THE HISTORY OF TEMPORARY EMPLOYMENT
“Dammit, what else do we have to put up with”, the American lawyers Elmer L. Winter and Aaron Scheinfeld may have thought as they were trying to find a qualified replacement for a sick secretary, to no avail, back in 1948.”
EMPLOYMENT RELATIONSHIPS
What does a temporary employment relationship look like? Every quarter, the iGZ business barometer for small and medium-sized businesses collects data and facts from temporary employment agencies that are affiliated to the iGZ about their employees and the sector.
WAGES
Autonomy in wage bargaining prevails in Germany. This means that the so-called parties to the collective wage agreement i.e. the representatives of the employees (trade unions) and the employer (employers’ associations) are responsible for the layout of the employment contract including payment.
HOW IT WORKS
Temporary work functions in a so-called three-way relationship. The vertices in this three-way relationship are
- the temporary worker
- the temporary employment agency
- the place of employment (also: client company)
ECONOMIC SIGNIFICANCE
Temporary employment exercises important functions for the economy and the employment market. Why do companies draw on temporary employment?
LEGAL FOUNDATIONS
The Law on Temporary Employment (AÜG) regulates the leasing of workers by employers (companies) “in the scope of the economic activities for work performance” (Section 1, Para. AÜG) – i.e. temporary employment. .
