LABOR LEASING FREQUENTLY ASKED QUESTIONS

Utilizing Rich Global Solutions GmbH (RGS) for labor leasing services in Europe offers a range of advantages. Here are some key benefits of partnering with RGS:

Expertise and Specialization

• Sector-Specific Knowledge: With a focus on defense, government contracting, operations, and logistics, RGS brings a depth of knowledge and understanding that is tailored to the unique requirements of these sectors.
• Veteran-Owned and Operated: Leadership by a US military veteran with nearly two decades of experience in Europe adds a layer of credibility and insight, ensuring that RGS is deeply familiar with the missions, requirements, and needs of its clients.

Legal and Regulatory Compliance

• AÜG Licensing: Possessing an Arbeitnehmerüberlassungsgesetz (AÜG) labor leasing license means RGS is fully compliant with German and EU labor laws, offering peace of mind to clients about the legality and ethical standing of their labor leasing arrangements.
• Cross-Border Operations: As a bona fide German/EU corporation, RGS is well-positioned to navigate the complexities of cross-border labor leasing within the EU, ensuring smooth and compliant operations for its clients.

Operational Efficiency

• Strategic Placement: RGS’s ability to identify and place highly skilled professionals like project managers, site managers, and business development personnel, or unskilled personnel can significantly enhance the efficiency and effectiveness of client operations in Europe.
• Flexibility and Scalability: Whether it’s a short-term project specific need or long-term business development strategy, RGS offers the flexibility to scale labor solutions according to the evolving needs of its clients.

Cultural and Local Insight

• Understanding of Local Markets: With extensive operational experience across Europe, RGS offers valuable insights into local market dynamics, regulations, and cultural nuances, facilitating smoother entry and operations for its clients.
• Tailored Consulting Services: Beyond labor leasing, RGS’s consulting services are informed by a rich understanding of the defense and government sectors, providing clients with strategic guidance that aligns with their goals.

Commitment to Excellence

• Quality and Reliability: The combination of specialized expertise, a veteran-led leadership, and a commitment to compliance and excellence makes RGS a reliable partner for businesses looking to navigate the complexities of labor leasing in Europe.
• Customer-Centric Approach: RGS’s deep understanding of its clients’ missions and requirements translates into a customer-centric approach, ensuring that the solutions provided are not only effective but also closely aligned with client objectives.

In Germany, labor leasing (Arbeitnehmerüberlassung) and temporary employment are essentially synonymous. Both refer to a model where employees are hired by a staffing agency and then leased to work for the agency's clients. The key benefit is that you, the end-user company can use the leased employee as if they are your own employee without having to enter into an employment agreement with the temporary employee. 

While both an employee leasing firm and professional employer organization (PEO) share some similarities, there are also important differences between the two types of arrangements.

The primary one is that, generally speaking, a leased employee is brought on for a set period of time or project. In that way, they are often considered “temporary” employees and, when their work is done, they will return to the staffing company. With a PEO, on the other hand, the employment could be indefinite. And, since the PEO takes over management of your existing staff of permanent employees, even if you end your relationship with the PEO, your team will still work for you at your place of business.

Generally, German-based companies can lease employees to work in various countries, but the feasibility and legality depend on the following considerations:

European Union (EU) and European Economic Area (EEA)

• Freedom of Movement: Within the EU and EEA, there is a principle of freedom of movement for workers, which generally allows employees, including leased employees, to work in other member states with fewer restrictions. This is facilitated by the EU’s regulatory framework, which aims to ensure fair treatment and protection of workers across member states.

Countries with Bilateral Agreements

• Social Security Agreements: Germany has social security agreements with several countries outside the EU/EEA. These agreements often include provisions related to temporary work assignments and can facilitate the process of leasing employees to work in these countries by clarifying social security obligations and rights.

Third Countries

• Compliance with Local Laws: When leasing employees to countries without specific agreements with Germany or outside the EU/EEA framework, we ensure compliance with the local labor laws of the host country. This includes obtaining the necessary work permits and visas, adhering to local employment standards, and ensuring the protection of the leased employees’ rights as per the host country’s regulations.

The benefits include increased flexibility in staffing, reduction in recruitment and administrative costs, and the ability to rapidly scale up or down in response to business needs.

We employ a thorough selection process that includes interviews, qualification verifications, and skill assessments to ensure our personnel meet your specific needs.

Labor leasing in Germany may only take place for a maximum period of 18-months. However, this period can start afresh for the same employee after the lease has been interrupted for more than three months and a  new lease is them commenced.

Costs can vary widely and typically include the employee's salary, social security contributions, and a service fee for the leasing agency. Based on the circumstances, you can expect to pay set-up or start-up cost and a per employee per month fee or a percentage of payroll. Detailed pricing structures are provided upon inquiry.

The process usually involves defining your requirements, selecting candidates from the agency's pool, and integrating them into your workforce, with support from the agency throughout.

Agencies ensure compliance through adherence to the Arbeitnehmerüberlassungsgesetz (AÜG), which regulates temporary employment in Germany, including workers' rights, maximum leasing durations, and equal pay.

Agencies typically offer the option to request a replacement employee to ensure your needs are met satisfactorily.

Leased employees are entitled to the same basic working conditions as the client's permanent staff, including equal pay, working hours, holidays, and health and safety standards, as per the AÜG.

Employees in labor leasing arrangements are entitled to social security benefits, including health insurance, pension contributions, unemployment insurance, and accident insurance, similar to permanent employees.

Depending on the terms of your contract with us, you may have the right to refuse a placement, though this might affect your employment status with the us.

We provide various support, including assignment-related issues, professional development opportunities, and assistance with administrative tasks.

Labor leasing in Germany may only take place for a maximum period of 18-months. However, this period can start afresh for the same employee after the lease has been interrupted for more than three months and a  new lease is them commenced.

At the end of an assignment, you may be offered another placement by us or you may return to our pool until another suitable position arises.