International temporary employment – ​​we sued for over one million euros!

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In a case involving international temporary employment (Arbeitnehmerüberlassung), we sued the leasing employer (Entleiher) in the USA, together with the user company (Entleiher) in Germany, for payment of salary and allowances totaling more than 1.3 million euros.

The case is currently being heard at the Wiesbaden Labor Court.

The background to this is the temporary employment of an employee of a US corporation to its subsidiary in Germany. This temporary employment was flawed. Among other things, the leasing company lacked the necessary permit. The consequence of illegal temporary employment is that the employment contract with the leasing company is invalid, and an employment relationship with the user company (here in Germany) is fictitious. The temporary worker then has the right to be treated as if the contract between him and the leasing company is valid.

The leasing company and the user company are jointly and severally liable for the temporary worker.

The special feature of this case is that this employee (my client) was also appointed managing director of the subsidiary. Nevertheless, the Temporary Employment Act (AÜG) applies, as the European (and not the national) definition of employee applies here. And the highlight is that we were also able to sue the parent company (the leasing company) in the USA in a German labor court.

The case addresses all the peculiarities of the Temporary Employment Act (AÜG), including questions regarding jurisdiction and applicable law when no choice of law has been made. This is the case with American employment-at-will contracts (concluded verbally, terminable at any time without giving reasons). Furthermore, it addresses the question of when managing directors (Geschäftsführer) have an employment relationship. This is a topic that I deal with very often. The decision is eagerly awaited. I will report back.

Are you a managing director or employee and are having difficulties with your employer? Please feel free to contact us at any time. I would be happy to advise you!