This podcast summarises a European Court of Justice ruling (C-441/23) concerning the application of the EU's Temporary Agency Work Directive and its Swedish equivalent. The case involved a consultant employed by Leadmarket and working for Microsoft. The court clarified the scope of the directive, finding that it applies only when a company provides staff whose work is directed and controlled by the client company. The ruling significantly limits the 24-month rule requiring client companies to offer employment or compensation to temporary workers. The court determined that Leadmarket did not qualify as a temporary agency under the directive, meaning the 24-month rule did not apply in this case. Key Findings of the Ruling:
The ruling clarifies that the TAWD's scope is narrower than previously assumed. This significantly limits the obligation of client companies to offer employment or compensation to specialist consultants after 24 months.
Background of the Case:
LM, a pregnant consultant employed by Leadmarket, provided marketing services for Microsoft from August 2017.
Microsoft terminated the service agreement with Leadmarket in September 2020.
After periods of sick leave, parental leave, and vacation, LM was dismissed before returning to work.
LM argued that the dismissal was unfair and that Microsoft was also liable as her de facto employer.
The Spanish Labour Court ruled that LM was not "hired out" as Leadmarket organized her working time, paid her salary, provided training, granted leave, and managed her maternity leave.
Crucial Points of Contention:
While the Spanish court acknowledged Microsoft's control over LM's daily work, providing her with a computer, requiring regular contact, and granting access to their headquarters, it also highlighted Leadmarket's retained control over work reporting, vacation approvals, and working hours. This ambiguity led to the referral to the EU Court.
Key Takeaway:
The ruling clarifies that traditional consultancy firms, like Leadmarket, employing consultants to perform diverse service deliveries are not considered temporary work agencies under the TAWD.
Defining 'Hired-Out Worker':
The ruling stresses that a hired-out worker is placed under the subordination of the client company while maintaining an employment relationship with the agency. The assessment of this subordination must consider the specific circumstances of each case.
Key Takeaway: The receipt of monthly activity reports by the agency from the worker is not, in itself, sufficient to establish a relationship of subordination.
Defining 'Client Company': The court clarified that to be considered a client company, the entity must have the authority to direct and control the work of the temporary worker, including imposing internal rules, work methods, and monitoring performance. Merely controlling the work outcome or providing general instructions is insufficient.
Key Takeaway: For the Uthyrningslagen to apply, the client company must possess the competence and resources to determine, supervise, and control how the consultant performs the work.
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Concept & Research by: Deepak Kamboj
Disclosure:This podcast is a collaborative effort combining human expertise and cutting-edge AI technology. Research and topic curation were conducted by Deepak Kamboj, providing a solid foundation of industry knowledge. The deep dive and audio narration have been AI-generated, ensuring consistency and precision in delivering the content. Tune in for an innovative blend of expertise and technology!
May 28 20257 min