Temporary agency work exists when an agency assigns its employees to a client, where they work under the client's direction. In Germany it requires a permit under the Temporary Agency Work Act (Arbeitnehmerüberlassungsgesetz, AÜG).
Distinction. In a genuine service or work contract, the right to direct the workers stays with the service provider.
Disguised agency work. A contract labelled as a contract for work but lived as staff provision is not permitted.
Consequences. By law, an employment relationship with the client is deemed to have been established.
Note: General overview, not legal advice.
Synonyms: Arbeitnehmerüberlassung, Employee Leasing, Staff Leasing