produce a work (Werkvertrag) vs. service contract (Dienstvertrag): distinction and relevance

Staff leasing is defined as an employee being sent by his employer to a third party where said employee must follow the instructions issued by that very third party. However, where a contract to produce a work has been signed between a work contractor and a party commissioning the work, there is no respective right to issue instructions. The work contractor owes the party commissioning the work a certain 'success', such as the (successful) repair of a car. In contrast, where a service contract has been signed, the service provider merely owes the proper performance of the service – but not its success. For example, the party performing a service under a contract for medical treatment commits to providing proper treatment, but does not guarantee the patient's recovery.

´Who requires a license for temporary employment services?

All national or international employers hiring out their employees to another organization require a license to operate a temporary employment agency. Even if the company categorizes the work of its employees as payrolling or project work, temporary employment applies where the employee is paid by his employer yet works at a third-party location. A license is mandatory for this.

Our service

When it comes to temporary employment in particular, legal requirements should be strictly adhered to. Staff leased out without holding the required license may be subject to a fine of up to EUR 500,000.00. Our lawyers are specialized in temporary employment, have many years of experience in this field and represent your interests vis-à-vis the Federal Employment Agency.