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The fourth largest economy in the world, Germany is well known for its contribution to technological advancements, the automotive industry and science. The country is also home to a massive pool of qualified professionals, especially in the engineering and computer science domains. Plus, given Germany’s stable economy and ease of communication in English, it is an attractive destination for international professionals to seek employment. This also makes the nation a lucrative option for businesses looking to hire a remote workforce.

However, the Arbeitnehmerüberlassungsgesetz (AÜG), or the Temporary Employment Act of Germany is a stringent regulatory framework that requires hiring companies or agencies to be licensed under the Act before leasing or contracting temporary workers in the country. The easiest and most effective way to ensure compliance and find the best-fit candidates for your company is to partner with a specialist third party that will hire the temporary workers on your behalf while ensuring compliance with the local labour laws.

What is AÜG and How Does it Help?

The AÜG licence allows a company to fulfil its short-term skill needs, associated with a timebound project or peak demand periods. For example, a logistics company might require a temporary workforce during the Christmas season to cater to increased demand for deliveries. With temporary or contractual employees, you can downsize your workforce once they are no longer needed. However, termination guidelines need to be followed. An experienced Umbrella company with an AÜG licence for employee leasing in Germany will take care of all regulations to ensure a smooth and hassle-free experience for your company.

Benefits of AÜG Licensed Umbrella for Businesses

Some of the major advantages of partnering with an umbrella company with an AÜG licence in Germany include:

  • Immense flexibility in accessing skilled professionals on-demand.
  • Access to a large database of qualified employees with best-fit competencies.
  • Elimination of obligations usually associated with permanent or full-time employees.
  • Rapid response to changing market or business needs.
  • Responsibilities for monitoring probation periods, employment contracts, termination processes, onboarding and offboarding taken care of on your behalf.
  • Timely payment of employee benefits, payroll management and applicable tax management.

Benefits of AÜG Licensed Umbrella for Contractors

For those seeking contractual work in Germany, knowing what AÜG is and choosing a trustworthy AÜG licensed employer can bring mulitple benefits.

  • Access to employee benefits, such as salaries at part with full-time employees.
  • Up to 30 days of paid leave and paid sick leave.
  • Tax-deductible expenses.
  • Choice of law-mandated health insurance or allowance from the company to obtain a personal health policy from an approved insurer.
  • Peace of mind regarding legal employment and termination.

How Augsight Can Help

Augsight functions under the AÜG licence in Germany, with wide experience in hiring temporary employees/contractors in compliance with the nation’s labour laws. We function as an AÜG licensed umbrella company that is the legal employer of your workforce in Germany. This relieves you of the need to establish a physical presence, obtain the necessary licences or manage the HR-related responsibilities. We take care of all payrolls, social security benefits, taxes and health insurance in a timely, transparent and cost-effective manner.

It is also our responsibility to ensure a safe and conducive working environment for contracted workers, including managing hybrid work models. We understand the consequences of non-compliance and prioritise minimising such risks for your business. We also take care of all the paperwork associated with employing and terminating contractual workers, including work permits and visas, where required.

Learn more about how we can help you with our comprehensive temporary and permanent staffing solutions in Germany, and why RemotePad has judged us one of Germany’s top EORs, by emailing us at