Orrick’s 101 – Employment Law in Germany NEW: Agency Work

1. What is Agency Work?

Agency work (Arbeitnehmerüberlassung) is a highly regulated business area in Germany and occurs when an employer (Agency) provides a third party (Client) with an employee employed by him, the Agency Worker (Agency Worker). The Agency Worker is fully integrated into the Client's work organization and is subject to the Client's instructions. The employment relationship, however, exists between the Agency and the Agency Worker, no employment relationship between the Client and the Agency Worker is being established.

2. What Alternatives Exist to Agency Work?

Third-party personnel deployment on the basis of a service contract (Dienstvertrag) or work contract (Werkvertrag) is to be distinguished from agency work. In distinction to agency work, the employees remain included in the service provider's/contractor's organization and are subject to their instructions, although working at a third party. In these cases, the rules on agency work do not apply. However, great caution is indicated here: If it should turn out that, despite the agreement of a service or work contract, the employees were integrated into the third party's organization, this can be a case of unauthorized agency work, which can result in fines for Agency and Client and the creation of an employment relationship between the Client and the Agency Worker.

Please see full Publication below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Orrick, Herrington & Sutcliffe LLP | Attorney Advertising

Written by:

Orrick, Herrington & Sutcliffe LLP
Contact
more
less

Orrick, Herrington & Sutcliffe LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.