Fine proceedings on temporary employment
In recent years, fine proceedings have become increasingly important. Since denial of the license is often not proportionate, the Federal Employment Agency (Bundesagentur für Arbeit) has started to impose fines for violation of the German Law on Temporary Employment (AÜG, Arbeitnehmerüberlassungsgesetz).
The fines are sometimes quite high. The fine for failure to correctly apply the collective agreements can be as high as €500,000 (see sec. 16 (1) no. 7a in conjunction with sec. 10 (4), sec. 16 (2) AÜG).
The list below shows several offences subject to fine (pursuant to sec. 16 (1) AÜG). This applies to every person who, intentionally or through negligence,
Sec. 16 (1) no. | Offence | Fine in EUR |
1 | assigns a temporary employee to a third party without a licence in violation of sec. 1 | 30,000 |
1a | allows a temporary employee received from a temporary employment agency without a license to work for them | 30,000 |
1b | assigns a temporary employee or allows a temporary employee to work in violation of sec. 1 (1) sentence 3 | 30,000 |
1c | fails to identify an assignment of a temporary employee at all, correctly or in time in violation of sec. 1 (1) sentence 5 | 30,000 |
1d | fails to concretise the person at all, correctly or in time in violation of sec. 1 (1) sentence 6 | 30,000 |
1e | assigns a temporary employee in violation of sec. 1 (1b) sentence 1 | 30,000 |
1f | assigns a temporary employee or allows a temporary employee to work in violation of sec. 1b sentence 1 | 30,000 |
2 | allows a foreign temporary employee assigned to him to work if such employee does not have the required residence title pursuant to sec. 4 (3) of the Act on the Residence, Economic Activity and Integration of Foreigners in the Federal Territory (AufenthG, Gesetz über den Aufenthalt, die Erwerbstätigkeit und die Integration von Ausländern im Bundesgebiet), permission to remain or temporary suspension of deportation (Duldung) or a permit pursuant to sec. 284 (3) of the Third Book of the Code of Social Law (SGB III, Sozialgesetzbuch (SGB) Drittes Buch (III)) | 500,000 |
2a | fails to submit notification pursuant to sec. 1a at all, correctly or in time | 2500 |
3 | fails to comply with a requirement pursuant to sec. 2 (2) at all, correctly or in time | 2500 |
4 | fails to submit notification pursuant to sec. 7 (1) at all, correctly, completely or in time | 1000 |
5 | fails to provide information pursuant to sec. 7 (2) sentence 1 at all, correctly, completely or in time | 1000 |
6 | fails to fulfil their record-keeping obligation pursuant to sec. 7 (2) sentence 4 | 30,000 |
6a | fails to accept a measure as contemplated in sec. 7 (3) sentence 2 in violation thereof | 1000 |
7a | fails to provide a working condition in violation of sec. 8 (1) sentence 1 or (2) sentence 2 or 4 | 500,000 |
7b | fails, in violation of sec. 8 (5) in conjunction with a legislative act pursuant to sec. 3a (2) sentence 1, to pay the minimum hourly wage as provided for therein at all or in time | 500,000 |
8 | fails to fulfil an obligation pursuant to sec. 11 (1) or (2) | 1000 |
8a | allows a temporary employee to work in violation of sec. 11 (5) sentence 1 | 500,000 |
9 | fails to inform the temporary employee at all, correctly or completely in violation of sec. 13a sentence 1 | 2500 |
10 | fails to grant access in violation of sec. 13b sentence 1 | 2500 |
11 | fails to tolerate an audit or to co-operate during such audit in violation of sec. 17a in conjunction with sec. 5 (1) sentence 1 of the Act to Combat Clandestine Employment (SchwarzArbG, Gesetz zur Bekämpfung der Schwarzarbeit und illegalen Beschäftigung) | 30,000 |
12 | fails to grant access to a property or business premises in violation of sec. 17a in conjunction with sec. 5 (1) sentence 2 SchwarzArbG | 30,000 |
13 | fails to transfer data at all, correctly, completely, in the required manner or in time in violation of sec. 17a in conjunction with sec. 5 (3) sentence 1 SchwarzArbG | 30,000 |
14 | fails to submit registration at all, correctly, completely, in the required manner or in time in violation of sec. 17b (1) sentence 1 AÜG | 30,000 |
15 | fails to submit a change report at all, correctly, completely, in the required manner or in time in violation of sec. 17b (1) sentence 2 AÜG | 30,000 |
16 | fails to attach a declaration in violation of sec. 17b (2) AÜG | 30,000 |
17 | fails to prepare a record at all, correctly, completely or in time in violation of sec. 17c (1) AÜG or fails to archive such record for a minimum period of two years or | 30,000 |
18 | fails to make a document available at all, correctly, completely or in the required manner in violation of sec. 17c (2) AÜG | 30,000 |