The hallmark of the temporary employment industry is the special triangular relationship that exists among employees, temporary work agencies, and client companies. It is governed by the Temporary Employment Act (Arbeitnehmerüberlassungsgesetz). Temporary employees are employed by the agencies and receive a contract of employment and wages from them. But they provide their services directly to client companies.
IN TIME Personal-Zeitservice GmbH & Co.KG manages its employment contracts with its employees in accordance with the collective agreements Temporary Employment, Interessenverband Deutscher Zeitarbeitsunternehmen e.V. (iGZ).
The administration of employees between the temporary employment agencies and the client companies is carefully regulated. Clients are contractually granted the right to give instructions to the employees, but there is technically no employment relationship between the employee and the client.
Companies of all sizes and in almost all sectors use temporary employment agencies to handle staff shortages during, e.g., peak order times, vacations and sick leave, and for representation during parental leaves. They also offer an integral way for companies to familiarize themselves with prospective employees before offering permanent employment.