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.
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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
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 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 [...]
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 [...]
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 [...]
