New EU ruling on the Temporary Agency Workers Directive provides clarity for TechSverige members  

A new ruling from the European Court of Justice provides clearer guidance on who is covered by the Staffing Directive (2008/104) and thus the Temporary Agency Work Act, which is of great importance to TechSverige's members.   

In accordance with TechSverige's advice, the distinction between staffing and service provision is clarified. The Court states that there is no requirement for a certain number of temporary workers for a company to be considered a temporary employment agency. On the other hand, it is not sufficient for an undertaking to place one or other of its workers, or occasionally some of its workers, at the disposal of another undertaking in order for it to be classified as a temporary agency. Such an operation is more akin to the provision of a service than to the hiring out of workers.  

Furthermore, it is emphasized that the Directive applies to undertakings whose activity is to conclude contracts of employment with workers for the purpose of hiring them out temporarily to client undertakings to work in those undertakings under their control and direction. This clarifies that, under the Directive, the activity of a temporary agency - whether or not it is its main activity - is to supply other undertakings with workers under their direction. Traditional consultancy firms that hire consultants for the purpose of participating in mixed service provision thus do not meet the criteria to be a temporary agency under the Directive.  

The judgment also clarifies what is required for there to be a question of staffing, i.e. when a temporary worker is considered to be working under the control and direction of the client undertaking. It is required that the worker is under the control and direction of the user undertaking by virtue of the fact that the latter requires the worker to perform the services to be provided, the manner in whichthe work is carried out and compliance with the instructions and internal rules of the undertaking, and supervising and controlling the way the same worker carries out his tasks.  

- We feel confident through the judgment in our interpretation of the scope of the Rental Act and the advice we give to our member companies," says Karolina Löf, General Counsel at TechSverige.  

TechSverige will hold a free webinar on Tuesday, October 29 at 8.45-9.30 to further review and analyze the judgment.

Read more:
In-depth advice on the Rental Act