Need for adjustment in the temporary employment sector

What’s changed?

Due to changes in the provisions of the German Verification Act (German: Nachweisgesetz), temporary employment agencies in Germany also have extended information obligations when hiring new employees.

Companies offering the services of temporary employment agencies in Germany must adapt their employee documentation to the revised regulations. Among other things, the following working conditions must additionally be recorded in writing:

• the composition and amount of remuneration, including remuneration for overtime, allowances, bonuses and special payments as well as any other components of remuneration,
• the nature and amount of the remuneration for periods during which the temporary agency worker is not on loan
• the agreed working hours, rest breaks and rest periods and, in the case of shift work, the shift system, the shift rhythm and the conditions for shift changes,
• the possibility, if any, of ordering overtime and the conditions for such overtime,
• the procedure to be followed by the employer and the employee in the event of termination of the employment relationship
• a reference to the applicable collective agreements, works agreements and service agreements,
• any entitlement to company training or company pension schemes
• the end date or expected duration in the case of fixed-term employment relationships.

For whom are the changes particularly important and why?

The implementation of the new legal requirements is of particular importance for entrepreneurs in the temporary employment industry. Jobs in temporary work are the most strictly controlled in Germany.

Entrepreneurs who work in temporary employment must always comply with all legal requirements so that their licence is renewed or not revoked.

The employment agencies therefore also check whether the amended regulations of the Verification Act are complied with.