The Temporary Agency Work Act (Arbeitskräfteüberlassungsgesetz or AÜG) and the respective collective agreement regulations (for blue-collar workers the collective agreement for the supply of temporary workers, and for white-collar workers the collective agreement for white-collar workers in crafts, trades and services) ensure that temporary workers are not in a worse position than the third-party employer’s permanent employees.

However, if the employee then enters into direct employment with the third-party employer, outstanding holiday and compensatory time entitlements cannot be carried over into the new direct employment relationship, as a new employment contract is concluded and these outstanding entitlements from the previous employment relationship with the transferor are settled.

The administration involved may also be greater, e.g. due to double time recording or approval processes.