Employee Leasing – Rules for Hiring Temporary Workers

What is Arbeitnehmerüberlassung (temporary staff leasing)? A legal system where a licensed company hires workers and temporarily assigns them to other firms for payment, under strict regulation by the AÜG.

Key rules under AÜG:

• License: Only companies with valid permit from Federal Employment Agency may lease workers.

• Time limit: Same worker max 18 months at same company.

• Equal Pay: After 9 months, worker must receive same pay/benefits as permanent staff.

• Written contract: Leasing contract required before start.

• Restrictions: Not allowed in strikes or Meisterpflicht trades without proper qualification.

• Documentation: Hiring company must record duration and tasks.

If leasing from unlicensed company:

• Contract invalid

• Worker considered your direct employee

• Fines up to €500,000

• Liability for wages, taxes, social security

Advantages:

• HR flexibility (seasonal peaks)

• Fast recruitment

• Lower risk of long-term contracts

Costs: Not always cheaper – agency adds margin: 12–15 €/h wage → 18–25 €/h leasing fee.