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Outsourcing and Employment of Foreign Workers in the Hotel Industry

Date: November 2011
 Outsourcing and Employment of Foreign Workers in the Hotel Industry (0,2 MB)
 

Aspects requiring continuing urgent consideration after 1 May 2011

I. The Posted Workers Act and employment of foreign workers
The Posted Workers Act (Arbeitnehmerentsendegesetz, AEntG) currently applies to a total of nine sectors (section 4, AEntG), including building cleaning (since 2007), security and commercial laundry services provided on a contract basis, and waste management including street cleaning and winter maintenance (since 2009). Where the hotel industry is concerned, it should be noted that the AEntG affects not only the sectors covered (directly) by the Act, but also companies that buy services from these sectors.

The provisions on principal liability in section 14 of the AEntG, combined with the administrative offence, mean that responsibility for compliance with minimum wage standards extends to parties who have until now been completely uninvolved. The provisions of the AEntG are thus of considerable importance for the hotel industry, which routinely outsources building cleaning, security and laundry services to external service providers...

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