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.
The temporary employment market in Germany has experienced a significant growth spurt in recent years. According to official figures from the German Federal Employment Agency, which go back to the summer of 2015, around 960,000 people were working as temporary staff at mid-year. Two years earlier, the figure was around 100,000 fewer. Temporary workers accounted for 2.7 percent of all employees in Germany as of June. The [...]
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 [...]
On April 1, the new German Personnel Leasing Act (Arbeitnehmerüberlassungsgesetz) comes into force. We explain to you what will fundamentally change in personnel services from this day on.
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 [...]
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 [...]
The extension of the maximum period of temporary employment in the metal and electrical industry to 48 months is about to be concluded. Following the agreement between IG Metall and the employers' association Gesamtmetall, the official decision is now pending as part of negotiations on industry surcharges. The agreement makes it clear that IG Metall also understands the benefits of the extended maximum period of temporary employment [...]
Labor market: long-term unemployment almost halved
The number of people who have been unemployed for at least a year or more fell significantly in just under a decade. While around 1.9 million people in Germany were still affected by long-term unemployment at its peak in 2006, the number had fallen to around one million by 2014, according to statistics from the Federal Employment Agency. 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 [...]
Management model presented at the temporary staffing industry meeting
Experts enthusiastic about Franz & Wach leadership model The event agency Meet the Experts Academy held a specialist conference on personnel services on July 6, 2017 in Hamburg under the title "Branchentreff Zeitarbeit". Specialist experts from companies and associations highlighted various aspects of personnel services and passed on their knowledge to the participants. The event, which was held for the first time in November 2016 [...]
Collective agreement increase: Temporary employment wages gain strongly in purchasing power
Temporary wages are rising much faster than the cost of living in Germany. There is no end in sight to this trend, and the next wage increase will already follow next year. Life in Germany became around 0.9 percent more expensive in 2014 than in the previous year. This is shown by the consumer price index, which is calculated by the Federal Statistical Office and shows the price development of [...]
