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German AUG License
Since 2008, Access Financial has held an AUG License which authorises the group to carry out labour leasing in Germany. The Arbeitnehmerüberlassungsgesetz (AUG) is the law which regulates the business of one company transferring its employees to work temporarily with another company within Germany. This practice requires a licence called an AUG License. It is a legal requirement that any management company or other entity ‘hiring out’ personnel to a German organisation hold such a license.
Some agencies and end-user clients will refuse to deal with a contractor unless the employer has obtained an AUG license as it is not lawful to carry out labour leasing without holding this licence. The AUG is administered by the Bundesagentur für Arbeit (Federal Employment Office).Companies who employ leased contractors in Germany from a management company that does not hold an AUG License, run the risk of the contractor claiming to be the direct employee of that company.
This can lead to extra costs with social security and other contributions having to be paid by the client. This will not occur when Access Financial leases employees to a company since these will be employed directly through our company under AUG License terms.
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