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Renewal of The Permit For Staff Leasing in Germany
In Germany, the permit for staff leasing is initially only issued to companies for the limited period of one year. After the end of one year, the permit will expire unless an application for a renewal of the temporary employment permit is submitted. It is very frustrating and damaging to business if previously concluded contracts cannot be fulfilled because the permit has expired. We therefore advise our clients to take care of the renewal of the permit in due course and to exercise sufficient diligence in doing so.
When must the application for the renewal of the staff leasing permit be submitted?
The renewal must be applied for at least three months before the expiry of the existing permit.
Where must the application for renewal be submitted?
The application for renewal must be submitted to the German authority that issued the existing permit, unless the applicant's place of business or residence has changed and is now in the jurisdiction of another employment agency. Then the application must be submitted to this agency.
When applying for a renewal of the temporary employment permit, the application document provided by the employment agency must be used.
Which documents are required for a staff leasing renewal?
Since this document must be completed for both the initial application for the staff leasing permit and for the renewal, the documents previously submitted for the initial application must always be resubmitted.
German employment agency intensively reviews the renewal
In contrast to the initial application, the renewal of the staff leasing permit is closely examined in terms of the applicant’s previous observation of the legal requirements, in particular those of the German Temporary Employment Act. Therefore, in addition to some annexes submitted in the initial permit application process, many other annexes will be reviewed by the employment agency.
Deficiencies which were criticized during the first inspection, but did not lead to the refusal of the permit, must absolutely be remedied before a renewal.
The review is usually carried out on a random basis. The employment agency decides how many and which contracts with temporary agency workers and hirers will be reviewed. In particular, the Equal Pay and the Equal Treatment Principle is reviewed, provided that no collective wage agreements have been applied.
Payment on public holidays and in case of sickness is under consideration
Therefore, clean and complete documentation must be ensured in advance. Compliance with the guaranteed wage principle, according to which the temporary employee must receive a contractually agreed fixed salary even during the periods in which the employer/lender cannot hire them, is also reviewed. In this context, errors often arise with regard to payment on public holidays and continued payment in the event of illness. The documentation of the actual working hours as well as rest periods and breaks are also frequently the subject of the review.
In addition to the consequence that the permit will not be renewed if the regulations are not complied with, the managing director faces fines of up to EUR 500,000 for violating the regulations of the German Temporary Employment Act.
A summary of ten important points to keep in mind when leasing staff in Germany
Our consulting services for staff leasing in Germany
We will gladly help you compile the requested documents immediately before the review and examine them in advance - also by way of ongoing consultation - for their completeness and legality. We also assist German and international companies, personnel service providers and nonprofit organizations with
- the compilation of all documents to be submitted,
- the timely submission of all documents to the Federal Employment Agency,
- all communication between you and the Federal Employment Agency,
- the renewal of your temporary employment licence after the first and all subsequent years,
- the drafting of legally secure temporary employee contracts and
- all international assignments.
Your attorney for the renewal of the staff leasing license
Would you like to extend your permit for temporary employment in Germany for one or more years? Your contact persons for questions on the subject of temporary employment or interim staff/temporary work are
- attorney Dr. Eric Uftring (Certified Specialist for Employment Law) and
- attorney Lars Gerbe.
The best way to reach us is by e-mail (info@winheller.com) or by telephone (+49 69 76 75 77 80).
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Handbook German Employment Law
Specialist for Employment Law Dr. Eric Uftring contributed a detailed chapter on staff leasing agreements. Order here.