Temporary Employee Leasing from foreign countries to Germany – only for foreign companies
Are you a foreign/international company, with projects/orders in Germany that would like to employ people from your own country? RBO will take care of all formalities for you, including temporary employee leasing.
Many German companies are looking for skilled workers – and many well-trained Eastern European workers would like to work temporarily in Germany and benefit from high wages. Cross-border temporary employment can be an ideal solution for both parties in these cases.
Temporary Employee Leasing from abroad to Germany, for a limited period
Like in any temporary employment relationship (also known as temporary work or employee leasing), there are three parties in cross-border temporary employment contracts, under which workers are hired from abroad to work in Germany. Foreign skilled workers have to apply at a Temping Agency in their home country. The agency finds a position for the candidates at a company in Germany. The Temp Agency remains the foreign citizens’ employer, and pays them their wages. And, in most cases, there are attractive benefits and allowances related to cross-border temporary employment in Germany.
Pursuant to the German Posted Workers Act (AEntG), certain German social standards must also be guaranteed to foreign temporary workers.
That includes minimum wage, holiday entitlements, maximum daily/weekly working hour limits, rest breaks, and safety and hygiene at work.
Lower contributions in the German social security system for temporary contract workers
Since the actual employment contract of temporary workers is subject to the laws of their home country, and they only work in Germany for a limited period of time, foreign temporary workers do not pay social security contributions in Germany. The posting may last for up to 12 months, which period may be extended once for an additional 12 months.
Foreign companies that intend to lease foreign employees to German firms must obtain a permit, not only in their home country but also in Germany. Also the German companies must obtain a permit to be able to employ foreign temporary workers. The leasing company must be the one assuming responsibility. Posted workers must be citizens of an EU Member State or EEA country, or have a valid work permit for Germany.
Temporary Employee Leasing in Germany – strictly regulated.
Depending on the industry sector, a confusing number of special rules may also apply. In many cases, for example, the foreign employers have to report the names of their employees and the duration of their assignment to the customs authorities. The documents are to be prepared in German language, and copies must be kept on-site for inspection by relevant authorities. Failure to comply with the regulations may result in hefty fines.
There are very strict regulations for temporary employee leasing in Germany, particularly in the construction industry. In principle, only foreign construction companies with appropriate permits are allowed to lease workers to German construction firms, while professional employer organizations are not allowed to do so.
Possible alternative solution: Subcontracting
With employee leasing the posted foreign worker becomes integrated into the German company, for the duration of the posting. The boss of the German company is also their boss. Foreign entrepreneurs who wish to benefit from the good economic situation in Germany, but are discouraged by the bureaucratic hurdles related to temporary work, should check out whether there are any alternatives to temporary employment. One option could be to provide services as a foreign subcontractor for a German company, and operate in Germany on a contract basis as a dependent branch.