The AUG license (Arbeitnemerüberlassung License) allows companies and agencies to send contractors to provide their services for end-users in Germany. Employee leasing has become a popular means for companies to resolve short-term employment issues and has proven to be enormously beneficial in specific industries. the leased employee market consists of highly qualified workers whose skills may be perfectly suited to a short-term project. For short-term projects, starting in a confident manner is often key to success, and leasing employees with the required attributes often saves time and money that would be spent on training internal employees, or in looking to bring in an employee for the role. At Schlun & Elseven Rechtsanwälte, our certified employment lawyers will provide you with clear guidance on all matters relating to employee leasing and gaining the AUG license.

However, leasing employees can also bring up legal difficulties and disputes. There are times when legal conflicts may arise between the agency worker, the agency and the company hiring the worker. The relationship between the three parties can be blurred at times. Our legal professionals advise companies, agencies and temporary workers on their rights in all employment law matters.

The employment contract is the basis of the employment relationship. As an employer, it is critical to ensure that your contracts are fit for purpose. Expertly drafted employment contracts means that everyone is aware of the expectations within the company, and allows the relationship to be clear from the start. Clear, unambiguous, legally compliant and enforceable employment contracts are in the best interest of your business, and can prevent costly legal disputes.

At Schlun & Elseven Rechtsanwälte, our full-service and multidisciplinary model ensures that your company will receive comprehensive cover in the drafting of your employment contracts. Our employment lawyers work in tandem with our contract law team to ensure that the employment contracts are tailored to your company’s precise needs. This service includes drafting standard form employment contracts that can be used with multiple employees and tailored contracts for senior executives. Additionally, our team can take the responsibility for drafting other employment documents for the business’ needs.

Terminating employment carries certain risks. It is within the employer’s right to terminate an employee’s employment contract with the company, but many legal aspects need to be considered. Firstly, the dismissal must be fair. Fairness refers to the reason for dismissal (ensuring that discrimination has not played a role in the dismissal) and how the dismissal is carried out. Secondly, the required notice periods need to be respected. Such notice periods can differ depending on how long the employee has been a part of the company. Thirdly, according to § 623 BGB, the termination intent should be provided in writing.

The above are the rules for ordinary termination. However, there are also grounds for extraordinary termination where notice periods do not apply. Extraordinary terminations are allowed under § 626 Paragraph 1 BGB.  Extraordinary termination needs to have a reason given, as it is only given in exceptional cases, namely in serious misconduct, such as refusal to work and criminal offences. Employers should be wary in such cases, as extraordinary dismissal can leave them open to legal challenges. Consulting with a legal professional in advance provides peace of mind before making the decision to issue the dismissal.

Terminations can also be arranged by contract through employment termination agreements.

Employee participation in private sector companies often occurs through the “works council”. Its value is not limited to the mere exercise of co-determination and participation rights but also in that employee representation is directly linked to internal structures. Participation in company decisions also increases commitment and the sense of belonging and responsibility towards the company. This sense of belonging and responsibility, in turn, lifts motivation and allows employees to feel that they have some power in their company. Such stimulation can result in greater creativity and increased productivity in the company.

However, disputes can arise between works councils and employers. At Schlun & Elseven Rechtsanwälte, our team can provide the basis for successful cooperation between the different bodies through professional advice and mediation. In matters of dispute, our lawyers employ the skills they have from litigation, arbitration, negotiation and contract analysis to resolve conflicts. Furthermore, in such issues, our team can provide recommendations to repair any damage caused to the employer-employee relationship and, thus, ensure that the parties can cooperate.

For companies and the employee there are great benefits to be gained when posting employees abroad. Posting an employee abroad can benefit the company by allowing a diligent employee to assist a subsidiary in another jurisdiction. Such a move provides that employee with very useful experience that they can bring back to the company afterwards. Moreover, experiencing the work culture in another part of the world can be a huge advantage in global business. However, important legal responsibilities arise when determining which employee can be posted abroad. Concerns arise regarding the duration of the posting, the matter of remuneration and the conditions for returning. Consulting with legal professionals in advance of finalising the posting should be strongly considered to protect the company and the employee.

As a full-service law firm, our lawyers can provide all the assistance needing relating to the immigration law – visas, work permits etc. – and employment contract aspects of such a move. Additionally, we can protect employees from tax traps and problems with social security. By engaging with our services, both the company and the employee will be set up for the posting in foreign countries.

As an employee involved in a legal dispute with your employer, it is in your interest to receive the best advice that you can. Your employer will be in a stronger position upon taking the case; however, having a certified specialist in employment law on your side will rebalance the matter. At Schlun & Elseven Rechtsanwälte, our certified specialists in employment law, Dr Thomas Bichat and Jens Schmidt, have worked with clients worldwide in their dealings with German employment law. As experts, they advise and support clients in all matters of German employment law. With offices and conference rooms around the major cities of Germany, our team is ready to advise you in your legal dispute.