Payrolling is international. No matter where you work throughout the world it is something every employer and worker needs to keep in mind. Speedypayrolls operates in Australia, Dubai, Oman, Spain, Abu Dhabi, Spain, DRC, Algeria and Republic of Ireland and as we grow we hope to add to this list. Each new country comes with its own list of challenges, with rules and regulations differing from one place to the next. With recent opportunities to expand into Germany we thought it would be interesting to share some of the things to keep in mind when stepping into that market (something in wake of Brexit many UK companies may also be looking at).
Foreign companies, employing staff in Germany, need to comply with German legislation and are obliged to pay taxes and social security contributions in Germany for their staff, even if they have no local office in Germany and operate from their home country.
The German Government will hold an employer liable for mistakes made in the administration of payroll.
The majority of forms and documentation required are only available in the German language
employers must be able to understand all of the complex rules involved with hiring employees in Germany.
companies that fail to comply with the many laws and regulations for establishing operations in Germany will face stiff fines and penalties
There are many UK-based recruitment agencies active in the German market but it is vitally important to recognise that there are many legal differences between contracting in Germany and contracting in the UK
Labour leasing in Germany is governed by the AUG, the German employment agencies law. This requires each separately incorporated entity that wishes to lease employees to obtain a licence from the appropriate state labour office. Licences for all UK-based businesses are issued by the state labour office of North Rhine-Westphalia in Düsseldorf. Licences are valid for one year and may be renewed. Renewal applications must be made within three months of the expiration of the existing license.
An AUG is the German labour leasing licence that allows businesses to ‘lend out’ personnel in Germany. In order to be able to supply staff via agencies to clients in Germany, individuals must be employed by an AUG licence holder.
As we can see it is vitally important when operating in different countries to know what one is getting involved in and have a handle on any unfamiliar system. Speedypayrolls is dedicated to offering its unique staff management solution worldwide and as such is ever aware of the always changing and sometimes tricky international systems of employment regulations.