Germany > Legal entities > Staff leasing in Germany
Staff Leasing
in Germany (Arbeitnehmerüberlassung / AUG)
In addition to the classic posting of employees abroad, it is also possible to lease them temporarily, which for many companies is a very attractive and, above all, “safe” form of cooperation.
How staff leasing to Germany works
The whole point of the staff leasing (Arbeitnehmerüberlassung) is that you lease employees to other companies in Germany (freelancers cannot be leased). In order to apply for a German staff leasing permit, you must first have a Temporary Employment Agency arranged in Slovakia. The whole process on the German side then takes about another 2 months, which is a time-consuming and complicated process overall. But we will be happy to guide you through it and help relieve you of the paperwork associated with applying for a licence.
It is important to note that when leasing staff to Germany, payroll tax must be paid in Germany from the first day of the lease. This is where staff leasing differs from a simple secondment, where payroll tax stays in the sending country unless certain time limits are exceeded.
In case of staff leasing, you must also comply with the minimum wage regulations and provide at least the same favourable working conditions as comparable employees in the user employer’s business.
Frequently asked questions
When is cooperation considered employee leasing in Germany?
Cooperation may be regarded as employee leasing where a company makes its workers available to another business and that business integrates them into its organisation and gives them work instructions. The actual way in which the work is performed is decisive, not merely the title of the contract. We assess the planned cooperation model and identify any required permits.
Does a foreign company need a permit for employee leasing to Germany?
The commercial provision of workers under Arbeitnehmerüberlassung generally requires a permit under the German AÜG. The permit must be obtained before employee leasing begins unless a specific exemption applies. We check the requirements and help prepare the application and the necessary documentation.
Do agency workers have to be registered via the Meldeportal-Mindestlohn?
Cross-border employee leasing may give rise to specific notification obligations. The applicable obligation and the person responsible for submitting the notification must be assessed according to the roles of the lending company and the user undertaking. We review the situation and arrange the required notifications before work begins.
What are the risks of unauthorised employee leasing in Germany?
Employee leasing without the required permit or in breach of the AÜG may result in fines and other employment-law consequences. The authorities assess how the cooperation operates in practice, so merely labelling the contract as a contract for work is not sufficient. We review the contractual model and help structure the cooperation in compliance with the rules.