Posting of Employees Abroad by German Companies

German Employment Lawyers

Posting of Employees Abroad by German Companies

German Employment Lawyers

Nowadays, employee postings are an integral part of the business world and must be included in labour law due to the reality of the world of work. However, as with purely national employment relationships, there are also links to German social security and tax law.

At Schlun & Elseven Rechtsanwälte, we are a full-service German law firm with specialist lawyers in employment law. We advise clients worldwide in their dealings with German law.

 

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Support for Companies with Posting Employees Abroad

Increasing globalisation opens markets and, at the same time, increases competitive pressure. It is necessary to deploy workers internationally to achieve or maintain market positions.

A company and an employee should consider the benefits and disadvantages of posting abroad. Posting an employee abroad may assist a subsidiary in another jurisdiction and provide your employee with more experience, which they can bring back to your company afterwards. Moreover, experiencing the work culture in another part of the world can be a considerable advantage in global business.

Considering the relevant regulations, we want to support you in making posting employees abroad a successful experience while minimising the risks. Therefore, our lawyers will advise and assist you in preparing the necessary contracts or agreements. We are also happy to check existing contracts and conditions regarding a posting abroad.

Even if the stay abroad does not run smoothly or disagreements regarding the reintegration into the original business have arisen, we offer the legally proper support needed to solve the conflict. Here are some of the services we provide in this field:

  • Advice regarding insurance coverage, prevention of a double burden,
  • Review of relevant tax and social security obligations
  • Advice and development of a well-thought-out concept for a posting, especially regarding the corresponding contractual construction
  • Contractual analysis and advice,
  • Counsel and support in applying for the required visas.

For more specialised assistance in your situation, don’t hesitate to contact us directly using the contact form below this article. Our lawyers look forward to working with you.

German Employment Law and Foreign Postings: Legal Advice

German employment law plays a significant role during the employee’s posting abroad.

The existing employment contract with the German entrepreneur can be put into a dormant mode (suspension agreement) and replaced by a secondment agreement for the period of posting to the foreign subsidiary. It is also possible that the original employment contract may contain a posting clause. The general provisions of the employment contract are therefore used to review this agreement.

  • The employment contract – the foundation of the employment relationship

Due to the particular situation, the following aspects must also be contractually agreed upon for postings abroad lasting more than one month per § 2 (2) NachweisG

  • Duration of posting abroad,
  • Currency in which the remuneration is paid,
  • Additional remuneration or benefits in kind resulting from the stay abroad,
  • Conditions for return.

It is recommended that specific topics also be contractually regulated. These include, for example, the bearing of costs in the event of an early return, choice of legal jurisdiction in disputes, continuity of occupational pension provision, reimbursement of additional expenses or the assumption of further costs incurred.

When making such decisions as to which legal jurisdiction will oversee the contract, bear in mind aspects such as unfair dismissal law, notice periods and, more generally, the strength of employment law within that jurisdiction, whether or not a specific arrangement is appropriate must be decided in each case. Working with an employment law expert is the best way to determine what should be negotiated.

There are many different contractual considerations to bear in mind in the context of the posting of employees abroad. Whether the agreements reached fit together smoothly so that neither the employee nor the employer is at a disadvantage also varies from case to case and requires close examination. Looking to undermine employee protection through postings abroad can lead to legal issues for companies and contribute to poor motivation within the company.

When bringing in employees from foreign subsidiaries into Germany, it should be noted that exceeding the minimum standards is expected. The posting of foreign employees must be measured against the Employee Posting Act (AentG), the Minimum Wages Act (MiLoG) and the Temporary Employment Act (AÜG).

If their consideration is incomplete, this can lead to severe fines of up to € 500,000 (§ 23 AentG). In addition, the official basis for gainful employment in the form of a visa must also be created here.

Immigration Law Aspects of Posting an Employee Abroad

When posting an employee abroad, it is vital that they can work in that other jurisdiction. Regarding posting German employees abroad, this will not be an issue should the posting be in the European Union. German citizens can work and live in other EU jurisdictions as EU citizens. This arrangement also applies to sending EU citizens to work in Germany.

However, should the posting be further afield, parties involved must consider other considerations. Such considerations primarily concern the visas for these jurisdictions. The visas which need to be applied for will depend on factors such as:

  • the jurisdiction in question,
  • the nature of the work,
  • how long the posting of the employee abroad will last,
  • the qualifications of the employee.

Applying for the wrong visa and other bureaucratic issues can result in a slowdown of the process and a delay in posting employees abroad. Working with an experienced legal partner will ensure that the proper precautions are taken, and the deadlines are not exceeded.

Our lawyers are experts in the field of immigration and business immigration matters. We have comprehensive experience in this field and will gladly assist you with this issue. However, specialised assistance is required when moving from more generalised aid to helping you in your specific case.