whitepapers, case studies and more

2 Whether these professionals are brought in as independent contractors, or as seasonal, temporary or part-time workers, the relationship between the client and contingent talent is flexible. This arrangement gives both parties a degree of freedom they would not have under permanent hiring circumstances. what is the German Temporary Staffing Act? Germany has a long history of creating rigorous labor regulations and employment practices in response to all staffing, including alternative temporary staffing and fixed-term engagements. To address the ever-increasing reliance on contingent talent, the German Federal Government set to work on its mission for "shaping Germany's future" in November 2013. The governmental coalition began developing what would become the new German Temporary Staffing Act. A few of the key concepts • 18-month maximum hire term The Act features the introduction of an allowed 18-month maximum consecutive engagement with a single flexworker. Previous engagements for a single flexworker are calculated into the total 18-month time frame. Placement periods accrued before the commencement of the Act will not be included in the calculation of the maximum hire term for the single flexworker. The temporary agency may, however, supply a different flexworker to the same hiring company, starting a new 18-month term for that specific flexworker. If a temporary staffing agency does not maintain compliance on this point, it faces a fine of up to € 30,000 and the possible revocation of its staff placement license or the refusal of its extension. For the hiring company non-observance can result in an employment relationship with the flexworker. Insofar as the flexworker does not object within one month, the contract between the customer and the flexworker is considered fictitious from the first day of exceeding the period. • Equal pay after nine months The Act requires that temporary employees must not receive pay that is less than that of a comparable full-time and permanent employee of the hiring company after a consecutive nine-month placement. Engagements with the hiring company prior to the commencement of the law are not applicable. Temporary agencies that do not comply with the equal pay law may face fines of up to € 500,000 and the possible revocation of their staff placement license or the refusal of its extension. • Mandatory classification The contract between the temporary employment agency and the hiring company has to be explicitly classified as a staff placement contract whereby the flexworker has to be named in the contract. If the hiring company does not fulfill this duty a fictitious employment relationship between the hiring company and the flexworker is assumed. Furthermore non-compliance with the mandatory classification can result in fines of up to € 30,000 per case for the hiring company and the temporary employment agency. Additionally, prior to every placement the flexworker needs to be informed that he or she will sign on as a flexworker to prevent covert staff placement. In case of non-information the temporary employment agency might also face an additional € 1,000 fine per offense. • The strike clause The strike clause prevents temporary staff from being deployed to fill in for permanent workers on strike. Temporary agencies may face an administrative fine of up to € 500,000 for such an offense. "This law aims at sharpening the function of staff placement as a tool for the limited coverage of staff needs, preventing the misuse of temporary employment, strengthening the position of flexworkers and facilitating the work of the works councils in the hirer-out companies." that government representatives kept in mind while designing the Act included further developing staff placement and preventing the misuse of contracts for work and labor. The resolution was passed by the cabinet on June 1, 2016, along with a statement of intent: On October 28, 2016, the German Parliament adopted the draft law for reform of the German Act on Temporary Agency Work. This law officially came into force on April 1, 2017, and features the following changes that apply to temporary employment agencies and their customers, i.e. the companies hiring temporary staff:

• Cover