Orrick’s 101 – Temporary Work – November 2021 | Orrick, Herrington & Sutcliffe LLP

1. What is temporary work? Temporary work (Arbeitnehmerüberlassung) is a highly regulated field of activity in Germany and occurs when an employer (agency) provides a third party (client) with an employee he employs, the temporary worker (temporary worker). The Temporary Worker is fully integrated into the Client’s work organization and is subject to the Client’s instructions. However, the employment relationship exists between the Agency and the Temporary Worker, no employment relationship between the Client and the Temporary Worker is established. 2. What alternatives exist to temporary work? The assignment of personnel to third parties on the basis of a service contract (Dienstvertrag) or an employment contract (Werkvertrag) must be distinguished from temporary work. Unlike temporary work, employees remain included in the organization of the service provider/contractor and are subject to its instructions, although they work for a third party. In these cases, the rules on temporary work do not apply. However, great caution is indicated here: if it turns out that, despite the agreement of a service or employment contract, the employees have been integrated into the organization of the third party, it may be unauthorized temporary work, which can lead to fines. for the agency and the client and the creation of a working relationship between the client and the temporary worker

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