The Labour Hire Agreement is essential for businesses operating in Germany that require flexible workforce solutions through temporary staffing arrangements. This document establishes the legal and operational framework between a licensed labor hire provider and a hiring company, ensuring compliance with the German Labor Leasing Act (Arbeitnehmerüberlassungsgesetz - AÜG) and related employment legislation. It addresses critical aspects such as licensing requirements, maximum hire periods, equal treatment principles, and workplace safety obligations. The agreement is particularly relevant in the context of Germany's highly regulated labor market, where temporary staffing arrangements must meet strict legal requirements and protect workers' rights. It includes comprehensive provisions for worker deployment, supervision, remuneration, and risk management, making it suitable for both short-term staff augmentation and longer-term workforce planning needs.
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1. Parties: Identification of the Labor Hire Provider (Verleiher) and the Hirer Company (Entleiher), including full legal names, registration details, and addresses
2. Background: Context of the agreement, confirmation of the Labor Hire Provider's AÃœG license, and general purpose of the arrangement
3. Definitions: Key terms used throughout the agreement, including 'Temporary Workers', 'Assignment', 'Hire Fees', etc.
4. Scope of Services: Details of temporary staffing services to be provided, including types of positions and qualification requirements
5. Ordering Process: Procedure for requesting temporary workers, response times, and confirmation process
6. Terms of Assignment: Duration limits, notice periods, and conditions for extension or termination of individual assignments
7. Duties of the Labor Hire Provider: Obligations including worker screening, qualification verification, and statutory compliance
8. Duties of the Hirer: Responsibilities regarding workplace safety, supervision, and integration of temporary workers
9. Equal Treatment Principles: Compliance with equal pay (Equal Pay) and equal treatment requirements under AÃœG
10. Fees and Payment Terms: Hire rates, calculation methods, invoicing periods, and payment terms
11. Workplace Safety and Risk Assessment: Safety responsibilities, risk assessment procedures, and protective equipment provisions
12. Confidentiality and Data Protection: GDPR compliance, handling of confidential information, and data security measures
13. Liability and Insurance: Allocation of risks, insurance requirements, and indemnification provisions
14. Term and Termination: Duration of the framework agreement, termination rights, and notice requirements
15. General Provisions: Governing law, jurisdiction, severability, and entire agreement clauses
1. Works Council Cooperation: Required when the hirer has a works council, detailing consultation and approval procedures
2. Specialized Qualifications: Include when hiring workers for positions requiring specific certifications or qualifications
3. International Assignments: Required for cross-border temporary work arrangements within the EU
4. Industry-Specific Requirements: Include for regulated industries with special compliance requirements
5. Intellectual Property Rights: Include when temporary workers may create IP during their assignments
6. Non-Solicitation: Optional restrictions on hiring temporary workers directly
7. Performance Monitoring: Include when specific performance metrics or reporting is required
8. Training Requirements: Include when specific training must be provided by either party
1. Schedule 1 - Standard Hire Rates: Detailed fee structure including standard rates, overtime rates, and holiday premiums
2. Schedule 2 - Job Categories and Qualifications: List of typical positions and required qualifications for each category
3. Schedule 3 - Standard Operating Procedures: Detailed processes for worker requests, replacements, and issue resolution
4. Schedule 4 - Health and Safety Requirements: Specific safety procedures and requirements for different work areas
5. Schedule 5 - Required Forms: Standard forms for worker requests, timesheets, and performance evaluation
6. Appendix A - AÃœG License: Copy of the Labor Hire Provider's valid AÃœG license
7. Appendix B - Insurance Certificates: Copies of required insurance policies and coverage details
8. Appendix C - Data Processing Agreement: GDPR-compliant data processing agreement between the parties
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