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Impact of new German coalition government on staffing industry

On 27 November 2013 the leading German political parties CDU and SPD came to an agreement on forming a coalition agreement. The main points of this 185 page agreement regarding the staffing industry are as follows:


Prevention of abuse of contract work (Werkvertrag)

Measures will be introduced to prevent illegal contractual terms regarding contract work which operate to the detriment of contract workers. There shall be more and more effective controls of staffing arrangements. Works councils will have additional information rights. Hidden employee leasing (i.e staffing companies dressing up the supply of staff as something else to avoid regulation) shall be subject to legal sanctions.


Employee Leasing Act (AUG)

Assignments of temporary workers shall be limited to 18 months. However, there shall be options to deviate from such assignment limits in collective bargaining agreements or in works agreements (Betriebsvereinbarungen). Further, there shall be equal pay after 9 months. Temporary workers cannot be used as strike-breakers (mirroring the law in the UK).

In a nutshell, there will be several changes which will affect the staffing industry. Since details are not clear at the moment, we will have to wait further development.



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