Temporary Employment Agency License

Any business that supplies temporary workers to other companies (Zeitarbeit or Leiharbeit) needs a temporary employment agency license (Arbeitnehmerüberlassungserlaubnis) under the Temporary Employment Act (AÜG). Operating without this license is illegal and can result in fines and the workers being treated as direct employees of the client company.

The license is issued by one of three designated employment agencies (Agentur für Arbeit) in Düsseldorf, Kiel, or Nürnberg. You must demonstrate financial reliability with liquid funds of at least 15,000 euros (or 3,000 euros per planned temporary worker), submit a police clearance certificate, and provide a trade register excerpt. The license is initially granted for one year and can be renewed. After three consecutive annual renewals, you may apply for an unlimited license.