The German Commission of Labour and Social Affairs is to host a hearing next week on the difference between temporary employment and contract work. The association of temporary employment agencies, iGZ, will also be present in the public hearing, which comes as a response to requests from the two opposition parties, Die Linke und Bündnis 90/Die Grünen.

Die Linke (‘The Left’) is the fourth largest political party in Germany and has recently called for the abolition of temporary employment. It also wants to stop alleged misuse and wage dumping within contract labour.  The party claims that contract work is increasingly used as an alternative by companies to replace temporary labour. In the request, the political organisation also claims that contract work has lower standards than temporary employment  as ‘sham contracts’ are widespread. After having recently failed to forbid temporary labour, the party now demands a law to avert the misuse of contract labour. It also demands equal pay for equal work for contract employees. 

But the other political party, Die Grünen (‘The Greens’), demands a clear legal differentiation between temporary and contract labour. They claim that contract labour frequently takes the hidden shape of temporary employment and hence clear regulations need to be set out to differentiate the two. The Greens won just under 11% of the vote in the last general election but polls suggest it is gaining in popularity and has a strong position in some local states.

Earlier this year the iGZ has responded to the accusations of wage dumping within contract labour by excluding contract workers from its negotiated wage rate. The iGZ said this is a “clear signal against wage dumping.”