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. Among others, it lays down the following principles:

• Licence obligation (Sections 1-3, Section 4 and 5): Temporary employment agencies need a so-called “licence to supply temporary workers”, which is initially issued for a limited period and which can then, after three years, be issued for an unlimited period.

• Minimum wage (Section 3a): The AÜG permits the establishment of a “binding minimum wage” at the proposal of the parties to the collective wage agreement by the Federal Employment Agency. Use was made of this regulation included ex post for the first time on 01 January 2012. There has been a minimum wage for temporary employment ever since.

• Collective wage exemption clause (Section10, Para. 4): In principle, a temporary worker must be treated (and paid) exactly the same as a comparable worker in the client company. Under the application of a collective wage agreement for temporary work, this can be deviated from. This regulations leads to a unique wage commitment of almost 100 percent in the German working world.

The entire AÜG can be viewed here: laws on the internet

Source: iGZ