External personnel are workers who, rather than being directly employed by the company for whom they currently work, are temporary workers, freelancers or some other kind of third-party employee. In essence, they are individuals who perform activities on the basis of service or work contracts. In contrast to a company's regular employees, external personnel generally are not entitled to the benefits granted by German labor law, such as statutory protection against dismissal, continued payment of wages in event of illness or paid leave.
Partly due to the current labor market's very limited supply of highly-qualified specialists willing to work as employees in some areas, and partly due to the increasing demand for flexibility, there is currently considerable need for external personnel. The engagement of external personnel is also a very popular choice for companies because it keeps them unfettered from certain parts of labor law, reduces the costs associated with hiring and terminating directly employed personnel and decreases the need for personnel management. Companies can instead concentrate on their own core competencies and thus work more efficiently. The engagement of external personnel also provides easier access to external know-how.
Visit us at mayerbrown.com
Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.
© Copyright 2019. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.