Employee leasing license

The “employee leasing license” is an official authorization issued in Germany to companies that wish to supply temporary workers to other businesses. This regulation falls under the German Temporary Employment Act (AÜG), which governs the leasing of employees. The license is issued by the Federal Employment Agency.

Important aspects of the license:

1. Who needs a license?
Companies that want to place employees as temporary workers in other businesses require this license. This applies, for example, to staffing and recruitment agencies.

2. Why is the license required?
The license ensures that the rights of leased employees are protected. This includes issues such as equal pay and equivalent working conditions (Equal Pay / Equal Treatment).

3. Requirements for obtaining the license:

• The company must be financially stable.
• There must be no prior violations of labor law.
• The company must comply with all legal regulations related to employee leasing.

4. Consequences of operating without a license:
Companies that lease employees without authorization risk high fines and legal penalties. In addition, contracts between staffing agencies and client companies may be declared invalid.