In November 2015, the German Federal Ministry of Labor and Social Affairs published a legislative proposal, which seeks to regulate the possibilities of employee-leasing and service contracts. This draft shall become effective as of January 2017.
The legislative proposal essentially limits the possibility of employee-leasing to a maximum duration of 18 months. If the maximum duration of employee-leasing is exceeded, an employment relationship between the temporary worker and the hirer will be deemed to have been established. The temporary worker, however, will be able to dispute such a relationship and continue their employment with the lender. The proposal also seeks to require temporary workers to be granted the same remuneration as employees of the hirer after a period of employment of nine months and for temporary workers not to be engaged in times of strike.
Furthermore, the legislative proposal defines the criteria of an employee in order to provide a clearer distinction between employment and service relationships. The defined criteria corresponds with the main criteria set out in prior rulings of the German Federal Employment Court.