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Contracting in Germany remains resilient during Covid-19
by Susie Hughes at 10:55 20/10/20 (News on Business)
Opportunities for contractors in Germany have remained resilient despite the economic impact of the global pandemic, according to a study from agency group, APSCo.
The research revealed that three in five contractors in the country were still actively engaged in the last week of July 2020. The majority of those not actively engaged at the height of the outbreak in Europe cited Covid-19 closures as the main reason for the drop in work.

While it is encouraging that the majority of contract professionals were still employed at this time, respondents reported a decline in both hours and rates, with 60 per cent recording less time worked and 45% reducing their rates.

Independence

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The data also indicated an overwhelming desire from respondents to remain independent despite the uncertain economic climate in Germany. Three quarters of independent contractors surveyed would not accept an AÜG role, moreover 59 per cent stated they would reject the AÜG model outright as a realistic means of supplying their specialist talent to the economy. (AUG - Arbeitnehmerüberlassung - is a form of labour-leasing licence in Germany)

Only 15 per cent of those contractors not actively engaged were making claims for financial support through the Kurzarbeit (a form of reduced working time with some Government financial support).

Tremayne Elson, Managing Director of APSCo Deutschland, said: “It’s been an incredibly tough year for everyone, but contractors have arguably been one of the hardest hit. With projects being put on hold during lockdowns, freelancers faced a potential strain on finances, but as always, the contracting community in Germany has really demonstrated a great level of resilience.

"To see so many still actively engaged – and keen to remain independent despite the temptation of job security through the AÜG staff leasing model – is a very encouraging sign for the future of contractor recruitment in the country."


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Susie Hughes © Shout99 2020


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