Ruling on temporary employment agency costs during the lockdown

If the work for which you have hired personnel disappears due to exceptional circumstances, the question arises as to who bears the costs. In the case of a hiring or temporary employment agreement, this depends heavily on the contract: a good risk and force majeure clause determines whether you still have to pay for hours not worked.

Hiring out staff

If you hire personnel through an employment agency or supplier, you enter into a hiring or provision agreement. This agreement specifies, among other things, the rate, the duration, and what happens if there is less or no work. It is precisely this last point that proves crucial if there is suddenly no work left.

Who bears the risk of job loss?

Whether you must continue paying if work ceases depends on the contractual allocation of risk. Often, the risk of insufficient work lies with the hirer, unless otherwise agreed. A plea of ​​force majeure is unlikely to succeed: the fact that performance becomes more expensive or pointless is usually insufficient. The question is whether the lack of work falls within your sphere of risk.

The importance of a good agreement

A clear hiring agreement prevents surprises. Specify what happens in the event of work ceasing, whether a minimum purchase applies, and what termination or cancellation options are available. Without these agreements, you fall back on general rules, which often work to the hirer's disadvantage.

What can you do?

If you are the hirer, assess the risk and force majeure clauses in advance and negotiate them. If you are the lender, ensure that your terms clearly stipulate that purchased or reserved capacity is paid for. In the event of a dispute, sound substantiation of the contract is decisive.

Frequently Asked Questions

Do I have to continue paying hired workers if there is no work?

That depends on your hiring agreement. Often, the risk of insufficient work lies with the hirer, unless otherwise agreed.

Can I invoke force majeure?

Usually not quickly: the fact that performance becomes more pointless or more expensive is generally insufficient. The determining factor is whether the loss of work falls within your sphere of risk.

How do I avoid arguments?

With a clear secondment agreement that regulates loss of work, minimum purchases, and termination.

Want to properly arrange your secondment or temporary staffing contract?

Our legal experts draft or review watertight secondment agreements. View our employment lawor contract lawteam, or schedule a free consultation.