Hiring temporary employees

The hiring-out of trainees, also known as temporary work, temporary work, or personnel leasing, means that an employer leaves an employee to a third party for a limited period of time and for remuneration. The rights and obligations of the employer remain with the lender during this period. The following contractual relations exist between the three parties: the lender and the borrower conclude a contract for the borrower to pay money to the lender for the temporary hiring of a worker. There is no employment relationship between the borrower and the temporary worker, but only between the latter and the lender.

Employers have some advantages when hiring a temporary worker for a limited time instead of signing an employment contract with a new employee:

  • Flexibility: This allows for the quick balance of order peaks, and a large selection of applicants is available at short notice.
  • Cost savings: The costs are easy to calculate, and there are no costs for holidays or illness.
  • Less red tape: time-consuming and expensive selection procedures for applicants are eliminated.

Temporary employment and hiring in practice

In practice, national auditors check whether all the requirements for hiring employees are met in practice. In any case, a so-called framework conditions of the relationship between the lender, the borrower, and the employee, i.e. the rights and obligations of all parties involved.

What are the rights of temporary agency workers? According to the law, temporary workers must be treated in the same way as the regular workforce. Minimum working conditions must also be respected. These include the correct classification of temporary agency workers by collective agreement, compliance with the minimum wage, and the granting of leave and remuneration even during periods of non-employment. In addition, wage caps and the deduction of social security contributions must be taken into account.

Companies wishing to lend workers, therefore, require permission from the relevant employment agency. The time limit for the hiring-out of a worker is also laid down here. The use of temporary agency workers may take place for a maximum of 18 months to the same borrower. If the maximum period of release is exceeded or the lender does not have a permit to leave, the borrower and temporary agency worker have the opportunity to enter into an employment relationship.