Hiring in Germany

Top companies from around the world have recognized the advantages of hiring in Germany, but its labor regulations can be complex. Employment relationships in Germany are governed by laws such as the German Civil Code (Bürgerliches Gesetzbuch – BGB), the General Act on Equal Treatment (Allgemeines Gleichbehandlungsgesetz – AGG), and various statutory instruments, as well as collective agreements and individual contracts. The BGB serves as the primary legal framework, outlining workers' rights, employer obligations, and procedures for labor disputes.

Additionally, German law places specific regulations on the use of temporary and agency workers. The Temporary Employment Act (Arbeitnehmerüberlassungsgesetz – AÜG) ensures that agency workers receive equal treatment in terms of basic working and employment conditions after a nine-month assignment with the same employer. Employers must provide written employment contracts detailing terms and conditions and ensure compliance with statutory requirements such as the minimum wage and working time regulations.

Because of the complexity of Germany's labor and tax laws, compliant employment contracts are a critical business requirement. With Safeguard Global as your partner, you can hire employees in Germany with confidence, knowing that every contract meets legal standards. We also provide guidance on cultural expectations and hiring best practices while helping you stay current with regulatory changes.

Relying on an employer of record (EOR) in Germany

An employer of record (EOR) provides an easier way for organizations to hire and pay local talent in Germany. Because of its in-country presence, the EOR can employ the workers a company needs and lease them to that company, taking care to comply with Germany’s labor laws. As a result, the organization doesn’t have to establish a legal presence or manage compliance in Germany. 

The EOR can hire and onboard employees in as little as two weeks and manage ongoing responsibilities such as payroll, benefits, and taxes. A full-service EOR can also manage recruitment. Together, these EOR services significantly reduce the administrative burden for an organization.

Visit our employer of record services page to learn how we can help you meet your international employment needs in Germany.