Reasons for denial of an AÜG-license to operate a temporary employment agency (part III)

If the appli­cant is not reli­able because he vio­lates reg­u­la­tions (read more…) or con­ceals past vio­la­tions of the law (read more…), he may be denied the license to oper­ate a tem­po­rary employ­ment agency. Oth­er rea­sons for denial are, for instance:

Insufficient company organisation (sec. 3 (1) no. 2 of the German labor leasing act (AÜG, Arbeitnehmerüberlassungsgesetz))

The employ­er must ful­fil his usu­al oblig­a­tions as an employ­er. Oth­er­wise he can be denied the license to oper­ate a tem­po­rary employ­ment agency. In con­crete terms, the employ­er must prop­er­ly account for and pay wages, ful­fil his report­ing oblig­a­tions and pay tax­es and social con­tri­bu­tions. The com­pa­ny organ­i­sa­tion also includes the exis­tence of per­ma­nent busi­ness premis­es and stan­dard office equipment.

Failure to provide the working conditions applicable to the customer’s company (sec. 3 (1) no. 3 AÜG)

Although sec. 3 (1) no. 1 AÜG already men­tions the vio­la­tion of labour law oblig­a­tions, sec. 3 (1) no. 3 AÜG specif­i­cal­ly refers to the vio­la­tion of the prin­ci­ple of equal­i­ty pur­suant to sec. 8 AÜG. This under­lines the impor­tance of com­pli­ance with the pro­vi­sions of sec. 8 AÜG pur­suant to which the tem­po­rary employ­ment agency must either grant the tem­po­rary employ­ee equal treat­ment or cor­rect­ly apply a col­lec­tive agree­ment for tem­po­rary employ­ment (iGZ/BAP) (read more…).

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