We are delighted to announce that we have been granted an AüG labour leasing licence. We have also become members of the GVP (Gesamtverband der Personaldienstleister e.V.) and the IZS (Institut für Zahlungssicherheit GmbH), enabling us to offer robust temporary employment services.

In light of this exciting development, we would like to share some information on what an AÜG licence is and how it works, as well as our additional membership benefits.

What is an ANÜ/AÜG (Arbeitnehmerüberlassungsgesetz) Licence?

If you wish to operate as a temporary employer in Germany and provide employees to third-party clients, the Federal Employment Agency must review your company and grant you an AüG labour leasing licence. This gives the company legal approval to lease its employees to another entity.

However, an AüG supply of labour does come with a few nuances that are different to those in most other European countries.

Contractual Chain

Due to employment and leasing laws, the employer (and therefore the AüG licence holder) must contractually engage and receive payment from the “End user client” of the temporary employee’s assignment or project.

This means that, in comparison to the majority of other countries, there cannot be an intermediary in the contractual chain between the AüG-licensed employer and the end client.

Comparable/Equal Pay Requirements and Wage Tariffs

Like most countries, Germany has laws to protect its temporary workers in comparison to permanent counterparts doing the same, or a similar, role for the client. These requirements are in place to ensure there is no exploitation of individuals.

When checking whether a temporary worker’s pay is adequate, two aspects must be considered: wage tariffs and comparable salaries. Both of these aspects must be met for the temporary worker.

• Wage Tariffs – the two largest federal employers’ associations, BAP and iGZ, have merged to form the GVP. This association allocate wage tariffs to follow. These are minimum hourly rates based on an individual’s experience and qualifications, and determine the required minimum taxable hourly rate.
• Comparable Client Checks – for any temporary employee, a check is made to determine what the comparable taxable payment would be for the role being completed if it had been offered on a permanent basis. This information is then used to ensure that the total charge rate is sufficient to achieve this taxable rate after accounting for associated employer costs.

Therefore, both the hourly wage tariff and the comparable client package are checked, and the higher of the two hourly rates is applied to the employee’s pay as a minimum.

Maximum length of contract

Employment can be offered under AüG for up to a maximum of 18 months.

Right to work for non-EU nationals / EU Blue Cards

For temporary employees, the only way for a non-EU national to have the right to work in Germany (currently) is via an EU Blue Card.

There are certain requirements that must be fulfilled to be eligible for this, such as:

• Needing to obtain a fixed address in Germany
• Hold a minimum 6-month contract
• Hold a recognised University degree from a recognised University
• Have a contract offer on a fixed monthly salary
• Achieve the minimum salary threshold or comparable salary requirements (whichever is higher)
• Be able to provide proof of German health insurance coverage
• The application would be made at the German embassy closest to the candidate’s residence.

This application can take around 8 weeks to be approved.

GVP Membership

Since the 21st of June 2023, the members of both associations (iGZ and BAP) opted for a joint, strong branch representation which become the GVP “Gesamtverband der Personaldienstleister e.V.”.

The GVP is one of the largest employers’ associations in Germany. It represents around 6,000 member companies and, together with the DGB trade unions, organises the working and social conditions for around 800,000 temporary workers.

By becoming members of the GVP, Liberty Bishop demonstrates its commitment to offering compliant employment services in Germany. Membership also provides us with legal counsel and advice on changes to tariff agreements, enabling us to price our services correctly for our customers and clients.

IZS Membership

IZS has been Germany’s leading managed compliance platform for personnel services since 2011, ensuring smooth, secure and lucrative collaboration between temporary staffing agencies and deployment companies.

The IZS has an online compliance portal that connects with the following German entities: Social Insurance Offices, Employers’ Liability Insurance Associations, and the Federal Employment Agency. The portal outlines which temporary employment agencies are up to date with their social security declarations and payments, accident insurance contributions, and importantly, have an active AÜG licence.

Liberty Bishop’s support

We are here to support and guide you through the complexities of working and placing individuals in Germany. We do this by running financial calculations and checks on all comparable elements in a unique, streamlined way. We also provide draft contracts in partnership with agencies and subcontractors. We communicate with the supply chain to take all necessary steps efficiently and correctly.