Assignment of temporary employees without a license

The German Law on Temporary Employment (AÜG, Arbeitnehmerüberlassungsgesetz) provides for fines to be imposed in a host of cases.

These are laid down in sec. 16 AÜG.

One case, for instance, is the assignment of employees without a license. This is called illegal temporary employment without a license.

A person who assigns a temporary employee or allows a temporary employee to work at customers on a payrolling or staffing basis needs a license to operate a temporary employment agency. A person who carries out these activities without a license commits illegal assignment of temporary employees.

This can be punished by fines of up to €30,000.

The law does not permit a temporary employment agency to be operated and the license to be applied for retroactively. This also constitutes illegal operation of a temporary employment agency and is punished by fines of up to €30,000 and revocation of the license granted.