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…).