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.
What Agencies and Their Customers Need to Know Now:
- Maximum hire term of 18
months: In future, the same temporary employee may only
work for the same hirer for a period no longer than 18
consecutive months. If this maximum period is exceeded, an
employment relationship between the temporary employees and the
host business is established by law.
