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There is very little that causes more unease among International Recruitment Agencies than the question of whether or not they are potentially on the hook if their contractors or service providers fail to comply with the tax law in the country in which the contractor is working. The confusion on this matter is exacerbated by the fact that international umbrella companies with different methodologies tend to spread different messages around the market place. Also, tax risk is often confused with labour law risk.

"Give me solutions, don't give me problems". This is a common mantra from many agencies when dealing wiith suppliers. The imperative to keep a prospective contractor happy conquers most other considerations when seeking to complete a placement. The general term now used by the industry for International Umbrella or Management Companies is "Solution Provider". However, it is important that agencies should tread with care here. Otherwise, your short term "Solution Provider" could become your long term "Problem Provider".

The German Court Ruling on 1st March relating to the CGZP (the main Union negotiating Collective Bargaining Agreements for Temporary Agency employees) has created a great deal of speculation and uncertainty in the Staffing Industry in The UK among agencies actively engaged in the German Contract Market.

Germany is the second largest market in Europe for fixed-term contracts after the UK. The current German government regards fixed-term contracting as a vital element in a flexible labour market and actively promotes the use of temporary labour (in spite of the fact that it is not popular with the trade union movement).

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