Information for Employees
Temporary employment
Temporary employment involves a triangular relationship between an employer (temporary employment agency), an employee (temporary agency worker) and the company to which the employee is assigned. The employee signs an employment contract with a temporary employment agency or personnel service provider.
Individuals employed as temporary agency workers do not necessarily receive a »temporary employment contract«. As a rule such temporary agency workers are given an employment contract of unlimited duration.
The temporary employment agency then assigns the temporary agency worker to a company that currently needs additional personnel. Thus temporary agency workers do not perform duties for their employers, but for the companies to which they are assigned on loan. Thus we speak of loan work or employee lending.
On the other hand, many companies take advantage of temporary employment arrangements to find qualified workers, without having to hire them permanently. When an assignment ends, the employee returns to the employer who assigned him/her on loan. That is always the temporary employment agency, which is invested with all rights and obligations. The agency grants and pays leave, pays social security contributions and wage taxes and is required to comply with all applicable labour and social welfare laws – even during periods in which the temporary agency worker is not on assignment.
The relationship between personnel service providers and the companies to which workers are assigned is subject to the provisions of the Arbeitnehmerüberlassungsgesetz (Employee Lending Law, AÜG). Most temporary employment agencies also operate under the terms of a collective bargaining agreement.
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From April 1, 2021, temporary workers may not be employed in the meat industry. Only companies in the butchery sector with up to 49 employees are excluded from this rule.
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