Bundestag, the lower house of the German Government, has approved amendments to the Committee on Labour and Social Affairs’ Employment Act (AUG) on Friday, which covers regulation of temporary employment and work contracts. The Committee on Labour and Social Affairs has stated that the proposed changes to the Germany Employee Leasing Act will come into effect on 1 April 2017 as opposed to the previous date of 1 January 2017.

The draft stipulates that temporary workers may only be used for 18 months at a client company in the future (unless a collective agreement governs a longer duration of use). They should also receive the same wages as the permanent staff after nine months.

Karl Schiewerling of the political party CDU commented: "A few bad apples defile the image of the temporary staffing industry. With the new law, we now want coverage to ensure fair and regulated competition in the labour market. This includes the introduction of a maximum loan period of 18 months and equal pay after 9 months. We will prevent abuse and strengthen the industry. This is important, because temporary work is indispensable as a flexible instrument for the labour market. It provides companies the ability to respond flexibly and to do business accordingly. It is also attractive to employees as low-skilled workers can get access to entry jobs.”

Albert Stegemann also of the CDU commented: “We are pleased that we were able to agree on a transitional period until 1 April 2017. This gives workers and companies concerned and the social partners time to prepare for the coming changes.”

The legislation still needs to be formally passed by the Bundesrat, the upper house. This is scheduled for the 4 November 2016.