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Randstad Germany has signed up to the Department of Payment Security (IZS) which monitors the payment of social security contributions in the temporary staffing sector. This will allow client companies to check whether all social contributions have been to paid health insurers.
It will also give clients increased protection from subsidiary liability. The information is available for free and can be viewed online. The IZS said that staffing buyers, i.e. those firms using temporary staffing solutions, will benefit from the service.
If a staffing firm fails to make the necessary payments, the hiring company may be liable to pay any outstanding payments regarding social contributions. This is known as subsidiary liability, according to the Code of Social Law (§ 28e Abs. 2 SGB IV).
“Randstad wants to protect its clients as best as possible from subsidiary liability. It is a way to create a maximum level of transparency,” said a spokesperson from Randstad Germany. The data will be updated on a monthly basis and can be viewed here (in German).