.png)
Temporary employment of foreigners
Information from a specialist lawyer on the subject of temporary employment and the Temporary Employment Act (AÜG) for foreigners in Germany.
Share:
whether and when temporary employment of foreigners is possible
how temporary employment can be structured for foreigners
Employer obligations for temporary employment of foreigners
everything about temporary employment within the group
1. Temporary employment and AÜG
2. Temporary employment of foreigners
3. Enable temporary employment from abroad
3.1 Temporary employment only if consent is not required
3.2 German branch recommended
3.3 Employer obligations when hiring foreign nationals
4. Temporary employment within the group
4.1 Group privilege AÜG
4.2 Vander-Elst and AÜG (intra-group rotation systems)
5. FAQ
6. Conclusion Temporary employment under the Residence Act
1. Temporary work and AÜG
Temporary employment is an important tool for companies to respond flexibly to staff shortages . With temporary employment, a personnel service provider (lender) makes its workers temporarily available to another company (user). This form of employment is also known as temporary work or temporary agency work and is subject to strict legal requirements in Germany. Companies that engage in temporary employment require a temporary employment permit in accordance with the Temporary Employment Act (AÜG) . This permit is issued by the Federal Employment Agency and is mandatory if workers are to be leased to third parties. Without this permit, fines and a ban on the lease may be imposed.
2. Temporary employment of foreigners
In terms of immigration law, the temporary employment of foreign workers plays an increasingly important role in the German labor market. Due to the shortage of skilled workers, many companies are dependent on employing qualified workers from abroad. Companies benefit from the temporary employment of foreign specialists if they comply with legal requirements and pursue a long-term personnel strategy, and foreign companies can also profit from the temporary employment of foreign workers as a business model. Unfortunately, the temporary employment of foreign workers is associated with several legal problems . These problems and corresponding solutions are explained below.
3. Enable temporary employment from abroad
3.1 Temporary employment only if consent is not required
The first problem with the temporary employment of foreign nationals is that the Federal Employment Agency is not allowed to grant approval for a residence permit if the foreign national intends to work as a temporary worker (Section 1 Paragraph 1 of the Temporary Employment Act) (see Section 40 Paragraph 1 No. 2 of the Residence Act ). This is intended to prevent wage dumping and protect the German labor market. However, the ban on temporary employment for foreign nationals can be overcome by applying for a residence permit that does not require approval from the Federal Employment Agency . The EU Blue Card is particularly suitable here. The fact that foreign nationals with an EU Blue Card can be hired out is evident from numerous court decisions and administrative instructions, and is also regularly practiced this way.
3.2 German branch recommended
Another problem with the temporary employment of foreign workers is that the temporary employment agency requires a branch in Germany, or rather, from a legal perspective, one is strongly recommended. Therefore, temporary employment permits can only be issued to companies headquartered outside of Europe under more stringent conditions. Therefore, if you plan to provide temporary employment of foreign workers in Germany, you must first establish a German branch.
3.3 Employer obligations when hiring foreign nationals
It should also be noted that particularly strict employee protection regulations apply to the hiring out of foreign workers ( Sections 15 et seq. of the Temporary Employment Act ). Anyone who, as a temporary employment agency or user, uses foreign workers without the necessary authorization can expect severe penalties . This particularly applies to cases in which foreign workers are employed without a valid residence permit, work permit, toleration or residence permit . Both unauthorized hiring out and employment under illegal conditions are punishable by law. Temporary employment agencies that hire out foreign workers to third parties without the necessary authorization are committing an administrative offense and can be punished with a prison sentence of up to three years or a fine. In particularly serious cases, for example if the hiring out is done for commercial purposes or for gross self-interest, prison sentences of between six months and five years may even be imposed.
4. Temporary employment within the group
4.1 Group privilege AÜG
Another legal pitfall in the hiring of foreign workers lies in cross-border intra-group temporary employment . In intra-group temporary employment, one group company makes its own workers available to another group company. The workers remain formally employed by the hiring company but work operationally for the user company.
In principle, temporary employment in Germany is subject to the Temporary Employment Act (AÜG), which requires a permit. However, there is an exception for intra-group temporary employment according to Section 1 Paragraph 3 No. 2 AÜG. This exception only applies if:
The employee was not hired for the purpose of temporary employment.
The transfer is not permanent.
The temporary employee belongs to a company in the same group.
4.2 Vander-Elst and AÜG (intra-group rotation systems)
However, the relevance of the corporate group privilege does not necessarily imply that permanent cross-border intra-group postings are possible without problems. This applies in particular to the practical cases of permanent postings with a Vander Elst visa (e.g., from Poland to Germany). A "Vander Elst" case, and thus no direct application of the freedom to provide services, exists if third-country nationals are posted solely as internal support without providing a specific cross-border service.
An insightful example of the distinction between freedom to provide services and permanent employment in this sense is the ruling of the Higher Administrative Court of Berlin-Brandenburg of November 9, 2018 (OVG 6 B 7.18). The case concerned approximately 50 long-term Ukrainian workers from Poland. These workers were repeatedly posted to Germany over many years on a Vander-Elst visa to manufacture concrete components. The Higher Administrative Court of Berlin-Brandenburg ruled that this did not constitute a temporary service within the meaning of the freedom to provide services, but rather a continuous, established activity or a prohibited intra-group rotation system . This case demonstrates that companies must pay particular attention to the distinction between work contracts, the posting of workers, and the freedom to provide services when it comes to cross-border posting.
5. FAQ
What is temporary employment and what does the Temporary Employment Act (AÜG) regulate?
Temporary employment allows companies to hire personnel from a temporary employment agency (personnel service provider) on a temporary basis. The Temporary Employment Act (AÜG) regulates this form of employment. A valid temporary employment permit from the Federal Employment Agency is mandatory; failure to do so may result in fines or even criminal sanctions.
Can foreigners be released?
In principle, the temporary employment of foreign nationals requires approval and is not permitted under Section 40 of the Residence Act. An exception exists if the residence permit does not require approval—such as the EU Blue Card. In this case, temporary employment can be carried out legally, provided further requirements are met.
Are there exceptions for intra-group transfers?
Yes, under certain conditions, the group privilege (Section 1 (3) No. 2 of the Temporary Employment Act (AÜG)) applies. It allows intra-group transfers without permission – but only if the employee was not hired solely for temporary assignment, the assignment is not permanent, and both companies belong to the same group.
6. Conclusion
Temporary employment – also known as temporary work – is a proven means for companies to respond flexibly to staffing shortages. In Germany, the Temporary Employment Act (AÜG) regulates this form of employment, in which a personnel service provider temporarily assigns its workers to another company. A temporary employment permit from the Federal Employment Agency is mandatory for this assignment; otherwise, fines and criminal prosecution are threatened. The situation becomes particularly complex when it comes to the temporary employment of foreign skilled workers , which is becoming increasingly relevant for German companies due to the shortage of skilled workers.
You might also be interested in
List of Sources (Paywall)
[1] Häberle in Erbs/Kohlhaas, AÜG, §§ 1 ff., 255th edition January 2025