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.
The renewal must be applied for at least three months before the expiry of the existing permit.
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.
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.
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.
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.
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 offer legal services for 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.
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