Violation of equal treatment and equal pay principles

Pursuant to sec. 8 (1) sentence 1 of the Law on Temporary Employment (AÜG, Arbeitnehmerüberlassungsgesetz), the temporary employee assigned must be granted for the period of assignment to the hirer the essential working conditions including remuneration applicable in the hirer’s business for a comparable employee of the hirer.

This rule for equal treatment compared to the hirer’s regular employees is called the ‘equal treatment principle’. With regard to equal pay, this rule is called the ‘equal pay principle’.

These rules may be deviated through a collective agreement for temporary work.

However, if a temporary employment agency violates these principles without this being permitted by a corresponding collective agreement, fines of up to €500,000 may be imposed. This is all the more problematic because equal pay rules are very complex. Equal pay does not solely apply to the hourly wage of the customer’s comparable employees but to all wage components underlying the payroll of the customer’s comparable regular employee.