Employer of Record Germany
INS Global offers a variety of options for businesses looking to hire personnel in Germany. With our professional employer organization (PEO) and payroll solutions, we can handle all the complex administrative, tax, and compliance obligations of an employer, allowing you to focus on growing your primary industry in Germany.
German Labor Laws
AÜG Labor Leasing License in Germany
INS Global Germany operates under the labor-lease license (Arbeitnehmerüberlassung – AÜG) recognized by the German leasing labor authorities. However, our license limits us to deploy employees to the same end-client for a maximum of 18 consecutive months.
Employment Contracts in Germany
German employers are required by law to provide official employment contracts to workers. These contracts must include all employment terms such as pay (in the local Euro currency), termination policies, and benefits. After we engage workers and become their official Employer of Record in Germany, we can offer them a temporary or permanent employment contract.
Offering a temporary contract for 18 months can help avoid the need to terminate their contract, which can be difficult to do after the probationary period. However, many workers may prefer a permanent contract. Ultimately, the decision of the contract duration lies with the end-client and the employee. It is important to note that if the employment contract exceeds 18 months or is permanent, the deployment to the end-client can only last a maximum of 18 months.
Hours of Work in Germany
In Germany, workers generally work from Monday to Friday for a maximum of eight hours a day and 48 hours a week. The law limits overtime to 12 hours per week.
National Holidays in Germany
In Germany, there are nine national holidays on which most workers are entitled to time off from work. Additionally, there are several regional holidays, such as Three Kings Day and Corpus Christi, which may or may not be observed in your particular area.
Employment Benefits in Germany
It is important to be aware of the legal entitlements and benefits that your employees in Germany are entitled to receive.
Travel Time to Germany
Employees who work a five-day week are entitled to 20 days of annual leave, while those who work a six-day week are granted 24 days. However, many companies offer between 25 and 30 days as a minimum. A year-end bonus is another benefit that many companies provide, although it is not mandatory by law.
Social Benefits in Germany
In Germany, employers and employees must equally contribute to a social security system that provides benefits such as pensions, health insurance, unemployment insurance, and more. While accident insurance is also required, it is solely the employer’s responsibility to provide. An employer’s total contribution to mandatory social benefits is typically 20% of each employee’s income.
In addition to these required benefits, many companies also offer additional perks such as housing assistance, private health insurance with greater coverage, and other benefits.
Sick Leave in Germany
German workers are entitled to a minimum of six weeks of paid sick leave, provided they can provide a doctor’s certificate. After this time, workers will receive at least 70% of their pay through their health insurance.
If you need assistance with navigating German employment laws and regulations, the experts at INS Global are here to help.
