Employee Secondment to Germany and EU-Posting

The legal setup of a secondment

Within a secondment, an employee is temporarily posted from one entity of  an organization to another entity of the company group. During this period, the employee remains in the employment relationship with the posting company, but may also enter into rights and obligations with the hosting company entity.

Once, the assignment period is completed, then the employee returns to his original work location.

Secondments can occur in both, national and international setups.

Employee secondment is not to be confused with temporary employment (where an employee is temporarily leased out to another company).

Please feel free to contact us should you look for further information. Correspondence languages are English, German and Italian.

Which aspects are to be considered when posting an employee?

When a company is getting into a secondment or deputation planning phase, the following questions typically come up:

  1. Does the setup fulfill the deputation criteria (or is a local contract required)?
  2. Which kind of deputation agreement shall be used?
  3. Does the company need to establish a German branch office?
  4. Which contracts have to be put into place?
  5. Does the employee need a visa or work permit? How long will the work permit process take?
  6. Which company policies and procedures apply during the deputation?
  7. Does a minimum wage need to be observed?
  8. What other conditions, such a minimum holidays, need to be observed?
  9. Is the engagement in Germany subject to income taxes and social contributions? If so, does a German payroll or a shadow payroll need to be established?
  10. Can exceptions be obtained in regard to social contributions (e.g., CoC applications)?
  11. Which labour law and which tax jurisdiction does apply?
  12. How can the return of the employee to his original work place be ensured?

Dwyer Legal Law Firm has many years of experience in consulting and supporting companies within secondment situations. We are in the position to assist our national and international company clients with answering the above questions and with setting up the ideal model for the intended posting. Please read more information about how does a typical posting modellook like.

Our services include the development of employment and deputation contracts as well as the support with negotiating and setting up client agreements, which can then also be used as the base for the relevant visa and work permit processing. In addition, Dwyer Legal Law Firm can also consult in regard to the legal regulations to be observed and with finding solutions how to optimize the binding of the employee to the company.

What is EU-posting?

EU-posting describes the secondment of an employee, who is employed with a company in one EU member state to a client or a company entity in another EU member state.

The EU laws (especially the directives 2018/957/EU and 96/71/EC, both concerning the posting of workers and the permission of services) define a set of mandatory rules regarding the terms and conditions of employment to be applied to posted workers with the target that certain central rights and working conditions are standardized and protected throughout the entire EU and  social dumping is avoided.

The rules also establish that the posted employees – even though they continue to be employed with their home country employer – are also entitled to a set of core rights in force in the host Member State.

This set of rights consists of:

  • Minimum wages
  • Maximum working hours /day & week
  • Minimum rest periods
  • Minimum paid annual leave
  • The conditions of hiring out workers through temporary work agencies
  • Equal treatment between men and women.

Please feel free to contact us should you look for further information. Correspondence languages are English, German and Italian.

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