EU Court Adviser Says Agency Worker Time Caps Survive Business Takeovers

A legal opinion from the European Court of Justice’s advocate general has clarified one of the trickiest questions in temporary agency work: what happens to the 18?month maximum assignment period when a host company changes hands.

The advocate general ruled on June 11 (Case C?136/25) that the clock does not restart if a business is transferred to a new owner. Both the old and the new host count as the same “hirer” under EU law. Halting or recalculating the time limit, the adviser argued, would let firms bypass the protections meant to stop temporary workers from being used as a permanent, cheaper workforce.

For employers who take over a business with agency staff already on site, the implication is immediate: they must add up how long those workers were deployed by the previous owner. Any period served before the transfer counts towards the 18?month ceiling.

Germany Misses Pay Transparency Deadline

Parallel to that development, Germany has failed to meet the June 7 transposition deadline for the EU Pay Transparency Directive. No national implementing law has passed. Since June 8, the directive has applied directly to public?sector employers.

The core obligations are unambiguous:

• Salary bands must be disclosed before the first job interview.
• Asking about a candidate’s previous salary is prohibited.
• A shift in the burden of proof applies: if employers cannot justify their pay structures as transparent and gender?neutral, discrimination is presumed in any dispute.
• Companies with more than 100 employees face mandatory reporting duties.

The Federal Labour Court (BAG) had already moved ahead of the legislature. On October 23, 2025, it ruled that employees can derive information claims from the principle of good faith (Section 242 of the German Civil Code) when concrete indications of unequal pay exist. A second judgment on February 19, 2026, clarified that claims under the German Pay Transparency Act are plant?specific and refer only to the last completed calendar year.

Collective Agreements Are the Key to Holiday Pay

Departing from the principle of equal pay for equal work remains tightly restricted. The BAG has held that a deviation is valid only if an applicable collective agreement is applied in full. Contractual clauses that undercut the collective framework render the entire deviation void.

The economic weight of collective bargaining shows in a recent analysis by the WSI institute: 73 percent of employees in unionised workplaces receive holiday pay. In non?unionised firms the figure drops to 35 percent. Across Germany’s private sector, about 44 percent of all staff get this bonus – 49 percent of men versus 38 percent of women.

One in Six Workers in the Low?Wage Sector

The political spotlight is increasingly turning to the low?wage sector. In 2025 roughly 16 percent of German employees – some 6.3 million people – earned less than the low?wage threshold of €14.32 per hour. The hospitality industry is hit hardest: half of its workers (51 percent) fall below that line.

To improve conditions, policymakers are relying on extending collective agreements through the declaration of general applicability and strengthening works councils.

Temporary Work Shifts Upmarket

The agency?work sector is itself evolving. While 56 percent of the approximately 800,000 temporary employees still fill unskilled roles, demand for specialised skilled workers is rising. Models such as managed service providing (MSP) are gaining ground – they help companies navigate complex compliance requirements like the 18?month cap and equal?pay rules.

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