A temporary employment contract is a normal employment contract, only the places of employment change frequently in traditional temporary employment relationships. The temporary employment contract thus differs significantly from a fixed-term employment contract, which actually ends on a fixed date, provided it is not renewed.
The temporary employment contract is a fixed employment contract
Actually, it should not be difficult to take out a loan with a temporary employment contract. Although the place of deployment can change regularly, the entitlement to the salary payment remains even for short-term non-employment due to a shortage of work. In contrast to other wage earners, the monthly income of temporary workers is mostly fixed, as overtime and non-working time lost hours are charged to the working time account, while direct employees often have a contract with a weekly working hours allowance that is not allowed in the temporary employment sector.
Frequently, temporary workers themselves reject their loan application by denying the question of permanent employment. In fact, although they are not permanent employees of the borrower, but they are at the temporary employment agency. Anyone who takes out a loan with a temporary employment contract may therefore pretend to be in permanent employment. A bank employee would notice the misrepresentation made in the loan application for his own disadvantage, but the automatic processing of loan applications made on the internet will lead to a rejection.
The income of temporary workers
Temporary workers have a secure income, especially as their industry has a minimum wage. Although temporary workers are among the less well-paid employees with this minimum wage, depending on the field of application, they are not lower or even higher than the hourly wage of a borrower’s core workforce. After a probationary period of six months, the statutory notice periods also apply to temporary workers. The probationary period refers to the employment contract with the temporary employment agency and does not restart after each change of location.
This was taken for granted at the end of the twentieth century, even though courts regularly collected the invalidity of a corresponding renewal clause for the probationary period. Thanks to the permanent employment contract, the credit security of temporary workers is no less than that of other employees. Concerns about lending with a temporary employment contract are also partly due to the poor image of a temporary work agency as an employer.
This image was partially justified until 2011, and now temporary employment agencies are under much greater pressure to control than any other employer. The fact that some banks continue to give a loan with a temporary employment contract restrained, thus appears as not professional, especially since they do without this behavior on possible customers. The fact that the labor income of temporary workers, despite the minimum wage, is lower than the average income does not speak against lending. Prerequisite is only a sufficiently long term of the temporary worker loan, so that this can afford the resulting reduced monthly loan installment.