What are the differences between German and Italian labor leasing regulations?
"Arbeitnehmerüberlassung" is a German term that translates to "employee leasing" or "temporary employment" in English. It refers to a situation where a company (the employer) hires employees through a staffing agency and then leases them to another company (the client) for a specific period. In this arrangement, the staffing agency is the legal employer of the workers, but they work under the direction and supervision of the client company. The equivalent in Italian is “Sommistrazione di Manodopera”, or “Staff Leasing” or “Lavoro Interinale”.
This employment model is commonly used in various industries to meet temporary or fluctuating staffing needs. It allows companies to quickly fill positions with qualified personnel without going through the full hiring process. The client company benefits from the flexibility of adjusting its workforce according to demand, while the staffing agency takes care of recruiting, payroll, and other employment-related responsibilities.
Both Italian and German labor leasing regulations, are subject to change, and it's important to check the most recent legal updates. That being said, here are some general differences between German and Italian labor leasing regulations. Here are some:
Maximum Assignment Duration
In Germany, there is a maximum assignment duration for leased workers (EOR employees), which is 18 months, after which the leased employee should be offered a permanent position by the client company.
In Italy, there are also regulations regarding the maximum duration of temporary assignments, but the specifics may vary. Historically, Italy has had restrictions on the total length of temporary contracts and the possibility of renewing them. It is also possible to offer open-ended (indefinite) contracts by the Italian Employer of record (Staff Leasing).
Equal Treatment
Both Germany and Italy have regulations to ensure equal treatment of leased workers compared to permanent employees in similar roles. EOR employees should receive comparable wages and benefits.
Termination and Notice Periods
Notice periods and termination procedures for leased workers can differ between the two countries. Employers are typically required to comply with national labor laws regarding termination, including providing notice or severance pay.
Client Company Responsibility
In both countries, the client company using Employer of Record workers is responsible for providing a safe working environment and complying with labor laws. However, the specific obligations and liabilities may vary.
Worker Representation
Both Germany and Italy have regulations regarding the rights of leased employees to be informed and consulted about matters that concern them. In Germany, works councils play a significant role in employee representation.
Licensing and Regulation of Staffing and EOR providers in Germany and in Italy
The licensing and regulation of staffing agencies can vary. In both countries, EOR agencies need to comply with specific requirements and obtain licenses to operate legally. If an Employer of Record Organization both in Italy and Germany operates without a license, the business is illegal.
Permanent Employment Offers
In Germany, after a certain period of temporary employment, the client company is often required to offer a permanent position to the temporary worker. This is part of efforts to prevent long-term temporary work without job security.
In Italy, there have been regulations aimed at limiting the excessive use of temporary contracts, promoting stable employment.
If you would like to receive more information on this topic do not hesitate to contact us!