Staff leasing is an established instrument today for covering short-notice staffing needs. In Germany, however, placing workers has existed for more than a century – and it has changed a great deal.
The first forms
Legal regulation began in 1922 with the Employment Records Act, the core of which passed into the AVAVG in 1927. In 1931 full employer duties were imposed on intermediaries, and in 1935, under National Socialist rule, it was stopped altogether. Modern staff leasing only arose after the Second World War.
Beginnings and the first firms
In 1948 the US lawyers Aaron Scheinfeld and Elmer Winter founded the first staffing company, Manpower Inc. The model spread rapidly and reached Europe via Paris and London (1956). In 1962 ADIA Interim (today Adecco) opened the first German branch in Hamburg – at the time still against the law in force, which is why the Federal Labor Office filed criminal complaints.
The German Temporary Employment Act
On 4 April 1967 the Federal Constitutional Court ruled that the state monopoly on job placement was incompatible with the freedom to choose an occupation (Art. 12 of the Basic Law). In 1970 the Federal Social Court called for minimum social protection. In 1972 the Act Governing Commercial Staff Leasing (AÜG) finally came into force – with a licensing requirement, state supervision and protection under employment and social law.
The most important reforms
The AÜG has been reformed continuously ever since:
- 1985–1997: the maximum assignment period was extended step by step from three to twelve months.
- 2004: the maximum period was abolished and equal treatment written into law (the Hartz reforms).
- 2011: a generally binding wage floor and a „revolving-door clause" against circumvention.
- 2017: the maximum assignment period was limited to 18 months and equal pay after 9 months made mandatory.
Staff leasing today
During the coronavirus pandemic in 2020, staff leasing helped close gaps in essential occupations. At the end of 2023 the associations BAP and iGZ merged into the German Staffing Association (GVP). Today staff leasing employs around 830,000 people – about 2 percent of the working population – and above all absorbs market volatility and fluctuations in business.
Frequently asked questions
How long has staff leasing existed in Germany?
The first rules date from the 1920s; modern staff leasing arose after the Second World War, and the first German branch opened in 1962.
When did the AÜG come into force?
In 1972 – the Act Governing Commercial Staff Leasing created a licensing requirement and minimum social protection.
What changed in 2017?
The maximum assignment period was limited to 18 months and equal pay after 9 months made mandatory.
How many people work in staff leasing?
Around 830,000 – about 2 percent of the working population in Germany.