On 1 June 2016, the German Federal Cabinet officially adopted a draft legislation containing new regulations on employee leasing. This revision and amendment of the regulations on employee leasing is the last major employment-related project provided for in the Coalition Agreement between the two governing parties, SPD and CDU/CSU. Highly disputed within the coalition, this legislative proposal has undergone many changes and amendments before the current Secretary of State for Employment and Social Issues, Andrea Nahles, was able to announce an agreement on 10 May 2016 after a summit meeting of the coalition. Finally, on 1 June 2016, the legislative proposal was discussed and adopted by the Federal Cabinet.

In this Legal Update we summarized the central aspects, which shall come into force by 1 January 2017 according to the draft legislation.

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