Agencies

AüG Licence

Do you require a viable solution for you contingent workforce to work in Germany?

As a recruitment agency your primary focus is not payroll administration and HR management. CPM People are a specialist international payroll and HR administration services company.

If you have a resourcing opportunity in Germany and you intend to hire out or lease personnel to a German organisation, local legislation demands that the leasing company must hold an Arbeitnehmerüberlassung (AüG) licence.

CPM People has held the AüG Licence since 2007. The CPM People team are fully familiar with the many aspects of the legal and compliance issues surrounding this particular solution. Administered by the Bundesagentur für Arbeit in Nürnberg, Germany (Federal Employment Agency) it is a legal requirement that any recruitment agency or other entity ‘hiring out’ personnel to a German organisation hold such a licence.
Consultants may find if they are to undertake an assignment in Germany that the client will insist on an AüG solution. CPM People have extensive experience in arranging commercial agreements to satisfy these particular contingent workforce requirements.

Federal Employment Agency regulations require that the AüG licence holder engages directly with the end user of the labour, therefore CPM People will have a direct contractual relationship with the end user client. The agency simply invoices the end user client directly on a margin-only basis or CPM People will invoice the end user client for the contractor wages and the Recruitment Agency margin, and then forward the margin through to the agency.

It is common knowledge that end user clients in Germany dictate terms to their Recruitment Agencies to ensure compliance with these regulations. Clients that require large contractor numbers such as airlines, automotive firms and manufacturers will enforce a fully employed AüG model. Although this is an added barrier to entry in Germany, this legislation also provides a safety net to the contingent worker because they will be given access to the same employment conditions as permanent and domicile workers.

AS A REGISTERED AüG LICENCE HOLDER, CPM PEOPLE WILL:

  • Manage all payroll and tax deductions
  • Provide professional insurance cover
  • Provide full in country support and advice across payroll, HR and compliance with AüG regulations

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