The AÜG, or Arbeitnehmerüberlassungsgesetz, is Germany's pivotal law that governs the temporary assignment of employees to other companies through staffing agencies or temporary employment agencies, ensuring structured legal frameworks and protective measures for temporary workers.
Understanding the AÜG: Germany's Employee Leasing Act
The Arbeitnehmerüberlassungsgesetz (Employee Leasing Act), commonly abbreviated as AÜG, is the legal backbone for temporary employment in Germany. It sets clear rules for the relationship between the staffing agency (the employer), the client company (where the work is performed), and the temporary employee. Its primary goal is to prevent the exploitation of temporary workers and ensure fair working conditions comparable to those of permanent staff.
Key Principles and Regulations of the AÜG
The AÜG was last significantly reformed in 2017 to strengthen the rights of temporary employees. Here are its core tenets:
- Permission Requirement for Staffing Agencies: Any company wishing to operate as a temporary employment agency (Verleiher) must obtain a special permit from the German Federal Employment Agency (Bundesagentur für Arbeit). Operating without this permit is illegal.
- Equal Treatment Principle (Gleichstellungsgrundsatz): Temporary employees must receive the same essential working conditions, including remuneration (pay), working hours, and vacation days, as a comparable permanent employee in the client company (Entleiher) from their first day of assignment. Deviations are only possible under specific collective bargaining agreements (Tarifverträge) that ensure equivalent conditions.
- Maximum Assignment Period (Überlassungshöchstdauer): A single temporary employee generally cannot be assigned to the same client company for more than 18 consecutive months. After this period, the employee must either be permanently hired by the client company, return to the staffing agency, or be assigned to a different client company. Exceptions can be made through collective agreements at the client company level.
- Prohibition of "Revolving Door" Leasing: The law includes provisions to prevent employers from circumventing the 18-month limit by rotating temporary employees through different assignments within the same client company without a genuine break.
- Disclosure and Information Obligations:
- The contract between the staffing agency and the temporary employee must explicitly state that it is a temporary employment relationship.
- The contract between the staffing agency and the client company must clearly designate the employee as a temporary worker.
- Temporary employees must be informed about comparable permanent positions within the client company.
- Prohibition During Strikes (Gleichlaufverbot): It is generally forbidden to deploy temporary workers in a client company if their work directly replaces employees who are striking. This rule protects the right to strike.
The Roles Defined by AÜG
The AÜG clearly distinguishes between the three parties involved in temporary employment:
| Role | German Term | Responsibilities & Rights |
|---|---|---|
| Staffing Agency | Verleiher | Legal employer of the temporary worker. Responsible for wage payments, social security contributions, sick pay, vacation pay, and obtaining the AÜG permit. |
| Client Company | Entleiher | The company where the temporary worker performs their duties. Responsible for integrating the worker into the team, providing a safe working environment, and adhering to the equal treatment principle and maximum assignment periods. Does not become the legal employer. |
| Temporary Employee | Leiharbeitnehmer | The individual working for the client company. Legally employed by the staffing agency but works under the direction of the client company. Entitled to equal treatment, proper contracts, and protection against overly long assignments. Retains employee rights against the staffing agency (e.g., notice periods for termination). |
Practical Implications and Benefits
The AÜG provides crucial flexibility for German businesses while safeguarding worker rights.
- For Businesses:
- Allows companies to manage peak workloads or cover staffing gaps (e.g., due to parental leave or illness) without increasing their permanent headcount.
- Provides a testing ground for potential permanent hires, enabling both parties to assess suitability before committing to a long-term contract.
- Helps companies respond quickly to market fluctuations or specific project needs.
- For Employees:
- Offers an entry point into the labor market, especially for those seeking to gain experience or re-enter employment.
- Provides diverse work experience across different industries and companies.
- Ensures a legal framework for fair wages and working conditions through the equal treatment principle.
Navigating AÜG Compliance
Compliance with the AÜG is critical. Violations can lead to severe penalties, including fines, the invalidation of employment contracts, and even the loss of the staffing agency's permit. Both the staffing agency and the client company bear responsibility for adhering to the law.
For detailed information on the Arbeitnehmerüberlassungsgesetz, you can consult official government resources:
- Bundesministerium für Arbeit und Soziales (BMAS) - Arbeitnehmerüberlassung
- Bundesagentur für Arbeit - Informationen für Verleiher
Understanding the AÜG is essential for anyone involved in temporary employment in Germany, from staffing agencies and client companies to temporary employees themselves, ensuring transparent and legally compliant work arrangements.
