The German Personnel Leasing Act (AÜG) is facing major reforms. The German government had announced that it would present the new draft law in the next few days. We list the most important "innovations" and explain what effects they will have for temporary workers.
With the new AÜG, a lot is in store for temporary work
Maximum period 18 months
The duration of a temporary employee's assignment to a client company is to be limited in the future to 18 months maximum be limited. If he is taken on by the customer, he faces the loss of protection against dismissal, the restart of the probationary period and a change to a fixed-term employment contract. If he is not taken on by the customer company, the hirer must assign him a new assignment. However, the entitlements to industry surcharges acquired up to that point are lost in the process, as they are assignment-related. It remains to be seen to what extent collective agreements and company agreements can provide for longer assignments.
Faster at Equal Pay
With Equal Pay the temporary workers shall after nine months receive the same pay as permanent employees of the assignment company with identical activities. At Franz & Wach, this brings only a minimal change to the current situation, as our temporary employees usually receive equal pay after nine months at the latest anyway due to industry surcharges. The majority of our employees already receive equal pay after three months. This arrangement is customer-specific.
The end of sham work contracts
In the past, some companies repeatedly appeared officially as Contract for work partner but actually offered temporary staffing. In some cases, they were paid below the rates for temporary workers. The employers' associations and Franz & Wach have been campaigning against this practice for some time. Now the legislator is taking regulatory action and making the principle that applies here a general rule.
Franz & Wach among the 30 largest in the industry In July, the German Federal Employment Agency reported growing employment in temporary staffing. Now, a London-based institute is forecasting continued growth in Germany in terms of market volume as well. Among the German market participants, Franz & Wach is one of the most successful companies in recent years. The researchers of the Staffing [...]
Sometimes temporary workers tick differently than other employees. For example, they are more satisfied with family cohesion, a study reveals For seven years, the portal www.jungedeutsche.de has been investigating the living and working environments of the young generation in Germany in an ongoing study. The target group of under-40s can fill out a questionnaire online at any time. In addition, their [...]
Are you familiar with the term "subsidiary liability"? It describes a liability principle that can be very expensive for employers, because if a contracted staffing service provider becomes insolvent, the client company will be asked to pay - for all social security contributions of the temporary workers employed by it. Don't let this scenario even come close and put [...]
Christmas business: seasonal workers are now in demand
Without seasonal workers from temporary employment, many gift tables will remain empty Christmas is just around the corner. Not only in supermarkets, where speculoos and dominoes have taken over the sales areas. A look at the job boards also shows that Christmas is approaching, because many industries are looking for seasonal workers. Internet department store Amazon reports 13,000 job openings nationwide. [...]
SPD in conversation about temporary work with Franz & Wach
Dr. Jens Katzek (SPD) visits Franz & Wach branch in Leipzig Every summer, temporary employment agencies offer politicians a visit via the German Federal Employers' Association for Personnel Services (BAP). Under the title "Praxistest Zeitarbeit" (Practical Test of Temporary Employment), members of the Bundestag and candidates for the Bundestag visit individual companies to gain an insight into current issues and concerns surrounding temporary employment. Last Monday, we were visited by the [...]
Collective wage increase in temporary staffing as of April 1
Collectively agreed wages in temporary employment will rise on April 1. This also increases the number of cases in which temporary workers earn more than permanent employees. The next collective wage increase in temporary staffing takes effect at the beginning of the month. As a result, the minimum wage in temporary employment will rise to 13 euros per hour, one euro above the currently applicable statutory minimum wage. Across all pay groups [...]
Opportunities instead of hurdles for the low-skilled
People without vocational qualifications bear a particularly high risk of being affected by unemployment. Although the general unemployment rate in Germany is lower than ever before, almost one in five low-skilled workers suffers from not finding employment, according to a study by the Institute for Employment Research (IAB). But there are always opportunities. A temporary job at [...]
Franz & Wach is among the top 25 personnel service providers
Our milestone of joining the ranks of the top 25 personnel service providers in terms of revenue was achieved unexpectedly quickly. There are good reasons for this. It was an ambitious goal when our management set the course two years ago: we wanted to become one of the top 25 staffing companies by 2020. At the time, we were just in 50th place and it was foreseeable [...]
What a year it was! 2016 will definitely go down in the company's history, because during this period we celebrated successes and mastered a change process that is second to none. Being named the staffing company with the best career opportunities and reaffirming our industry growth record will remain in our memories, as will the revolutionary transformation of our leadership culture and our [...]
BAP makes a strong case for security in temporary employment
One thing is clear: Things are changing in the personnel services sector. Unfortunately, these changes are currently still characterized by uncertainty, because politicians have not yet been able to come to clearly defined decisions in all cases. The payment of temporary workers according to Equal Pay, for example, which is to come into force in 2017, is subject to numerous [...]
