Germany’s reformed Labour Leasing Act (Arbeitnehmerüberlassungsgesetz AÜG) came into effect on Saturday, 1 April 2017.

The reformed law imposes restrictions to assignment lengths, works contracts and managed service provision arrangements. The new regulations include an equal pay claim (temps will receive the same pay as regular workers) after 9 months and the maximum allowance period of 18 months.

Furthermore, there are changes in the requirements for labelling and ‘concretisation’ as written contracts between temporary workers and customers must be expressly referred to as a "workers' lease agreement" before the start of the transfer.

“With the introduction of the amendments to the law on the transfer of workers, which are effective from 1 April, the flexibility of the labour market is severely restricted,” Thomas Hetz, Chief Executive of the Federal Employers' Association of Personnel Service Providers (BAP), said. “These new restrictions are counterproductive not only for personnel service providers and customer companies, but also for temporary workers in particular. Nevertheless, temporary work will have to adapt to changing conditions, as the industry has repeatedly demonstrated its flexibility."