{"id":1873,"date":"2026-08-06T15:19:42","date_gmt":"2026-08-06T13:19:42","guid":{"rendered":"https:\/\/galen.de\/?page_id=1873"},"modified":"2026-08-10T10:00:54","modified_gmt":"2026-08-10T08:00:54","slug":"accusation-of-illegal-temporary-employment","status":"publish","type":"page","link":"https:\/\/galen.de\/en\/rechtsgebiete\/wirtschaftsstrafrecht\/arbeitsstrafrecht\/vorwurf-der-illegalen-arbeitnehmerueberlassung\/","title":{"rendered":"Allegation of illegal temporary employment"},"content":{"rendered":"
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Illegal employee leasing \u2013 risks for companies and management<\/h2>

Illegal temporary employment is not a fringe phenomenon limited to specific industries. Companies frequently rely on external workers. Consequently, there is a large supply of temporary staffing agencies (also known as agency work agencies) and personnel service providers. However, where the legal limits of the German Temporary Employment Act (A\u00dcG) are exceeded, significant consequences under labor law, social security law, and even criminal law are likely.<\/span><\/p>

If investigations are carried out by the public prosecutor's office or audits by the Financial Control Unit for Undeclared Work (FKS) of the customs service, not only fines but also criminal charges under the Temporary Employment Act (A\u00dcG) are regularly involved \u2013 often in conjunction with other charges, in particular for withholding and misappropriating wages under Section 266a of the German Criminal Code (StGB).\u00a0<\/span><\/p>

Illegal employee leasing therefore affects not only the company, but also the personally responsible members of the governing bodies, such as management, human resources managers and compliance departments.<\/span><\/p>

The distinction between temporary employment requiring a permit on the one hand and contracts for work and services and job placement on the other is complex and requires a precise analysis of the actual implementation of the contractual relationship.\u00a0<\/span><\/p>

Our lawyers at Galen Rechtsanw\u00e4lte advise and defend clients nationwide in white-collar and employment-related criminal law. We combine expertise in criminal law with a deep understanding of corporate decision-making processes and economic contexts \u2013 and on this basis, we develop a clear defense strategy for your case.<\/span><\/p>

Illegal employee leasing \u2013 its significance for companies and industry risks<\/h2>

Temporary staffing is a key instrument of modern workforce planning. It allows for flexible responses to fluctuations in orders, skills shortages, project-related requirements, or seasonal peaks. Temporary staffing models are of considerable economic importance, particularly in industry, construction, transportation and logistics, healthcare, and the IT sector.<\/span><\/p>

The legal framework for temporary employment is regulated by the German Temporary Employment Act (A\u00dcG). At the heart of the legal system is the licensing requirement stipulated in Section 1, Paragraph 1, Sentence 1 of the A\u00dcG. Any temporary employment agency that provides workers as part of its business activities generally requires a license from the Federal Employment Agency. In addition, the Act specifies, in particular, the maximum duration of temporary employment, equal pay and equal treatment principles, as well as extensive notification, reporting, and information obligations.<\/span><\/p>

Violations of these regulations have significant economic implications. They affect not only the protection of employees, but also the functioning of social security systems and fair competition. Accordingly, there is a strong public interest in the consistent enforcement of these legal requirements.<\/span><\/p>

When is temporary employment illegal and when is it a criminal offense? \u2013 Requirements according to the German Temporary Employment Act (A\u00dcG)<\/h2>

Illegal temporary employment occurs, in particular, when employees are assigned to a third party to perform work without the required permit under Section 1 of the German Temporary Employment Act (A\u00dcG). This alone constitutes an administrative offense for both the temporary employment agency and the client company under Section 16 Paragraph 1 Number 1 or Section 16 Paragraph 1 Number 1a of the A\u00dcG, respectively. Furthermore, Section 16 of the A\u00dcG provides for additional administrative offenses subject to fines for violations of the A\u00dcG.<\/span><\/p>

Distinction: Temporary employment, contract work and job placement<\/h3>

Temporary staffing must be distinguished from work performed under a contract for work and services and from job placement.\u00a0<\/span><\/p>

When distinguishing between a contract for work and services and a contract for services, it is important to consider, among other things, whether the respective employee is integrated into the client's business and what risk allocation the underlying contractual relationship stipulates. Conversely, a precise definition of the work result, for example, suggests a contract for work and services. Ultimately, however, the intentions of the contracting parties are decisive.<\/span><\/p>

Temporary staffing exists when a regular employment relationship exists between the temporary work agency and the temporary worker. If this is not the case, because the worker is only recruited to work within a third party's company under their instructions, then it is considered job placement.<\/span><\/p>

Criminal relevance of employee leasing<\/h3>

Illegal employee leasing is a criminal offense if, as a result, social security contributions or income tax are not properly paid. In such cases, criminal liability for withholding and misappropriating wages under Section 266a of the German Criminal Code (StGB) is particularly relevant.\u00a0<\/span><\/p>

Furthermore, the Temporary Employment Act itself contains criminal offenses for the temporary placement and deployment of foreign nationals without the necessary permits, e.g., without certain residence permits. In such cases, the temporary employment agency may be liable to prosecution under Section 15 of the Act, and the client company under Section 15a. The requirements for the client company's criminal liability are higher: In addition to the activity of the foreign national being placed, further conditions must be met, such as exploitative working conditions, employment on a larger scale, or persistent repetition.<\/span><\/p>

Typical scenarios relevant to criminal law include sham contracts for work and services and chain leasing with fraudulently obtained or forged documents.<\/span><\/p>

How are violations of the Temporary Employment Act (A\u00dcG) detected? \u2013 Investigations by customs and the public prosecutor's office<\/h2>

Investigations into illegal temporary employment often begin as part of company audits under Section 28p SGB IV or through checks by the Financial Control Unit for Undeclared Work (FKS) of the customs service.<\/span><\/p>

The public prosecutor's office is conducting the investigation. It regularly utilizes specialized economic crime departments. Typical investigative measures include searches of business and private premises pursuant to Sections 102 and 103 of the Code of Criminal Procedure, the seizure of digital data, and a comprehensive evaluation of payroll and contract documents.<\/span><\/p>

What penalties are imposed for illegal temporary employment?<\/h2>

Violations of the Temporary Employment Act (A\u00dcG) can be punished as administrative offenses with substantial fines. The amount depends on the type, duration, and extent of the violation. Fines for some violations can reach up to \u20ac50,000.<\/span><\/p>

Section 15, paragraph 1, and Section 15a, paragraph 1, sentence 1, of the German Temporary Employment Act (A\u00dcG) provide for a fine or imprisonment of up to three years. In particularly serious cases, the penalty ranges from six months to five years imprisonment.<\/span><\/p>

Illegal employee leasing is also frequently subject to criminal prosecution under Section 266a of the German Criminal Code (StGB). The penalty ranges up to five years imprisonment or a fine, and up to ten years in particularly serious cases. The severity of the sentence depends primarily on the amount of contributions withheld and the duration of the offense. If other evidence is lacking, damages under Section 266a StGB can be calculated by extrapolating net wages to gross amounts (Section 14 Paragraph 2 of the German Social Code, Book IV (SGB IV)). These calculation methods are often subject to challenge and require careful review as part of the defense.<\/span><\/p>

In addition to the main penalty, secondary consequences regularly arise, such as the confiscation of proceeds of crime pursuant to Sections 73 et seq. of the German Criminal Code (StGB), entries in the Central Trade Register, and possible professional disqualifications pursuant to Section 70 of the German Criminal Code (StGB). Furthermore, companies face substantial fines under the Administrative Offenses Act.<\/span><\/p>

Criminal defense in cases of illegal employee leasing \u2013 your legal representation in labor criminal law<\/h2>

Criminal investigations into illegal employee leasing require a strategic and precise approach. Our lawyers begin by conducting a comprehensive review of the case file in accordance with Section 147 of the German Code of Criminal Procedure (StPO).<\/span><\/p>

We analyze the actual deployment structures and the underlying contracts. Based on this, we examine the social security classification of the employment relationships in question and their classification as temporary agency work.<\/span><\/p>

If necessary in the specific case, this will be followed by a careful review of the damage calculation.\u00a0<\/span><\/p>

In addition to providing defense services during investigations and trials, we place particular emphasis on preventative consulting. With our forensic experience in white-collar and labor criminal law, we support companies in structuring legally compliant temporary staffing models and establishing robust compliance structures. Our goal is to identify criminal risks early on and protect the professional and economic livelihoods of our clients.<\/span><\/p>

Are you the subject of an investigation? For a successful defense, we recommend seeking legal advice early on.\u00a0<\/span><\/p>

Please contact us to arrange an appointment.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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FAQs \u2013 Frequently Asked Questions about Illegal Temporary Employment<\/h2>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\tWhat is the difference between temporary employment and a contract for work and services?<\/span>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t
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In a contract for work and services, the contractor is responsible for achieving a specific result and organizes the work independently. In contrast, in temporary staffing, labor is provided that is integrated into the client's organization and subject to their instructions. The decisive factor is not the contractual designation, but the actual circumstances.<\/span><\/p><\/span>\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t

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Unlike temporary staffing, in job placement no employment relationship is established between the agency and the temporary worker. This is because the worker is intended from the outset to work for a third party in that party's company and under that party's instructions, and is merely recruited for that purpose.<\/span><\/p><\/span>\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\tWhen is temporary employment subject to licensing requirements?<\/span>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t
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A permit is required if an employee is seconded by the hirer to a third party to perform work as part of their business activities. Even a single secondment generally requires a permit.<\/span><\/p><\/span>\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\tDoes illegal employee leasing automatically lead to criminal liability?<\/span>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t
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Not every violation of the German Temporary Employment Act (A\u00dcG) is a criminal offense. Often, it initially constitutes an administrative offense. Criminal relevance arises particularly when foreign nationals are employed without the required permits or when social security contributions have been intentionally not paid.<\/span><\/p><\/span>\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t

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You are not obligated to provide any information regarding the matter. It is advisable to exercise your right to remain silent and to seek legal counsel immediately. Legal representation during the proceedings can be crucial for the further course of the case.<\/span><\/p><\/span>\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t

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You should seek legal advice immediately upon receiving a summons, an audit notice, or a search warrant. Early legal action allows you to set a strategic course and avoid unnecessary risks.<\/span><\/p><\/span>\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

Illegale Arbeitnehmer\u00fcberlassung \u2013 Risiken f\u00fcr Unternehmen und Gesch\u00e4ftsf\u00fchrung Die illegale Arbeitnehmer\u00fcberlassung ist kein Randph\u00e4nomen einzelner Branchen. Unternehmen greifen vielfach auf externe Arbeitskr\u00e4fte zur\u00fcck. Entsprechend gro\u00df ist das Angebot durch Zeitarbeitsfirmen (auch Leiharbeitsfirmen genannt) und Personaldienstleister. Wo jedoch die gesetzlichen Grenzen des Arbeitnehmer\u00fcberlassungsgesetzes (A\u00dcG) \u00fcberschritten werden, drohen erhebliche arbeits-, sozial- und auch strafrechtliche Konsequenzen. Kommt es […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":1327,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"class_list":["post-1873","page","type-page","status-publish","hentry"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t