Revised Temporary Employment Act in effect since 1 April 2017
The amendments to the Law on Temporary Employment (AÜG, Arbeitnehmerüberlassungsgesetz) came into effect on 1 April 2017. This has led to stricter rules in many areas.
In addition to the previous provision requiring a permit for the use of temporary employees, there is now an additional obligation to disclose the contractual relationship as temporary employment.
Furthermore, the maximum temporary employment term was limited to 18 months and an obligation was added to pay the employee according to Equal Pay principles the ninth month of the temporary employment onwards. However, the Temporary Employment Act provides for certain exemptions.
Violations of the maximum temporary employment term, the disclosure obligation and the obligation to obtain permission can imply so-called fictitious employment. This means that an employment relationship between the temporary employee and the hirer is established by operation of law.
Furthermore, these violations as well as violations of the Equal Pay principle are punishable by fine.
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