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AÜG: the German Temporary Employment Act

The AÜG is the central set of rules for staff leasing in Germany. This entry summarizes what the act governs, how the 2017 reform works out and what breaches lead to.

Key facts
  • Governs commercial staff leasing in Germany.
  • The agency needs a license under § 1 AÜG.
  • Maximum assignment period in principle 18 months (§ 1 (1b), since the 2017 reform).
  • Equal treatment from day 1, equal pay after 9 months at the latest (§ 8).

Definition and classification

The AÜG (Arbeitnehmerüberlassungsgesetz) is the German act that governs the commercial leasing of employees . It protects temporary workers and sets the framework within which agencies and hirers may work together.

The act dates from 1972 and has been reformed several times. The 2017 reform brought the central tightening: a fixed maximum assignment period and a concrete definition of equal pay.

What exactly does the AÜG govern?

The core points are the licensing requirement for the agency (§ 1), the maximum assignment period of 18 months (§ 1 (1b)), the equal treatment rule and Equal Pay (§ 8), the temporary worker's right to information (§ 13) and the legal consequences of breaches (§§ 9, 10).

What are the consequences of breaches?

Depending on the breach, the contracts are void, an employment relationship with the hirer is deemed to exist, and there are fines and the loss of the license. Because the rules are tied to deadlines and to individual people, complying with them is an ongoing task – best monitored automatically rather than in spreadsheets.

Frequently asked questions

Since when has the 18-month limit applied under the AÜG?

It was introduced with the AÜG reform on 1 April 2017; assignment time before that is not counted.

Does the AÜG also apply to a Werkvertrag?

No, a genuine Werkvertrag does not fall under the AÜG. But if a Werkvertrag is in fact carried out like leasing, the rules and consequences of the AÜG apply nonetheless.

Can collective agreements depart from the AÜG?

On certain points yes – for example on the maximum assignment period and the equal pay deadline. Such departures are only permitted through collective agreements and within the limits the act sets.

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