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Germany – Recruitment firm files for bankruptcy

16 October 2013

Liquidity problems have forced temporary recruitment firm Alpha Personalmanagement to initiate bankruptcy proceedings, reports Southwest Press. Bernd Depping, a lawyer from Essen, was been appointed as the administrator.

Details regarding Alpha’s insolvency were not released, with Mr Depping advising that investigations were on-going. Southwest Press, however, reports that the company had difficulty paying salaries to its employees in August. Through the use of an insolvency fund, the administrators have been able to guarantee employees’ wages for the next three months.

A spokesman for Mr Depping, Thomas Schulz, advised that what will happen to Alpha is the subject of intensive talks between creditors and customers. He added, however, that there was an interest in keeping the company running.

Based in Ulm, Alpha currently employees 60 people; 45 of whom currently work for crane manufacturer Liebherr Ehingen. In more positive news, Liebherr Ehingen had already announced that they intend to offer permanent contracts to 160 temporary workers, many of whom are currently employed via Alpha Personalmanagement.

This news comes after months of positivity in Germany about the temporary employment industry. Traditionally wary of temporary employment, German politicians and organisations have spoken of the benefits of temporary work, saying that it is a necessary element in the economy.

Recruitment firm Orizon GmbH recently published a study highlighting German people’s misconceptions about the size of the industry. The report also sought to address misconceptions about salary levels and collective bargaining agreements.   


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