Employee Leasing Agreement Template for Germany

A comprehensive legal agreement governed by German law that establishes the terms and conditions for temporary employee leasing between a licensed personnel leasing company (Verleiher) and a receiving company (Entleiher). The agreement ensures compliance with the German Act on Temporary Employment Businesses (Arbeitnehmerüberlassungsgesetz - AÜG) and related labor laws, detailing responsibilities, working conditions, payment terms, and regulatory requirements. It includes provisions for employee rights, data protection, workplace safety, and equal treatment in accordance with German legislation.

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What is a Employee Leasing Agreement?

The Employee Leasing Agreement (Arbeitnehmerüberlassungsvertrag) is essential for German businesses engaging in temporary workforce solutions. This document is required whenever a licensed personnel leasing company provides temporary workers to a receiving company under German law. It must comply with the Arbeitnehmerüberlassungsgesetz (AÜG) and related regulations, which mandate specific provisions for worker protection, equal treatment, and maximum lending periods. The agreement covers crucial aspects such as workplace integration, supervision responsibilities, liability allocation, and data protection measures. It's particularly important as non-compliance with German temporary employment regulations can result in significant penalties and the deemed direct employment of temporary workers by the receiving company.

What sections should be included in a Employee Leasing Agreement?

1. Parties: Identification of the Personnel Leasing Company (Verleiher) and the Receiving Company (Entleiher), including full legal names, addresses, and registration details

2. Background: Context of the agreement, confirmation of the Personnel Leasing Company's AÜG license, and general purpose of the arrangement

3. Definitions: Key terms used throughout the agreement, including 'Leased Employees', 'Assignment Period', 'Workplace', etc.

4. Scope of Services: Details of employee leasing services, including qualifications of leased employees and nature of work to be performed

5. Term and Termination: Duration of the agreement, notice periods, and conditions for termination, including compliance with AÜG maximum rental periods

6. Rights and Obligations of the Personnel Leasing Company: Responsibilities including employee selection, maintaining licenses, payroll administration, and legal compliance

7. Rights and Obligations of the Receiving Company: Workplace integration, supervision, safety measures, and cooperation requirements

8. Employee Rights and Working Conditions: Equal treatment provisions, working hours, holiday entitlements, and access to collective facilities

9. Fees and Payment Terms: Billing rates, payment schedule, and any surcharges or additional costs

10. Liability and Insurance: Distribution of risks, insurance requirements, and indemnification provisions

11. Data Protection: GDPR compliance measures and data handling procedures between parties

12. Confidentiality: Protection of business secrets and confidential information

13. Final Provisions: Governing law, jurisdiction, written form requirements, and severability clause

What sections are optional to include in a Employee Leasing Agreement?

1. Works Council Involvement: Required when works councils exist in either company, detailing consultation procedures and agreements

2. International Assignments: Needed for cross-border leasing arrangements, addressing applicable international laws and special requirements

3. Industry-Specific Regulations: Required for regulated industries like healthcare or financial services, including specific compliance measures

4. Training and Development: Optional section for arrangements involving specific training requirements or development programs

5. Non-Solicitation: Optional provisions preventing direct hiring of leased employees, subject to AÜG restrictions

6. Force Majeure: Optional clause addressing unforeseeable circumstances affecting the leasing arrangement

7. Succession Planning: Optional provisions for long-term assignments requiring backup or replacement planning

What schedules should be included in a Employee Leasing Agreement?

1. Schedule 1: Employee Specifications: Detailed requirements for leased employees, including qualifications, experience, and specific skills

2. Schedule 2: Fee Schedule: Detailed breakdown of hourly rates, overtime rates, holiday premiums, and other charges

3. Schedule 3: Standard Operating Procedures: Processes for requesting employees, timesheet approval, and issue resolution

4. Schedule 4: Health and Safety Requirements: Specific workplace safety measures and responsibilities

5. Schedule 5: Data Processing Agreement: Detailed GDPR-compliant data processing terms and procedures

6. Appendix A: Required Certifications: Copies of AÜG license and other required certifications

7. Appendix B: Insurance Certificates: Proof of required insurance coverage

8. Appendix C: Works Council Agreements: If applicable, relevant works council agreements or protocols

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use

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