Contracts for work and temporary work: the difference between the two forms
Temporary work and contracts for work and services are two completely different types of contract that are often confused in media reports. Companies planning to outsource certain activities should be aware of the significant differences between the two forms.
Many companies not only employ their own staff, but also use external personnel as workers. Two forms frequently used for this are contracts for work and services and temporary work. A contract for work and services is a special contract under private law that is tied to the production of a specific workpiece. This workpiece can be an immovable work such as a house or a specific work result such as software or an expert opinion. The contractor undertakes to perform the specified work, while the customer must pay the agreed wage. Incidentally, contracts for work and services can only be concluded with external companies, but not with the company's own employees. In contrast, temporary work involves the temporary employment of workers. This type of employment is therefore not related to a result, but is based on the fulfillment of fixed working hours in return for remuneration. In the case of contracts for work and services, a result is purchased, whereas in the case of temporary work, employees are borrowed. In a contract for work and services, the exact result is specified, which must be fulfilled in full in order for the remuneration to be paid. The contractor is responsible for the processes and the exact procedure. The contractor also assumes responsibilities such as documenting working hours and complying with health and safety measures. In addition, he bears full liability for the employees involved in the project. In the past, some companies have repeatedly abused contracts for work and services and taken advantage of the absence of liability and the significantly lower payment for outsourced activities. In particular, the poor conditions in the meat industry, where almost the entire production is outsourced to subcontractors via contracts for work and services, has recently come under heavy criticism. Trade unions such as ver.di are therefore planning to reduce precarious employment through new regulations such as the introduction of collective agreements.
In the case of temporary work, employees are deployed by a third-party company within the framework of the Temporary Employment Act as if they were employed there. As the lower limit for the salary is stipulated in the iGZ-DGB collective agreement, there is no wage dumping. All other framework conditions are also laid down in labor law and the collective agreement. The leased employees are therefore much better protected against adverse labor regulations than with a contract for work. In addition, they have the right to participate in decisions in the company used within the framework of the organizational structure. The hirer is also authorized to issue instructions under the temporary employment contract.
If a company needs workers quickly due to order peaks or bottlenecks in its own workforce, temporary staffing is the ideal solution. temporary work is an ideal tool for bridging this situation. Temporary work makes it possible to overcome temporary staff shortages without the need for new permanent employees. There is no need for time-consuming and cost-intensive recruiting. Professional service providers take care of the selection of suitable employees. Large temporary employmentcompanies have a large pool of employees with a wide range of qualifications. This means that most staffing gaps can be filled quickly and in line with demand. In addition, personnel costs can be calculated very well with temporary employment. Non-wage labor costs and absenteeism costs due to illness or vacation are borne by the hirer. Temporary workers have the option of being taken on as permanent employees at the end of the contract.
The development of temporary work is characterized by economic cycles and repeated legislative changes. The long-term trend in the number of temporary workers points upwards: While in 1990 only 100,000 temporary workerswere employed in 1990, there was an average of over 800,000 in 2019. In the wake of the coronavirus crisis, the number is likely to fall significantly in 2020; the employment agency will publish more precise results in 2021.
