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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, The new law will bring material changes for both, employment agencies and their customers, the host businesses.
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.
Hire times prior to entering into force of the Act shall be expressly excluded.
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In case of a repeated supply of the same temporary employee to the same hirer, the deployment periods will be added up if the interruption is no longer than three months. Thus, if the deployment is interrupted for at least three months and one day, the maximum period begins to start anew and previous deployments will not be taken into account.
A deviation from the maximum hire term is only possible by collective bargaining agreements or via works agreement on the basis of such collective bargaining agreements. If the collective bargaining agreement does not stipulate the extent of permitted deviation by the parties, companies that are not bound by collective bargaining agreements may determine a maximum hire term of up to 24 months via works agreement.
There is no time limit for companies bound by collective bargaining agreements. In case of exceeding the maximum term, an employment relationship between the host business and the temporary employee is created, provided the temporary employee does not object to this after the maximum hire term is exceeded.
In this case, the employment relationship with the agency persists. Equal pay no later than after nine months: Generally, after nine months temporary employees have to be put on an equal footing with comparable permanent employees of the host business. As with the maximum hire term, deployment times prior to entering into force of the Act shall not be taken into account.
This means, if the Act enters into force as planned on January 1,mandatory equal pay will apply for the very first time as from October 1, With regard to the calculation of the nine-month period for equal pay, deployment periods will also be added up if the interruption is no longer than three months.
In case a collective bargaining agreement providing for surcharges for specific industry sectors Branchenzuschlagstarifvertrag applies, equal pay applies only after 15 months. However, the utilization of the longer deviation up to 15 months is only possible if the collective bargaining agreement provides for a gradual accession process to the remuneration of the permanent staff not later than after a training period of six weeks.
Bogus Work and Service Contracts: In case of bogus work and service contracts with a permit for the supply of temporary employees, in future an employment relationship between host business and temporary employee will arise.
These are contracts that according to the written contract provide for the construction of a work or the performance of services, however, in practice turn out to be supply of staff.
Only if the supply of temporary employees is unambiguously recognizable as such and a permit exists i. Designation of Temporary Employees in Leasing Contract The temporary employees to be supplied in future have to be designated by name prior to every supply of employees.
If the temporary employee is not designated at all, not designated correctly or not designated in a timely manner in the leasing contract prior to the supply of employees, there is an impending fine of up to EUR Prohibition of Work of Temporary Employees as Strikebreakers: In future, striking employees of the host business may not be replaced by temporary employees.On June 1, , the draft law regarding the reform of the German Act on the Supply of Temporary Employees (Arbeitnehmerüberlassungsgesetz – AÜG) has been adopted.
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