FAQ on Temporary Work (Temporary Employee Placement)

1) What is temporary work and who is the employer?

In Germany, temporary work (also referred to as temporary employment, temporary employee placement or personnel secondment) means that the employee enters into an employment relationship with a personnel service provider, i.e. signs an employment contract with the service provider. So, the HR service provider is the actual employer and is responsible for getting the employee into work at one of the customer companies. Usually the clients’ staff requirement is temporary, the assignments can be for a short or longer term, depending on the industry, field of activity and the customer. Thus, the companies react to the constantly changing labour market.

With Orizon, you have a permanent job as temporary worker. And we bear all typical employer obligations: you receive an attractive salary, many social benefits and are subject to all statutory provisions, such as the protection against dismissal. Thus, you have the same rights and obligations as any other employee.

If an assignment is terminated, the HR service provider sees to organise a new assignment or the client company decides to employ you permanently. In the latter case, your contract with the HR service provider is terminated and you enter into a new employment contract with the customer company. Your letter of reference is written when you leave the HR service provider with the help of the customer company. As with every other employer, you, of course, have the possibility to get an interim letter of reference at any time.

2) When does temporary work make sense?

Temporary work is, for example, reasonable for your occupational orientation, your re-entry into your profession or when you want to extend your professional qualification. In any case, we offer you varied jobs with interesting enterprises and in exciting sectors. Thus, you can gain experience in many differing fields. You want to use temporary work as a stepping stone? Here, Orizon is the address as well, because in many cases, the temporary assignment results in a permanent employment at our clients.

Your advantages at a glance:

• attractive salary defined in the collective agreement
• social and special benefits (see Orizon PlusPoints)
• permanent contract
• promising opportunities for a permanent employment
• exciting, varied assignments
• possibility for vocational orientation
• opportunity for re-entry into the job.

3) Where is temporary work used?

In general, temporary work is possible in almost every sector and is not limited to the production industry anymore. However, companies in the metal and electronics industries still deploy the highest share of temporary employees. According to the Statistics of the German Federal Employment Agency (from January 2017), the tasks carried out are distributed as follows:

• approx. 30 % in traffic, logistics and cleaning
• 28 % in the metal and electronics sector
• 13 % in other manufacturing jobs or agriculture
• 8 % in the fields of accounting, administration, justice as well as health, education, social affairs, culture
• 7 % in the field of architecture, construction, natural sciences
• 5 % in commercial services, sales, trade, tourism

4) What wages do temporary workers get and who pays them?

Orizon is a member of iGZ (German Association of Temporary Work Agencies [Interessenverband Deutscher Zeitarbeitsunternehmen e.V.]) and applies the collective agreement. This agreement specifies nine differing salary groups. The minimum wage in temporary work, i.e. the lowest salary group, currently is 9.23 euros (8.91 euros in the new federal states) for unskilled workers. If you have a completed apprenticeship, are a master craftswoman/craftsman or technician, or even have a university degree, the salary can be considerably higher. Social security of course protects against unemployment, illness and on retirement.

In many sectors, there are additional surcharges, so-called industry surcharges.

Currently, there are surcharges in, for example the following sectors:

• metal and electronic industry
• chemical industry
• rubber industry
• textiles and the clothing industry
• rail transport
• printing industry
• wood, paper, cardboard and plastics processing industries
• rock salt mining.

The German Temporary Employment Act (AÜG) governs the placement of temporary workers, insofar as it happens in the scope of an economic activity. From 1 April 2017, the act specifies a maximum duration of a temporary employment of 18 months. After this period, temporary employees need to be employed permanently or exchanged by another employee. For the time being, this maximum duration of temporary employment has no influence on existing assignments. These are not considered in the calculation of the maximum duration. After nine months, temporary workers are entitled to the same wage as the remaining permanent workforce, when working for the same borrowing company.

You receive your salary directly from your employer, i.e. the HR service provider and not from the company you are currently working with. By the way: this also applies for bank holidays (when they are working days). Here, the so-called Continuation of Remuneration Act applies.

5) How long is an assignment at a client company?

The assignment duration can vary significantly, depending on the respective case. This means that some assignments can comprise some days only, others several months. The new German Temporary Employment Act (AÜG) stipulates that the maximum duration of an assignment in the same borrowing company is 18 months. After this period, the temporary employee needs to leave the client company or enter into a permanent employment there. However, based on mutual agreements, trade unions and employers can make exceptions. For the time being, this maximum duration of temporary employment has no influence on existing assignments.

6) What happens when there is no work temporarily?

If the rare case occurs that there is no new assignment for an employee for a brief time, she/he will of course continue to receive their contractually agreed salary. While the HR service provider looks for a new borrowing company, the employee usually stays at home and is on standby. As soon as a new assignment is found, the employee can start working again from one day to the next.

7) Who pays my salary when I am ill?

When you fall ill, you need to immediately inform both the HR service provider and the borrowing company on the first day of illness and submit a certificate of incapacity. As every other employee who is subject to social security contributions, you will of course receive continued payment of wages in the event of illness. Here, the provisions of the Continuation of Remuneration Act (Art. 2 and 3) apply.

8) Is there a probation time? If yes, for how long?

At Orizon, the contractually agreed probation time is six months.

9) Can I easily be laid off during temporary work?

The assignment of the temporary worker can be terminated by the client company. However, the employment relationship with the HR service provider remains in place for the time being and the payment of your salary/wage is continued. Now, it is our task to find a new temporary assignment for you and take care of your career. Should the temporary employment agency lay you off, you are subject to protection against dismissal and periods of notice.

During the probationary period, these are

• two days within the first four weeks,
• one week within the first three months, and
• two weeks in the fourth until sixth months.

After the probationary period, these are

• four weeks within the first two years (to the fifteenth or to the end of the calendar month),
• one month after two years (to the end of the calendar month),
• two months after five years (to the end of the calendar month),
• three months after eight years (to the end of the calendar month).

The general protection against dismissal is governed in the Dismissal Protection Act (KSchG) and also applies to temporary employees, whose employment relationship has lasted longer than six months.

10) What about occupational safety during temporary work?

As every other employee, temporary employees are subject to the same occupational health and safety rules. This is something the HR service provider needs to make sure. This for example includes to provide for the necessary accident prevention precautions and inform about the health and safety risks that temporary workers are exposed to at the workplace. This is reviewed within the scope of the Occupational Safety Management certification (AMS).

11) What are the chances to be employed permanently?

Many temporary workers are also employed permanently during or after their assignment. This is also referred to as the “adhesive effect”. The Orizon labour market study 2015 revealed that this was the case with around 34 % of the interviewed employees with experience in temporary work. Another 36 % found a permanent employment with another employer directly after their temporary employment relationship.

12) Temp to perm: temporary work with subsequent permanent placement

You would like to have a permanent employment with one of our customers? No problem. As HR service provider, we always try the best for you as applicant and to meet your desires. Here, the ideal solution is our temp-to-perm service:

You get to know the customer company as well as its processes and structures as employee – without commitment and without time limitation. As soon as both sides find out that the mutual expectations are met, the employer can employ you permanently.

In case you decide against a permanent employment: no problem at all. Then, we see if we can find another assignment for you.

Are you interested? Then, have a look into our job market and see if there is a suitable job for you. Of course, we also look forward to your unsolicited application.