When international companies intent to lease professional workers to Germany for a predictable period of time, the most important law to consider is the one related to the German Labour Leasing (Arbeitnehmerüberlassungsgesetz, AÜG) license.

The Labour Leasing License will establish a three-party relationship between the host employer, an agency and the professional. AÜG allows to lease highly specialized workers to companies that have to react to changes in their market quickly.

The AÜG will provide the leased professional the same fundamental employment conditions which normally also would apply to regular employed work forces. At the same time, however, the host companies can benefit by quickly being in the position to cover short-term demand in manpower i.e. due to production bottlenecks. One major advantage in regard to the AÜG is that the increase in staff can be terminated by notice by the host employer in a very flexible manner.

In regard to the double taxation treatment along all participating countris of the EU it is generally an option to apply for a tax exemption. The exemption has to be applied for before the employment in Germany becomes effective and only becomes approved when the working relationship of the worker in Germany is not any longer than 183 of a calendar year.

Labour Leasing can especially support German based companies to better manage own human resources capacity. Allowing a greater flexibility than regular working contracts, the AüG Licence can be obtained by companies to better adjust to high impact projects or to changes in the economy. At the same time, the Labour Leasing Licence can enforce the employer to work more efficient while keeping the risk to a minimum.

Further benefits can be named as follows

  • Minimization of corporate risk
  • Quick responds time to market changes
  • Uncomplicated access to industry specialist
  • Short and flexible job training
  • Controlled cost accounting

Lara Pairs

Attorney at Law
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Copyright Counselhouse 2017
*Copyright Counselhouse 2017. Counselhouse is a legal service provider. All legal advisory services offered on this website are provided by Lara Pairs & her team. Lara Pairs is a registered business lawyer in Switzerland.