← BlogFebruary 2, 20245 min readEditorial teamDEUAENRU
For businesses
Contract for work, service contract or temp agency work: the differences
Three contract models, three different duties. Anyone using external staff should know exactly what is owed — and who gives the instructions.
Contract for work – Werkvertrag (§631 BGB)
The contractor owes a result, e.g. cleaned rooms or installed modules. They organise the work themselves, and their employees stay integrated in their own business. Payment is for the result, after acceptance.
Service contract – Dienstvertrag (§611 BGB)
Here an activity is owed, not a success — for example consulting. The provider works free of instructions; pay depends on time or effort.
Temporary agency work (AÜG)
The agency makes employees available who work in the client’s business under the client’s instructions. The agency needs a licence. A maximum assignment period (18 months) and equal pay after nine months apply.
Telling them apart: what matters
- Right to instruct: who steers the work in detail?
- Integration: do the people work in the client’s business like its own staff?
- Result: is a clearly defined result agreed?
- Risk: who bears the risk if the result fails?
Why it matters
If a contract for work is run like temp agency work in practice, it is called disguised agency work. Consequences can include fines and a deemed employment relationship with the client.
Conclusion
Choose the model by the task, not by price. If in doubt, get advice and document the distinction carefully.
FAQ
When does a contract for work fit?
When a clearly defined result is owed, such as room cleaning to a specification.
May I instruct the contractor’s employees?
Detailed instructions belong to the contractor; you define the result.
What is disguised agency work?
When a contract for work is in fact run like temp agency work.
How long can agency work last?
In principle up to 18 months per worker.
