Arbeitnehmerüberlassung (temporary agency work) exists where a lender (Verleiher) provides its own employees to a hirer (Entleiher) who integrates them into its business (AÜG). The lender needs a licence (§ 1 AÜG). A maximum assignment period of 18 months applies, together with a right to equal pay at the latest after 9 months (§ 8 AÜG). Hidden hire-out can create a deemed employment relationship with the hirer (§ 10 AÜG).
At a glance
- Triangular relationship: the employment contract is between lender and agency worker, while the work is done at the hirer
- The lender needs a licence from the Federal Employment Agency (§ 1 AÜG)
- Maximum assignment period of generally 18 consecutive months at the same hirer, variable by collective agreement
- Equal pay and equal treatment: the same essential working conditions as core staff, at the latest after 9 months (§ 8 AÜG)
- Labelling and specification duty: the assignment must be named as such in the contract and the person specified
- Where a licence is missing or the assignment is hidden, an employment relationship with the hirer is deemed to arise
Time limits and equal pay in detail
- Maximum assignment period: 18 consecutive months at the same hirer. A collective agreement of the user industry, or a works agreement based on it, can set a different duration. Once exceeded, a break of more than three months is generally required before the worker can be assigned there again.
- Equal pay: at the latest after 9 months of uninterrupted assignment, the agency worker is entitled to the same pay as comparable core staff. A sector supplement agreement with step-by-step alignment can extend the period to up to 15 months.
FAQ
How does this differ from a service contract or freelancer set-up?
In temporary agency work the worker is integrated into the hirer's business and instructed by it. Under a service contract (Werkvertrag) a provider owes an independent result and instructs its own staff. Where a service contract is only a label but workers are in fact hired out, this is hidden hire-out (verdeckte Überlassung). See also Freelancer.
What happens with hidden or unlicensed hire-out?
If the licence is missing or the assignment is not openly labelled as such, the contract between lender and hirer is void and an employment relationship between the worker and the hirer is deemed to arise by law. Fines may also apply.
What do the labelling and specification duties mean?
Lender and hirer must expressly designate the arrangement as temporary agency work in the contract and specify the assigned person before it begins. This is intended to rule out using a "stock" licence to cover hidden arrangements.
Does equal pay apply from day one?
Not necessarily. A collective agreement for the temporary staffing sector can deviate from equal pay in the first months. The entitlement applies at the latest after 9 months, or at the latest after 15 months where a sector supplement agreement gradually brings pay into line (§ 8 AÜG).
Last updated: August 2026
This article provides general information and is not a substitute for legal advice in individual cases.
