Germany: What requirements do I need to consider if I want to use agency workers (Leiharbeitnehmer, Arbeitnehmerüberlassung) in the startup?

There are particularly three major topics a startup should consider when it wants to use agency workers:

• Make sure the lender has an agency work permit in Germany. Some providers from abroad also offer so-called employer of records services (EoR) in Germany and take the view that they do not need a German agency work permit for this. But beware: this has not yet been legally regulated or decided by the courts. We therefore advise to only choose a provider that complies with German law.
• Observe the maximum assignment period. The same agency worker may only be employed in the same company for a maximum of 18 months.
• Equal pay and equal treatment must be observed. As a rule, agency workers must be treated and paid in the same way as your own comparable employees. A deviating treatment of agency workers is only permissible if a collective bargaining agreement regulation allows so. Agency work is therefore not a tool for reducing labor costs.