AÜG

Arbitnehmerüberlassungsgesetz (AÜG) is the German Temporary Employment Act that governs the temporary provision of workers by a staffing agency to an enterprise (Leiharbeitsverhältnis). It creates a three-party framework: the Leiharbeitnehmer (temporary worker) employed by the Verleihunternehmen (agency), the Entleiher (user company) where the worker is deployed, and the agency’s contract with the worker and with the client.

The Act requires agencies to hold authorisation by the Federal Employment Agency and sets conditions for operation, including safeguarding workers’ rights, equal treatment, and reporting duties. The worker remains employed by the agency, while the client controls the assignment tasks during the posting.

A key feature is the rule on equal pay after a maximum initial period. Since 2017, temporary workers assigned to the same client for nine months are entitled to the same pay and working conditions as comparable permanent employees of the client, subject to exceptions in collective agreements (Mantel- or Flächentarifverträge) that can modify pay or duration. This equal treatment covers remuneration and often other terms such as working time and holiday.

The legislation also restricts improper use of temporary work and provides enforcement mechanisms, including penalties for violations and remedies for affected workers. The AÜG thus aims to balance flexibility for employers with protections for workers in the temporary staffing market. It has undergone revisions to tighten rules on equal pay and to reflect changes in the labour market.