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Staff leasing (agency work): definition and process

Staff leasing – also called agency work – is the most flexible form of working with an external workforce. This entry explains the term, the triangle, the rules and the benefits.

Key facts
  • The common name for Arbeitnehmerüberlassung.
  • A triangle of agency, hirer and temporary worker.
  • Governed by the AÜG (license, maximum period, equal pay).
  • The most flexible form of working with an external workforce.

Definition and classification

Staff leasing (also agency work) is the common name for Staff Leasing: a Staffing provider leases its employees temporarily to a client company. A triangle arises between agency, hirer and temporary worker.

The agency remains the employer and pays wages and contributions; the hirer has the authority to instruct during the assignment. For workers, staff leasing can be a way into the labor market or – through Temp-to-perm – a route into permanent employment.

What rules apply in staff leasing?

Staff leasing is governed by the AÜG : the agency's licensing requirement, a maximum assignment period of in principle 18 months, and Equal Pay and Equal Treatment. These rules are tied to deadlines and to individual people and have to be monitored continuously.

Frequently asked questions

Is Zeitarbeit the same as Leiharbeit?

Yes, the terms mean the same thing; in law it is called Arbeitnehmerüberlassung.

What benefits does staff leasing offer companies?

Flexibility during order peaks and absences, less recruiting effort, and the chance to get to know workers on assignment before taking them on permanently.

How long may staff leasing last?

In principle 18 months with the same hirer; collective agreements in the client's industry can depart from that.

Related terms

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