Leihfirma and Zeitarbeit in Germany: How Temporary Employment Works

In Germany, a Leihfirma, Zeitarbeitsfirma, or Personaldienstleister is a company that employs a worker and assigns them to work for another employer. This arrangement is called Arbeitnehmerüberlassung or Zeitarbeit and is governed by the Arbeitnehmerüberlassungsgesetz (AÜG).

For a job seeker, it can be a quick way into the labour market, but the terms need especially careful reading. The worker effectively performs tasks at one company, while the employment contract, salary, holiday, sick pay, and social-security contributions are handled through another.

What a Leihfirma is in simple terms

There are three parties in the arrangement:

Party	Role
Worker	Signs an employment contract with the Leihfirma and performs work for the client
Leihfirma / Verleiher	The official employer: pays salary and handles personnel records, insurance, and taxes
Client company / Entleiher	Organises the actual work on site and pays the Leihfirma for the worker supplied

In Russian, this model is often called “temporary employment”, “staff leasing”, “hired labour”, or “outstaffing”. “Outsourcing” is less accurate: outsourcing normally transfers a function or project, whereas in Arbeitnehmerüberlassung the person works under the organisational control of the client company.

How temporary employment works

Usually, the Leihfirma concludes an Arbeitsvertrag with the worker and a separate personnel-supply agreement with the client company. The worker goes to the client’s site each day: a factory, warehouse, office, clinic, IT project, or another location. However, it is the Leihfirma, not the client, that pays the salary.

For the client company, this is convenient when it needs to cover a temporary need quickly: a seasonal order peak, an employee’s illness, a holiday, a project lasting several months, or an urgent production task. For the worker, the advantage is that an intermediary may find a first job more quickly than a direct employer.

The downside is that stability and career progression are often weaker than in direct employment. When a project ends, the Leihfirma looks for another placement. If there is no suitable Einsatz, there may be downtime, a transfer to another site, or a risk of dismissal under the employment contract and applicable collective agreement.

Where Zeitarbeit is most common

Zeitarbeit is not used only to find unskilled staff. But it is most common in sectors where companies need flexibility:

• manufacturing and metalworking;
• electrical and installation work;
• logistics, warehouses, and transport;
• cleaning and facility services;
• security;
• care, medicine, and social institutions;
• engineering, technical, and IT projects.

In skilled professions, a Leihfirma can be a way to get onto a project at a large company. In unskilled work, it is often a quick start, but conditions may differ significantly from what the advert suggests.

Advantages of working through a Leihfirma

• You can start work faster, especially if you have no German experience.
• You gain access to companies that do not advertise all vacancies directly.
• You can try different workplaces and industries without independently searching for every employer.
• You may sometimes transfer to the client’s staff if the advert and arrangement genuinely include an Übernahmeoption.
• You receive salary, holiday pay, sick pay, and social insurance through an official employer.

For newcomers to Germany, this can be a workable option if they need to start quickly, improve their German in practice, and understand the local labour market.

Disadvantages and risks

• The workplace can change, sometimes involving an inconvenient commute.
• Pay and bonuses can be lower than for the client’s permanent employees if a collective-agreement deviation from Equal Pay applies.
• A promise of future direct employment does not always turn into an actual offer.
• Career development depends not only on the client but also on the Leihfirma.
• Advertisements may use soft wording and not reveal immediately that the contract will be with an intermediary.
• For nationals of non-EU countries, work through Arbeitnehmerüberlassung can be a sensitive issue when arranging a work visa or residence permit.

Important AÜG rules

Authorised Arbeitnehmerüberlassung is required

Commercially assigning workers to other companies in Germany generally requires authorisation. If the arrangement is set up incorrectly, it creates risks for the intermediary, the client, and the worker.

Maximum period with one client

The general AÜG rule is that the same worker may not be assigned to the same Entleiher for more than 18 consecutive months. Previous periods with the same client count if the break between them does not exceed 3 months. Particular industries or collective-agreement rules may have special deviations, so the specific contract should be checked separately.

Equal Pay and collective-agreement exceptions

The basic AÜG principle is equal essential working conditions for agency workers and comparable permanent employees at the client. In practice, Zeitarbeit often uses collective agreements that may temporarily depart from Equal Pay. It is therefore important to check:

• which Entgeltgruppe is stated in the contract;
• which Tarifvertrag applies;
• when entitlement to Equal Pay or Branchenzuschläge arises;
• how overtime, Nachtarbeit, Feiertage, and downtime are paid.

Minimum pay

Zeitarbeit is subject not only to the general Mindestlohn, but also to sectoral collective-agreement minimums. In 2026, rates depend on the date, pay group, and applicable agreement. Therefore, check the specific hourly rate against the current Entgelttabelle and the employment contract itself, rather than relying only on the advertisement.

What to check in an Arbeitsvertrag

Before signing a contract with a Leihfirma, check the following carefully:

• who exactly is the employer;
• whether it states that the arrangement is Arbeitnehmerüberlassung;
• the position, qualification group, and Entgeltgruppe;
• hourly pay, Zuschläge, Sonderzahlungen, and bonus conditions;
• working hours, the Arbeitszeitkonto, and rules on Plusstunden and Minusstunden;
• the region or radius within which you may be assigned to clients;
• who pays for travel to the actual workplace;
• contract term, Probezeit, and Kündigungsfrist;
• rules for downtime when no suitable Einsatz is currently available;
• conditions for a possible transfer to the client’s permanent staff.

Do not rely only on verbal promises from HR. If an important condition is not written into the contract or an annex, it is difficult to prove later.

How to tell that a vacancy is through a Leihfirma

Advertisements do not always say “Leihfirma” directly. More neutral terms often appear:

• Zeitarbeit;
• Arbeitnehmerüberlassung;
• Personaldienstleister;
• Überlassung;
• Einsatz bei unserem Kunden;
• Übernahmeoption or Übernahmechancen;
• langfristiger Einsatz mit Option auf Übernahme.

If you are unsure, ask directly: Schließe ich meinen Arbeitsvertrag direkt mit dem Unternehmen oder mit einem Personaldienstleister? This is a normal interview question.

Example: a vacancy through an intermediary

The phrase Arbeitnehmerüberlassung usually means that the employment contract will be with the Leihfirma and the actual work will be for the client. The wording Übernahmechancen bei unserem Kunden means only that a transfer may be possible, not that it is guaranteed.

Example: direct employment

The phrase Festanstellung more often indicates a permanent staff position. But here, too, it is important to clarify exactly who will sign the contract with you.

Where to seek help in a dispute

If a dispute arises over pay, working hours, dismissal, or contract terms, first collect documents: the Arbeitsvertrag, Einsatzmitteilungen, payslips, timesheets, correspondence, advertisements, and confirmations from the client.

Possible sources of help include:

• the Betriebsrat at the Leihfirma, if there is one;
• the Betriebsrat at the client company for questions about working conditions on site;
• the Faire Integration advisory project for migrants and foreign workers;
• a Gewerkschaft, if you are a union member;
• a Fachanwalt für Arbeitsrecht;
• the Arbeitsgericht, if the dispute cannot be resolved through negotiation.

Time limits matter in employment disputes, especially after a dismissal. If you receive a Kündigungsschreiben, do not delay seeking advice.

Leihfirma and a work visa

For nationals of countries outside the EU, working through a Leihfirma requires particular caution. German immigration law and approval by the Bundesagentur für Arbeit distinguish between the basis of employment, qualifications, salary, type of residence permit, and specific role. In some cases, work as a Leiharbeitnehmer can be a problem for approval or a visa, but the rules depend on the particular permit category.

If you are applying for a work visa or EU Blue Card, do not draw conclusions solely from the employer’s name. Check whether Zustimmung der Bundesagentur für Arbeit is required, which position and salary are stated, who the actual Entleiher is, and whether this arrangement is permitted for your basis of entry.

In uncertain cases, it is better to obtain written clarification from the employer and specialist advice before submitting documents.

Is it worth accepting a Leihfirma job?

Work through a Leihfirma can be a reasonable option if:

• the terms are transparent and written into the contract;
• the rate matches the collective agreement and the market;
• the workplace is genuinely convenient;
• you understand who your employer and client are;
• there is a clear plan to transfer to permanent staff or gain experience;
• visa conditions do not conflict with Arbeitnehmerüberlassung.

It is better to decline or pause if the vacancy is vague, HR avoids answering who the employer is, promised bonuses are not written down, the contract is provided at the last minute, or you are asked to sign a document you have not had time to read.

Short checklist before signing

• Ask who will be named as the employer in the Arbeitsvertrag.
• Look for the terms Arbeitnehmerüberlassung, Zeitarbeit, Verleiher, and Entleiher.
• Check the Entgeltgruppe, collective agreement, and hourly rate.
• Clarify the work address, assignment radius, and travel reimbursement.
• Ask for the Übernahmeoption in writing if it is important to you.
• For a visa or residence permit, check whether this employment is allowed before applying.
• Save the advertisement and all correspondence until your first working day.

Conclusion

A Leihfirma in Germany is a legal form of employment, but it is not a universally safe shortcut. It can provide a quick start and experience, but it requires careful scrutiny of the contract, pay, workplace, collective-agreement rules, and immigration conditions. The more precisely you understand who is hiring you and where you are being assigned, the lower the risk of unpleasant surprises after signing.