An employment relationship with the host business can be assumed under certain circumstances despite any transfer agreement.
Cologne, NRW -- (SBWIRE) -- 08/29/2013 -- GRP Rainer Lawyers Tax Advisors, Cologne, Berlin, Bonn, Bremen, Dusseldorf, Essen, Frankfurt, Hamburg, Hanover, Munich, Nuremberg, Stuttgart and London http://www.grprainer.com/en explain: The Regional Labour Court of Hamm (LAG) ruled in its judgment of July 24, 2013 (Az.: 3 Sa 1749/12) that an employment relationship exists with the host business despite an employee being transferred on the basis of a services framework agreement if the employee is integrated into the business and the supplying company does not possess the necessary authority for the transfer of employees.
The decision was based on circumstances according to which the claimant was in an employment relationship at a cleaning company. This cleaning company had concluded a services framework agreement with the defendant. The claimant was deployed by the cleaning firm in the defendant’s facility-management sector. A written agreement was first reached two years later. With the defendant, the claimant was provided with a fully equipped workplace, as well as equipment and work clothes resembling those of the defendant’s other employees. The claimant sought to establish with his claim that the employment relationship was not with the cleaning firm but rather with the defendant. The labour court granted the claim.
The defendant’s appeal was rejected by the LAG. An employment relationship with the host business can exist despite an employee being transferred on the basis of a services framework agreement if the employee is integrated into the company and the supplying business does not possess the necessary authority for the transfer of employees. The business plan is decisive for the demarcation of the types of contract, which can be determined from the agreements of the contractual parties, as well as from the practical execution of the contract. The claimant’s employment should not be included in the framework agreement.
In today’s working world, the temporary provision of labour has assumed an important role. The reason for this is that businesses are hereby able to reduce their own financial risks and gain flexibility. In the case of time or temporary work, an employer, the supplier, lends his employees to another business, the hirer. The temporary employee thus becomes active in the hirer’s business. However, the employment relationship between the employee and the employer as supplier continues to exist. In individual cases, there may be exceptions to keep in mind. For this reason, the legal advice of a lawyer versed in labour law should be sought at an early stage.
About GRP Rainer LLP
GRP Rainer LLP http://www.grprainer.com/en/ is an international firm of lawyers and tax advisors who are specialists in commercial law. The firm counsels commercial and industrial companies and corporations, as well as associations, small- and mid-sized businesses, self-employed freelancers and private individuals worldwide from offices Cologne, Berlin, Bonn, Dusseldorf, Essen, Frankfurt, Hamburg, Hannover, Munich, Stuttgart, Bremen, Nuremberg and London UK.
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