German Act on the Supply of Temporary Employees

Using Temp Agencies in Germany: New Restrictions for Companies

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On June 1, 2016, the draft law regarding the reform of the German Act on the Supply of Temporary Employees (Arbeitnehmerüberlassungsgesetz – AÜG) has been adopted by the Federal Cabinet. The German Bundestag will address the draft law after the summer break. However, material changes to the draft are not expected to be made during the parliamentary process. If the time schedule will be observed, the reform will come into force as planned on January 1, 2017.

The new law will bring material changes for both, employment agencies and their customers, the host businesses.

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“Temporary Employees” in Germany Need to be Temporary Under New Draft Law

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Draft legislation regarding the reform of the German Act on the Supply of Temporary Employees (Arbeitnehmerüberlassungsgesetz – AÜG) has been introduced by Germany’s Federal Minister of Labor. Although further amendments to this draft are likely and a final version will not come into force before January 1, 2017, it is important to know what this means for temporary employment agencies and their customers, the host businesses.

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“Temporary Employees” in Germany need to be Temporary under New Draft Law

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After a long wait the time has finally come: the draft ministerial bill regarding the reform of the German Act on the Supply of Temporary Employees (Arbeitnehmerüberlassungsgesetz – AÜG) is out. On November 16, 2015, the draft bill entered “early coordination,” i.e. a period of coordination with the Office of the Federal Chancellor prior to coordination between the various ministerial departments. The cabinet decision is due by the end of the year. The law is expected to come into effect on January 1, 2017.

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