Contract type · Staff Leasing

Manage Staff Leasing safely, without constantly chasing deadlines and records

Pactos keeps track of AÜG deadlines, licenses and certificates and shows early when a record or deadline for an assignment is about to expire.

Book a call See Compliance Intelligence

What expires when

Remaining validityDeadline
Schematic view, not to scale. The marker shows the respective deadline. If a record expires before then, this is flagged in time.

Companies manage their Staff Leasing with Pactos

Vaillantunique PersonalserviceVolvoKNUTH WerkzeugmaschinenNoerpel GruppeHive TechnologiesManpowerSCS Supply Chain StaffingBürgerTalent Spring Expertum
How it works today

This is how Staff Leasing runs today

Checking the license, keeping an eye on deadlines, keeping records current: in Staff Leasing all of that comes due before the first person starts, and it stays for the whole assignment. Usually it runs by hand, provider by provider and person by person.

Checking licenses, keeping track of deadlines and keeping records current is part of Staff Leasing from the very start. In many companies, this is still done manually, for every provider and every person separately.

One email per provider

Obtaining the license and the records

In a list

Before the first assignment, the provider's valid temporary staffing license, insurance and further certificates have to be on file. With many providers, this quickly turns into a lot of coordination by email.

Tracking deadlines by hand

The maximum assignment period, equal pay and expiring work permits are each tied to a specific person. These deadlines are often still kept in spreadsheets that have to be updated continuously.

In the calendar, if at all

Deadlines are recognized too late

The result

If the license is missing or social security contributions are not paid, the hirer carries the risk — through secondary liability, up to the leasing contract becoming void. A missed deadline is therefore not a formality, it is your risk.

If the maximum assignment period is exceeded or equal pay is applied too late, this often only comes to light in a later inspection. Multiple assignments of the same person through different providers also easily go unnoticed.

Vendor Intelligence · Compliance module

In Staff Leasing every obligation hangs on a specific person and their assignment. Run vendor and workforce management in one system and compliance needs no separate administration: license, deadlines and certificates are linked directly to provider, person and assignment. If a valid record is missing, the person cannot be scheduled in the first place.

Records per vendor in Pactos: counters for complete, expiring, being retrieved and missing, and below them the records with issuer and validity, from the clearance certificate to the temporary staffing license.
In Vendor Intelligence, compliance is linked directly to the assignment
Compliance Intelligence · standalone product

Even without a VMS: Compliance Intelligence obtains records directly

You grant the authorization once. Pactos then obtains the records directly from health insurances, professional associations and the Federal Employment Agency. This creates one shared process for client and provider instead of the same request being made twice.

Compliance overview in Compliance Intelligence: per staffing provider the status of the temporary staffing license, the health insurances' response and the professional associations' response.
Views from Compliance Intelligence. Not a module of the VMS but a product of its own.

An extract from Compliance Intelligence

This page describes the Staff Leasing contract type. The solution behind it — data package, provider portal and reporting — is set out in full on the product page.

See Compliance Intelligence live

Frequently asked questions

Equal pay and the maximum assignment period are tracked directly on the person in the assignment. As a deadline approaches, the assignment is flagged early.
In Staff Leasing, a staffing provider leases its own employees to a client company. The employees stay employed by the provider but work under the hirer's direction and on the hirer's premises. This is governed by the German Temporary Employment Act (AÜG), which requires an official license.
What is Staff Leasing?
The hirer has to check the provider's valid temporary staffing license, observe the maximum assignment period and equal pay, ensure that the people deployed hold valid work permits, and document the leasing. If the license is missing, the leasing contract can become void.
What obligations does the client company have?
Under the AÜG a person may in principle be leased to the same hirer for at most 18 consecutive months. Collective agreements can set different limits. If the period is exceeded, an employment relationship with the client company can come into being.
What does equal pay mean?
After nine months of assignment at the latest, leased employees are entitled to the same pay as comparable permanent staff. Industry supplement agreements can move that point in time. From the cut-off date the entitlement has to be applied correctly.
What does the 18-month maximum assignment period mean?
Because of secondary liability. If the provider does not pay the social security contributions for the leased employees, the hirer can be held liable for them. Evidence through clearance certificates is therefore not a formality.
Why is the hirer liable for social security contributions?
With Vendor Intelligence you run the whole process from staffing request to invoice. Compliance Intelligence checks the staff leasing license, the maximum assignment period, Equal Pay deadlines and expiring work permits automatically, and spots duplicates across providers.

Want to know more?

How does Pactos support Staff Leasing?

Book a call