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Labor Supply Contract Template for Germany

A German Labor Supply Contract (Arbeitnehmerüberlassungsvertrag) is a comprehensive agreement governed by the German Labor Leasing Act (AÜG) that establishes the terms and conditions for temporary staffing arrangements between a licensed temporary employment agency and a client company. The document outlines the rights, obligations, and responsibilities of both parties, including working conditions, remuneration, duration of assignments, and compliance requirements under German labor law. It incorporates essential provisions for worker protection, equal treatment, and data protection in accordance with German and EU regulations.

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What is a Labor Supply Contract?

The Labor Supply Contract serves as the foundational document for temporary staffing arrangements in Germany, regulated primarily under the Arbeitnehmerüberlassungsgesetz (AÜG). This agreement is essential when companies need flexible workforce solutions while ensuring compliance with strict German labor regulations. The contract addresses the triangular relationship between the temporary employment agency, client company, and temporary workers, detailing assignment terms, workplace integration, equal treatment principles, and maximum assignment durations. It includes specific provisions required by German law, such as the agency's licensing details, worker protection measures, and clear delineation of responsibilities between parties. The document is particularly crucial given recent legislative changes strengthening temporary workers' rights and increasing employers' obligations.

What sections should be included in a Labor Supply Contract?

1. Parties: Identification of the temporary employment agency (with license details) and the client company

2. Background: Context of the agreement and general purpose of the temporary staffing arrangement

3. Definitions: Key terms used throughout the agreement, including 'Temporary Workers', 'Services', 'Assignment Period', etc.

4. Scope of Services: Details of the temporary staffing services to be provided, including the nature of work and qualifications required

5. Duration and Termination: Term of the agreement, notice periods, and termination conditions, including compliance with AÜG maximum duration limits

6. Rights and Obligations of the Agency: Agency's responsibilities including worker selection, verification of qualifications, and maintaining necessary licenses

7. Rights and Obligations of the Client: Client's duties regarding workplace safety, supervision, and integration of temporary workers

8. Working Hours and Leave: Specification of working time arrangements and holiday entitlements in compliance with ArbZG

9. Remuneration and Invoicing: Fee structure, payment terms, and invoicing procedures

10. Equal Treatment Provisions: Ensuring compliance with equal pay and treatment principles under AÜG

11. Workplace Safety and Insurance: Obligations regarding workplace safety, accident insurance, and health protection

12. Data Protection: GDPR compliance measures for handling personal data

13. Confidentiality: Protection of business secrets and confidential information

14. Liability and Indemnification: Allocation of risks and responsibilities between parties

15. Final Provisions: Governing law, jurisdiction, severability, and entire agreement clauses

What sections are optional to include in a Labor Supply Contract?

1. Non-Solicitation: Restrictions on hiring temporary workers directly, used when the agency wants to protect its workforce

2. Compliance with Collective Agreements: Required when specific industry collective agreements apply to the temporary workers

3. Performance Monitoring: Procedures for evaluating temporary worker performance, used for longer-term assignments

4. Training Provisions: Include when specific training requirements exist or when cost allocation for training needs to be addressed

5. Special Industry Requirements: Additional provisions for regulated industries (e.g., financial services, healthcare)

6. Strike Clause: Specific provisions regarding temporary work during industrial actions

7. Intellectual Property Rights: Required when temporary workers may create IP during their assignment

8. International Assignments: Additional provisions for cross-border temporary work arrangements

What schedules should be included in a Labor Supply Contract?

1. Schedule 1 - Fee Schedule: Detailed breakdown of hourly rates, overtime rates, and additional charges

2. Schedule 2 - Worker Specifications: Detailed requirements for temporary workers including qualifications, experience, and specific skills

3. Schedule 3 - Health and Safety Requirements: Specific workplace safety requirements and procedures

4. Schedule 4 - Data Processing Agreement: Detailed GDPR-compliant data processing terms

5. Appendix A - Standard Operating Procedures: Client-specific procedures and protocols for temporary workers

6. Appendix B - Required Documentation: List of required documents for temporary workers (qualifications, permits, etc.)

7. Appendix C - Assignment Confirmation Template: Standard form for confirming individual worker assignments

8. Appendix D - Time Sheet Template: Standard form for recording working hours and attendance

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Germany

Publisher

Ƶ

Document Type

Supply Agreement

Cost

Free to use

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