Do I get Christmas bonus and vacation pay in temporary employment?

What do these collective agreements say about Christmas bonuses and vacation pay in temporary employment? A large number of working conditions in temporary work are regulated by collective agreements. In particular, the Federal Association of Employers of Personnel Service Providers does this through collective agreements. The Association of German Temporary Employment Agencies, iGZ, includes conditions on Christmas and vacation pay for temporary workers in its collective agreements. These regulations apply to temporary workers whose employment relationships are covered by these collective agreements. We discuss this topic here.

Estimated reading time: 9 minutes

What are the differences in Christmas bonuses between iGZ and BAP collective agreements?

Despite the broad agreement in terms of content and guidelines, there are small but subtle differences in the details of individual collective agreements that temporary workers should be aware of. In particular, the shift on the reference date, the payment modalities and a possible grace period for partial payments can differ depending on the collective agreement. While the fixed salary amount and the length of service are usually undisputed, there may be differences in the time of payment. The iGZ collective agreement even stipulates that the payment periods vary depending on the length of service.

In addition, individual temporary employment agencies also retain the option of additional "basic payments" that are not contractually stipulated. However, this is not only a matter of unequal periods of performance, but also partly due to other criteria of the client companies. It is worth taking a closer look at the company and customer contract, especially for temporary workers from the area of temporary work in Eastern Europe, where assignments change more frequently. If in doubt, talk to the pay scale provider to get a better idea of the realistic amount.

What are the conditions for entitlement to special payments?

There are 3 conditions that must be met before the Christmas bonus and vacation pay can be paid out:

• Duration of employment: You must have been continuously employed by your temporary employer for at least six months.
• Employment relationship not terminated: The employment relationship must not have been terminated at the time of payment.
• Key dates: June 30 and November 30 of each year are decisive cut-off dates. June 30 is decisive for vacation pay and November 30 for Christmas pay.
  These points are clearly described in the collective agreement and apply to the majority of temporary employment relationships.

How high are Christmas bonuses and vacation pay in temporary employment?

The amount of the special payments is staggered and depends on how long you have been with the company:

• After 6 months: € 200 gross
• In the 2nd and 3rd year: € 300 gross
• From the 4th year: 400 € gross

These cumulative amounts for vacation and Christmas bonuses are the same in all four cases. You can find statistics on bonuses at Statista.

How does an industry surcharge affect Christmas and vacation pay in temporary employment?

One factor that is often not taken into account with regard to special payments is the so-called industry supplement. This is a supplement that is applied to temporary workers in certain industries such as metal, chemicals or the automotive industry. It guarantees that your hourly wage will be raised to the level of permanent staff, even if this happens gradually over a longer period of time. Although the industry supplement primarily affects the hourly wage, it also has an indirect impact on Christmas or vacation pay for people in temporary employment. This often affects the overall income level, especially if an average income has already been set as the basis for calculation.

Some collective agreements even insist that you are entitled to the industry supplement when calculating the Christmas bonus. This means that someone who has worked in a client company that is bound by collective agreements with industry supplements not only receives a regular salary, but also increases their special payment entitlement in a company that is bound by collective agreements. It is therefore important that you as a temporary worker are aware of these supplement regulations and their impact on Christmas or vacation pay, especially if you have a well-paid job in one of the many manufacturing sectors.

When are the special payments made?

The basic payment dates are set out in the collective agreements: 

• Vacation payVacation pay is due with the payroll for the month of June.
• Christmas bonusThe Christmas bonus is due with the payroll for the month of November.

It is therefore very important for you that the above-mentioned conditions are met at these times in order to receive the payments.

What role does length of service play for special payments in temporary employment?

Another decisive criterion for the payment of vacation pay and Christmas bonuses in temporary employment and all temporary employment models is the length of your employment with the temporary employment agency. Collective agreements usually regulate this via the so-called length of service - i.e. the length of time you have worked continuously at the same company. As a rule, there are staggered entitlements, i.e. entitlements that increase over time.

This may seem difficult at first glance, but it is, because an employee in temporary employment is often employed by the same temporary employment agency for years, even though they regularly change companies. This is exactly where continuity is required. Please also note that sometimes even short interruptions, including unpaid vacation or sick leave, do not have the same entitlement. Be sure to read the BAP or iGZ collective agreement to find out under which circumstances an entitlement expires.

How do union members also benefit?

Members of trade unions are entitled to receive additional special payments. Depending on the length of membership and length of service, member excess payments are structured as follows:

• After 6 months100 after 6 months, in addition to vacation pay and €100 in addition to the Christmas bonus.
• In the 2nd and 3rd year200 € in addition to vacation pay, € 350 in addition to Christmas bonus
• From the 4th year350 € in addition to vacation pay, 500 € in addition to Christmas bonus

These payments must be applied for in good time. There are also restrictions in the event of dismissal and with regard to pro rata payment for part-time work.

What happens in the event of termination or part-time employment?

It is important to know what happens if you terminate this contractual relationship. Here are a few points:

• TerminationIf your employment contract has been legally terminated at the time of payment, you are not legally entitled to special payments.
• Part-time employmentIn the event that your employment contract was concluded on a part-time basis, you are entitled to the special payment in proportion to the percentage of your agreed working hours as set out in the contract.

These are all important factors that should be taken into account when considering whether you are entitled to special payments.

How does Temporary Employment International help with questions about special payments?

Zeitarbeit International is an experienced partner for temporary workers, especially for workers from Eastern Europe. We offer comprehensive support and advice on all issues relating to your employment contract, collective agreements and special payments, as well as questions about Christmas bonuses and annual leave. With our knowledge and experience, we help you to know your rights and to enforce them in case of doubt. About us >>>

As a temporary employee, you are entitled to a Christmas bonus and vacation pay under certain conditions. The amount and payment modalities are set out in the collective agreements and depend on your length of service. Trade union members can also receive extra payments. It is important to know the conditions and deadlines in order to meet your entitlements.

---

Do you have any questions?