E pluribus unum - Unified Collective Agreement for Temporary Agency Workers

As of January 1, 2026, a significant new development will take effect in the German temporary employment sector: Following the merger of the Federal Employers' Association of Personnel Service Providers (Bundesarbeitgeberverband der Personaldienstleister e. V. - BAP) and the Association of German Temporary Employment Agencies (Interessenverband Deutscher Zeitarbeitsunternehmen e. V. - iGZ) to form the General Association of Personnel Service Providers (Gesamtverband der Personaldienstleister - GVP) in 2023, a uniform collective agreement for the entire temporary staffing industry was created for the first time with the German Trade Union Confederation (Deutscher Gewerkschaftsbund - DGB). The new DGB/GVP collective agreement replaces the previous BAP and iGZ collective agreements, introducing – after a long period of coexistence – standardized working conditions for temporary agency workers. Moreover, a new collective wage agreement was reached: between October 1, 2025 and December 31, 2025, the existing wage agreements (DGB/BAP and DGB/iGZ) will continue to apply, and as of January 1, 2026, the new DGB/GVP wage agreement will come into effect nationwide. The following article provides an overview of the scope of application, essential changes, and highlights which steps personnel service providers and user companies now need to take.

Scope of Application: Who Is Covered by the New Agreement?

The new DGB/GVP collective agreement applies from January 1, 2026 to all employment relationships where the employer is a member of GVP and the temporary agency worker belongs to one of the DGB unions. However, dynamic reference clauses in employment contracts – which refer to the employer’s current collective agreement or the current version of the previous agreements (DGB/BAP or DGB/iGZ) – are of greater practical relevance, given the generally low union membership among temporary agency workers. In such cases, the new DGB/GVP agreement will automatically apply from 2026.

If a contract contains only a so-called static reference (i.e. referring to a specific version of the BAP or iGZ collective agreement), then this agreement continues to apply, and the new DGB/GVP contract is not adopted.

What Exactly Is Changing? – Key Points of the New Collective Regulations

The new DGB/GVP collective agreement brings the following main changes:

• Working Time Model with transitional regulation: In future, a standardized monthly working time of 151.67 hours (equivalent to a 35-hour week) will apply to full-time staff. For those previously working under the iGZ agreement: the variable working time model may (until December 31, 2029) still be applied to old employment relationships, but only for employers who are also GVP members. If the new uniform collective agreement applies by reference clause only, such agreements must be concluded with the workers if the variable model is to continue.
• Travel Time & Accommodation Costs: If the single journey from the employee’s home to the deployment site (when using public transport) outside of working hours exceeds one hour and fifteen minutes, the time exceeding this must be paid. If travel time exceeds two hours, the worker may demand reimbursement and organization of hotel accommodation.
• Notice Periods: For iGZ users, new notice periods will apply during the first six months of employment. In the first three months, contracts can be terminated with a one-week notice period, and from the fourth to the end of the sixth month with two weeks’ notice. Upon new hires (where there has been no employment contract for more than three months), a one-day notice period may be agreed upon for the first two weeks. These apply regardless of any probationary period.
• Fixed-Term Contracts – Return to Law: The previously possible four extensions of a fixed-term contract without cause over two years (BAP) are abolished – now only the legal three extensions are allowed. For BAP users, a transitional period applies: contracts may be extended up to four times until December 31, 2027.
• Flexible Special Working Hours at Client Sites: Company or collectively agreed special provisions on working times and rest periods at client sites now automatically apply to agency workers as well. Previously, this did not apply to iGZ users and enables more flexible assignments, especially in hospitals.
• Employees Above Collective Agreement (AT): Agreements with employees who are remunerated above the highest pay group may, to the detriment of the temporary agency worker, now only be permitted with respect to remuneration provisions. For BAP companies, this is a significant tightening compared to previous practice allowing negative deviations from all provisions.
• Working Time Accounts – Limits and Insolvency Protection: Working time accounts may in future have a maximum credit of 200 (exceptionally 230) hours. Rules on when employees may claim payment for accrued hours will change. Importantly, credits exceeding 150 hours must be protected against insolvency, and evidence must be provided to the employee.
• Bonus Payments – Night Shift Premiums from the First Hour: For iGZ users, night shift bonuses must now be paid from the first hour (23:00 - 06:00). The bonus rate is based on the user companies’ rates but is capped at 25%. The same applies – capped at 50% or 100% – for Sunday/holiday work.
• Termination at Standard Retirement Age: New for BAP users, the employment relationship will now end automatically at the end of the month when the employee first qualifies for an unreduced statutory pension. Pre-existing contracts (prior to January 1, 2026) are not affected.

The New Wage Agreement: Three Pay Raises by April 2027

On September 12, 2025, the DGB and GVP reached a new wage agreement for approximately 650,000 temporary agency workers in their second round of negotiations. The previous wage agreements will be replaced on January 1, 2026 with the new DGB/GVP wage agreement.

The new agreement provides for three successive wage increases between January 2026 and April 2027 – hourly pay will increase by an overall total of 9%:

• From January 1, 2026: +2.99%
• From September 1, 2026: +2.50%
• From April 1, 2027: +3.50%

Furthermore, union members with at least six months’ membership will receive a “membership advantage”: upon request to their employer, they can receive a supplement to their holiday and Christmas bonus.

The so-called industry surcharges (e.g. for employees in the metal and electrical industries or the textile and clothing industry) were not included in this wage agreement. These are negotiated separately by the respective sectoral unions and GVP and are currently still subject to ongoing negotiations.

This new wage agreement means a noticeable pay rise for agency workers. The staggered increases until April 2027 will somewhat cushion the effects on personnel service providers.

What Needs to Be Done Now?

Personnel service providers are now required to adapt their employment contract language and internal processes to the new DGB/GVP collective agreement.

It is advisable to thoroughly review the wording of current contract templates – especially the reference clauses. No contract provisions may be less favorable to temporary agency workers than the new collective standards; otherwise, equal treatment cannot be lawfully excluded. Existing contracts or supplementary agreements should also be carefully reviewed and, if necessary, amended before the new rules take effect on January 1, 2026. For contracts concluded before January 1, 2026, care should be taken to ensure they already contain a provision that triggers automatic application of the new DGB/GVP collective agreement as of the effective date.

In summary:

• Employment contract templates must be updated in accordance with the new rules.
• Internal systems, especially for working time accounts, bonuses, and insolvency protection, must be adapted – failure to do so carries significant liability risks.
• If necessary, contracts with user companies should be amended to respond to increased costs.

User companies should also ensure that their personnel service providers comply with the new collective rules. If the new regulations are not properly observed, equal pay/equal treatment cannot be effectively waived; in this case, from their first day of assignment, the agency worker is entitled to all key working conditions – including pay – applicable to comparable employees in the user company. Should insufficient pay be provided, user companies can be held subsidiarily liable – according to § 28e (2) sentences 1 and 2 SGB IV as well as § 150 (3) sentence 1 SGB VII – for total social insurance contributions, and jointly and severally liable for payroll tax under § 42d (6) sent. 1 and 2 EStG, relating to the shortfall in pay.

Conclusion

With the new DGB/GVP collective agreement, personnel service providers cannot avoid a comprehensive review of their contract landscape and HR processes. It is advisable to start updating employment contract templates and workflows in good time to ensure compliance and a smooth transition in 2026. The same applies to user companies in respect of their agency staff and any framework agreements with personnel service providers.