An Employer of Record Germany
Any firm wishing to recruit personnel in Germany may choose from a number of alternatives provided by INS Global. You may outsource all of the complicated administrative, tax, and compliance obligations of an employer with the help of INS’ German professional employer organization or Germany Employer of Record, and payroll solutions. You may now concentrate on growing your primary industry in Germany.
German Labor Laws
German AÜG Labor Leasing License
The German leasing labor authorities see the labor-lease license (Arbeitnehmerüberlassung – AÜG) that INS Global Germany operates under as a temporary employment option.
However, we are only permitted to deploy the employee to the same end-client for a maximum of 18 consecutive months owing to our AÜG licensing.
employment contracts in Germany
In Germany, employers are obliged by law to create official employment contracts for workers. These contracts should include all of the conditions of employment, including pay (in the local Euro currency), policies on termination, and any perks.
We may offer workers a temporary (fixed-term) or a permanent employment contract after we engage them and are recognized as their official Germany Employer of Record.
Giving an employee a temporary contract with a lifespan of 18 months may be useful in preventing the need to terminate their employment contract, which is not something that is simple to do after they have completed the probationary period. Although this ideal situation helps prevent any issues down the road, many workers are reluctant to accept a temporary contract.
Due to this, it is really up to our end-client and the employee to decide how long the contract should last. However, it is important for all parties to be aware that if the employment contract is for a duration longer than 18 months or is even permanent, the deployment to the end-client can only last for a maximum of 18 months.
hours of work in Germany
In Germany, workers typically work Monday through Friday for a maximum of eight hours and 48 hours every week. There is a statutory limit of 12 hours of overtime each week.
Germany’s national holidays
In Germany, most workers get the following nine national holidays off from work:
In addition to these nine days, there are a number of regional holidays, such as Three Kings Day and Corpus Christi, which may or may not be observed in your area.
Germany’s employment benefits
You must be aware of the advantages to which your German workers are legally entitled or are entitled to anticipate.
Travel time to Germany
In Germany, employees who work five-day weeks are entitled to 20 days of yearly leave, while those who work six-day weeks are granted 24. But most firms provide between 25 and 30 days of yearly vacation as a minimum. A year-end bonus is another benefit that many businesses provide, even though it is not required by law.
Germany’s social benefits
In Germany, employers and workers are required to contribute equally to a social security system that provides benefits including pensions, health insurance, unemployment insurance, and so on. Accident insurance is also necessary, however it must only be provided by employers. A typical employer’s total contribution to obligatory social benefits is 20% of each employee’s income more.
In addition to these required benefits, many businesses often provide extras like housing assistance, private health insurance with greater coverage, and other advantages.
German sick leave
If they can provide a doctor’s certificate, German workers are guaranteed a minimum of six weeks of paid sick time. After this time, workers will get at least 70% of their pay via their health insurance.
