Germany: the grand coalition adopts an agreement on limiting temporary work and services provisions contracts

Following months of controversy, Germany’s government coalition (CDU/CSU, and SPD) heads finally agreed in a closed meeting at the Finance Ministry during the evening of 10 May on a new regulation for the country’s labor market. The agreement intends for a tighter framework for temporary work and services provisions contracts. Going forward, temporary workers will in general only be allowed to work in the same company for a maximum of 18 months. Pay equality will apply across all sectors, once the temporary worker has completed nine months in work. Andrea Nahles, Minister for Social Affairs and Labor also included a significant point, namely, that companies will not be able to deploy temporary workers as ‘strike breakers’. The cabinet is expected to adopt the draft law adopted on 18 May and then it will go before the Bundestag. Final implementation is expected for 01 July 2017.
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Exceptions will be possible if the social partners so wish. Andrea Nahles took it upon herself to announce the good news. “I am happy because tonight we secured an agreement,” the Social-Democrat minister enthused at the close of the summit meeting. “Going forward, employers and unions will have clear rules that will enable them to combat excessive recourse to temporary work and services provisions contracts.”

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