What is considered as ‘Temporary Work’ in Germany?
Subcontracted labour (“Leiharbeit”) is also known as temporary employment or temporary work. With a Contract/ temporary work employees are given to a company (borrower) for a certain period of time by a hiring company, where they are usually employed for an unlimited period. The rights and obligations of the employer, including payment, lie with the lender.
Although you will work for the (borrower) company, you will not be considered as part of their regular employee. The temporary employment agency or company will remain as your employer as they will be the ones who pay you your wages and cover other required employer duties for example when it comes to handling your work conditions, vacation or sick days and your social insurance contributions.
According to the Temporary Employment Act (AÜG), the “principle of equality” applies to temporary work, i.e. the lender is obliged to grant the temporary worker the “essential working conditions” including wages that apply in the hiring company for comparable employment (so-called “equal treatment” and equal pay).
Any industry can offer temporary work. Most temporary employment offers are often available in the metal and electronic industries as well as the security, logistics, transport sectors. Unskilled workers are often sought-after and hired by temporary employment agencies. It is usually easier to find a job at a temporary employment agency. Subcontracted labour can, therefore, function as an opportunity for entering the German job market.