Reasons for denial of a license to operate a temporary employment agency (part II)

In addi­tion to the ‘usu­al’ grounds for deny­ing the license to oper­ate a tem­po­rary employ­ment agency (read more…), rea­sons for deny­ing the license can already exist when the appli­ca­tion for the license to oper­ate a tem­po­rary employ­ment agency is sub­mit­ted for the first time:


Incorrect application documents

If the appli­cant sub­mits appli­ca­tion doc­u­ments which are inten­tion­al­ly or neg­li­gent­ly incor­rect, this can cause the Fed­er­al Employ­ment Agency (Bun­de­sagen­tur für Arbeit) to deny the license from the very beginning.


Straw man

If the man­ag­ing direc­tor of a tem­po­rary employ­ment agency has appoint­ed a straw man, the deci­sive ele­ment is not the reli­a­bil­i­ty of this straw man, but of the per­son rep­re­sent­ed by him. If the per­son behind the straw man was already denied a license, the Fed­er­al Employ­ment Agency will usu­al­ly also deny the license to the straw man.


Violations of law

If the appli­cant was con­vict­ed of prop­er­ty crimes, such as fraud, com­mit­ted in the past, this may be an indi­ca­tion of a lack of reliability.

Par­tic­u­lar­ly rel­e­vant in this respect are cas­es where the appli­cant has already come into con­flict with reg­u­la­tions that serve to pro­tect employees.

Exam­ple: An appli­cant was already fined for vio­lat­ing the Work­ing Hours Act in his com­pa­ny. In this case, a detailed state­ment to the Fed­er­al Employ­ment Agency is often required in order to explain why the appli­cant has the nec­es­sary reli­a­bil­i­ty despite these violations.


See Part I and Part III for more rea­sons that can lead to denial of the license to oper­ate a tem­po­rary employ­ment agency.