Using an Employer of Record in Germany
Thankfully, commonly shortened to AUG license, an Arbeitnemeruberlassung License is required to compliantly employ people via a labour leasing model in Germany. As described by German law firm Schlun & Elseven Rechtsanwälte, “Employee leasing without the AUG license is a risky business and can lead to fines and other serious penalties”. Here at Agility EOR, we focus on ensuring our clients are confident that employing via our solution is fully compliant with local labour laws. That’s why we are the proud holders of the AUG license for German labour leasing.
Unsurprisingly, complying with German labour leasing legislation means sticking to some very strict rules. Among the headlines are “no chain leasing”, meaning the client must contract directly with our licensed German entity, “equal treatment”, meaning leased labour cannot be disadvantaged versus directly employed staff, and a time limit on how long a business can used leased labour.
Businesses looking to have employees in Germany might also like to know that;
- In Germany, it is common for employees to have a high degree of job security. This is due in part to strict laws governing termination of employment, which generally require a valid reason for dismissal and provide significant notice periods and severance pay.
- If you offer a bonus to your employees in Germany, it is vital to ensure that the wording in the contract is clear and unambiguous in respect of how much they can get and what actions qualify the employee to receive it.
- In recent years, Germany has become a leader in promoting work-life balance and flexible working arrangements. Many companies offer options such as part-time work, job sharing, and telecommuting, and there is a growing emphasis on creating a healthy work environment that supports employee well-being.
Agility EOR’s consultative approach will help you navigate the nuances of having employees in Germany. Our Employer of Record services run from the provision of employment contracts, through a fully managed onboarding, to ongoing elements such as payroll and HR advice. We enable you to hire quickly and to know that you are doing so compliantly.
And if you haven’t found the right person to hire in
Germany, our Global Staffing solution could be for you. Utilising our network
of recruitment experts, we can help you find talent across all sectors and
Get in touch with our friendly team to learn how Agility EOR can help you successfully grow in Germany.