In recent years, Germany has seen a fundamental shift in the workforce. The traditional model of engaging full-time employees has moved towards a mix of employees and flexible workers, including contingent workers, independent contractors, consultants, freelancers and more.
Until now, employment laws in Germany have lacked clarity and consistency, and have failed to provide a clear framework for organizations or staffing agencies utilizing and supplying external workers. This will change on 1st April 2017, when the long-awaited Gesetz zur Änderung des Arbeitnehmerüberlassungsgesetzes und anderer Gesetze takes effect.
The new regulation not only change the rules for procuring temporary workers, but also impact services and Statement of Work (SOW)-based projects. Non-compliance can have serious consequences – from flexible workers considered as full-time employees to financial penalties to board members’ personal liability.
What are the key features of this new law? How will it shape the way German companies and global organizations doing business in Germany procure and secure their flexible workforce?
A whitepaper from analysts Lünendonk & Hossenfelder GmbH in collaboration with SAP Fieldglass answers these questions and outlines key considerations for organizations and service providers.
The whitepaper explores key aspects of the new law including:
• Equal pay after nine months
• Duration of employment (Höchstüberlassungsdauer) of 18 months
• Introduction of a strike clause
• Mandatory identification and obligation to notify
• Introduction of § 611a BGB
Download the report now, available in German and English, and find out the essential steps to take to remain compliant moving forward.