Permit for temporary agency work: application, requirements, renewal

What is the permit for temporary agency work?

Anyone who, as a temporary work agency (Verleiher), assigns employees to third parties to perform work needs the permit under § 1(1) AÜG. It applies to the applicant person or company, not to an establishment: branches that are not legally independent are included, but every legally independent company needs its own permit. If there are no grounds for refusal, there is a legal entitlement to the grant.

Without a permit, the assignment contract is invalid. So is the employment contract, and an employment relationship with the client is deemed to have been established unless the temporary agency worker makes an effective declaration of continuation (Festhaltenserklärung) (§§ 9, 10 AÜG). In addition, fines of up to €30,000 may be imposed (§ 16 AÜG). For staff-sharing between employers (Kollegenhilfe) by employers with fewer than 50 employees, prior notification is sufficient under strict conditions (§ 1a AÜG). The basic terms are explained in the articles AÜG and Temporary agency work.

How do you apply for the AÜG permit?

The application must be made in writing (§ 2(1) AÜG), preferably using form AÜG 2a. In the BA's online portal, logging in with an ELSTER company certificate or the online ID function replaces the written form. A scanned application sent by email, on the other hand, is only sufficient with a qualified electronic signature.

According to the BA's information leaflet, permit holders are handled by the temporary agency work teams of the local employment agencies in Düsseldorf (North Rhine-Westphalia, Hesse), Nuremberg (Bavaria, Baden-Württemberg, Rhineland-Palatinate, Saarland) and Kiel (all other federal states). According to its instructions, the BA should generally decide within three months. The permit takes effect when the decision is notified. The BA does not give binding advance rulings on whether a particular business model falls under the AÜG.

Which documents does the BA require for the initial application?

For the first grant, the Technical Instructions (FW 2.1.4.1) list, among other things:

• the articles of association or statutes, or a chronological extract from the commercial register,
• a certificate of good conduct for submission to authorities (document type O) and an extract from the central trade register for the applicant or representatives,
• certificates from the health insurance funds and the employers' liability insurance association (Berufsgenossenschaft),
• proof of liquid funds: at least €15,000 for up to five temporary agency workers, for more than five at least €3,000 per temporary agency worker,
• a sample employment contract and a sample temporary agency work contract (Arbeitnehmerüberlassungsvertrag).

The BA only checks the samples for the mandatory details under § 11 AÜG, § 2 of the Act on the written statement of employment terms (NachwG) and § 12 AÜG; it does not carry out a legal assessment. It requests missing documents once, usually with a deadline of no more than two weeks.

When is the AÜG permit refused?

The BA must refuse the permit or its renewal if facts suggest that the applicant is unreliable, that their business organisation does not ensure that the usual employer obligations are met or that they withhold the working conditions under § 8 AÜG from temporary agency workers (§ 3(1) AÜG). In particular, anyone who does not comply with social security, wage tax or occupational health and safety law, the maximum assignment period or employment law obligations is considered unreliable. The permit is also refused if workers are to be assigned from establishments outside the EU and the EEA (§ 3(2) AÜG).

What fees are charged for the AÜG permit?

The BA charges €377.00 for the initial application; all fees are listed in the annex to the Special Fees Ordinance of the Federal Ministry of Labour and Social Affairs (BMASBGebV), which has applied since 01.10.2021:

Renewal and unlimited permit: which deadlines apply?

The permit is limited to one year; the period begins on the day it takes effect. The renewal application must be submitted no later than three months before expiry (§ 2(4) AÜG), and the BA treats this as a strict cut-off deadline (Ausschlussfrist). If it does not refuse before expiry, the permit is extended by one year. Example with an assumed start on 01.04.2026:

A late renewal application is treated as a new application; if no positive decision has been made by the end of the permit year, the assignment must end, without a wind-down period. After three consecutive years of permitted activity, the permit can be granted without a time limit (§ 2(5) AÜG). For this, the BA expects at least one assignment in each permit year. An unlimited permit expires if it is not used for three years.

What obligations does the permit holder have after the grant?

• Notifications: Anyone who relocates, closes or opens establishments in which assignment takes place must notify the BA of this in advance without being asked; a change in management or representation must also be notified without being asked (§ 7(1) AÜG).
• Information and inspections: Provide information, keep business records for three years, allow inspections on the business premises (§ 7(2) and (3) AÜG).
• Contracts: The written statement of the contract terms names the permit authority as well as the place and date on which the permit was granted (§ 11(1) AÜG); in the assignment contract, the temporary work agency declares whether it holds the permit (§ 12(1) AÜG).
• Loss of the permit: Clients and temporary agency workers must be informed immediately (§ 11(3), § 12(2) AÜG).

The BA can withdraw an unlawful permit (§ 4 AÜG) and revoke a lawful one, for example if conditions attached to it are not met (§ 5 AÜG) – in each case only within one year of becoming aware of the facts. Ongoing contracts may then be wound down for no more than twelve months.

Common mistakes when applying for and renewing the AÜG permit

• The renewal application is received later than three months before expiry.
• The proof of liquidity does not match the planned number of temporary agency workers.
• The sample contracts do not state the type and amount of payments for periods without assignment (§ 11(1) AÜG).
• A new managing director is not notified to the BA; this can result in a fine of up to €1,000.
• A legally independent subsidiary assigns staff under the parent company's permit.
• A client passes temporary agency workers on to third parties – not permitted even with its own permit, because only one's own employees may be assigned (chain assignment).

Checklist for the initial application and renewal of the AÜG permit

1. Clarify whether a permit is required or whether a notification under § 1a AÜG is sufficient.
2. Request the certificate of good conduct and register extracts early, and provide proof of liquidity that matches your plans.
3. Submit the application using form AÜG 2a online or in writing, and budget for the fee.
4. Include the permit details in employment and assignment contracts, and note the expiry date.
5. Apply for renewal no later than after the reminder letter, and report changes subject to notification in good time.

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