Glossary
Here you will find an overview and explanation of important terms relating to temporary employment and temporary work.
Overview
Temporary employment
Temporary employment is a special form of personnel leasing in which employees are leased from a lender to a borrower. The legal framework is regulated in the Temporary Employment Act (AÜG). In the skilled trades sector, this practice enables companies to react flexibly to changing order situations and to bridge staff shortages. The temporary worker remains employed by the lender but works temporarily for the hirer. This flexibility helps trade businesses to complete their projects on time and to a high standard.
AÜG (Temporary Employment Act)
The Temporary Employment Act (AÜG) regulates the legal framework for the temporary employment of workers in Germany. It is intended to ensure the protection of temporary workers and prevent abuse. In the skilled trades sector, the AÜG stipulates the conditions under which employees may be leased, what rights they have and what obligations the hirer and borrower must fulfill. The law ensures transparency and fairness in personnel leasing.
Protection under labor law
The Temporary Employment Act (AÜG) regulates the legal framework for the temporary employment of workers in Germany. It is intended to ensure the protection of temporary workers and prevent abuse. In the skilled trades sector, the AÜG stipulates the conditions under which employees may be leased, what rights they have and what obligations the hirer and borrower must fulfill. The law ensures transparency and fairness in personnel leasing.
Working time account
A working time account records the hours worked by an employee and enables flexible working time arrangements. Overtime can be accumulated and later compensated in the form of time off or additional salary. In the skilled trades, a working time account offers the advantage that seasonal fluctuations can be better cushioned and both employers and employees can react more flexibly to order peaks.
Industry surcharge
Industry surcharges are collectively agreed supplements to the basic wage of temporary workers in certain industries. They are intended to ensure that temporary workers receive a salary in line with industry standards after a certain period of employment. In the skilled trades sector, industry surcharges help to ensure fair wages and increase the attractiveness of temporary work for qualified specialists.
Familiarization period
The induction period is the phase in which a new employee is introduced to their tasks and familiarizes themselves with the processes in the hirer’s company. This time can vary depending on the complexity of the tasks and is crucial for the integration of the employee into the team and for the quality of the work performed. Thorough training is particularly important in the skilled trades to ensure that all safety standards are met.
Location
The place of assignment is the place where the temporary worker carries out his work. In the skilled trades, this can be a construction site or a workshop and often requires flexibility from employees in terms of changing locations. A clearly defined location in the assignment contract helps both parties to avoid misunderstandings and overcome logistical challenges.
Borrower
The hirer is the company that requests temporary workers from a temporary employment agency and deploys them in its company. In the skilled trades, this can be a construction company or a specialized craft business that temporarily needs additional workers. The hirer benefits from the flexibility and rapid availability of qualified employees without long-term commitments. At the same time, he is responsible for occupational safety and compliance with legal regulations at the place of work.
Equal Pay
Equal pay means “equal pay for equal work”. In the temporary employment sector, this means that temporary workers must receive the same wage as comparable permanent employees of the hirer after a certain period of employment in the hirer’s company. This regulation is intended to prevent wage dumping and ensure fair working conditions. Equal pay helps to ensure that temporary workers are paid appropriately and do not feel disadvantaged.
Placement of skilled workers
Skilled worker placement is a service in which specialized agencies place qualified tradespeople with companies. In contrast to personnel leasing, the specialists placed are employed directly by the company seeking them. This offers advantages for both sides: Companies receive precisely qualified personnel, while skilled workers are given long-term employment prospects. The placement of skilled workers is particularly valuable in the skilled trades, as it helps to combat the shortage of skilled workers and ensure that projects are staffed with well-trained employees.
Flexibility premium
A flexibility bonus is an additional payment for temporary workers who are particularly flexible in terms of location or working hours and can react to changing requirements at short notice. In the skilled trades, this bonus can create incentives to motivate qualified skilled workers and increase their willingness to take on short-term assignments.
Notice period
The notice period is the period between the termination of the employment relationship and its actual end. It is intended to give both parties sufficient time to prepare for the termination of the contract and, if necessary, to find a replacement or look for new career prospects.
Temporary workers
Temporary workers are employees who are loaned out by a temporary employment agency to various employment agencies. In the skilled trades sector, temporary workers can be deployed at short notice to cover order peaks or to provide special skills. They remain employed by the hirer and enjoy the latter’s protection under labor law. For craft businesses, this means flexible personnel planning without long-term obligations.
Minimum wage
The minimum wage is the lowest hourly wage set by law that an employer must pay its employees. The minimum wage is also the lower limit for the payment of temporary workers in the skilled trades. This regulation ensures that all employees are paid fairly, regardless of their form of employment.
Personnel leasing
Personnel leasing, also known as employee leasing, is a model in which a company (hirer) temporarily lends its employees to another company (borrower). In the skilled trades sector, personnel leasing enables hirers to react flexibly to order peaks or staff shortages. The hirer remains the legal employer and takes on administrative tasks such as payroll accounting and social security contributions.
Qualification measures
Qualification measures are further or advanced training courses to improve professional skills.
Social security obligation
Compulsory social insurance means contributions to health, pension, long-term care and unemployment insurance
Collective agreement
A collective agreement is an agreement between employers’ associations and trade unions on working conditions
Transfer agreement
A temporary employment contract regulates the conditions of the temporary employment between the lender and the hirer
Lender
The hirer is the temporary employment agency or personnel service provider that hires out temporary workers
