On Monday 16 November, Andrea Nahles, Minister for Employment and Social Affairs, in following the coalition government’s program, presented parliament with her third key project that looks to restrict recourse to temporary contracts and services contracts. The draft law looks to limit temporary work in the same company to a period of 18 months including the possibility to negotiate an extension to this period. A series of eight criteria will set out regulations over a favorite employment strategy of German companies, i.e. services contracts. The draft law that still has to go before the Chancellor and the Ministers concerned has been broadly criticized by the Employers’ Federations who believe it will lead to an administrative monster as well as serving as a brake on the digitalization of the economy.
18 month limit on temporary work. Following measures over the minimum wage and retirement at age 63, the Minister for Employment and Social Affairs, Andrea Nahles presented a draft law on labor market regulations that is expected to come into force on 01 January 2017. The draft law includes two significant changes to temporary work. First, temporary workers cannot be employed for more than 18 months in the same company. An exception to this will be authorized if the company signs a sector collective agreement and if the social partners request it and in which case the temporary contract can be extended for a maximum period of 12 months.
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