Numerous internationally operating companies temporarily send their German employees abroad or employ foreign workers in Germany. In most cases, international deployment happens due to a lack of local talent.
Conducting intra-company transfers of staff allows for
- leadership development,
- knowledge transfer,
- instruction in certain processes, and
- realizing special training courses.
Given international as well as German law, a number of legal aspects have to be taken into consideration. The individuals in charge of a company's (international) deployments are routinely faced with questions such as
- German and international social security law,
- A1 form (formerly E101 form)
- international social security treaties
- tax law and
- visa/immigration law.
Under certain circumstances, companies must also take into account the strict requirements of the German Temporary Employment Act when employees are deployed to Germany.
When employees are deployed to Germany and the minimum conditions or reporting requirements are not complied with, social security contributions are not correctly paid or a necessary permit is not at hand, substantial fines may be imposed by the German Customs Administration (Zoll).
Furthermore, there is the risk that the social insurance carriers stipulate high additional charges or even demand a rescission, which leads to high expenses. Also, judicial proceedings abroad, which result from poorly prepared posting situations, may require a significant amount of funds.
When involved in the project at an early stage, our lawyers ensure that there are no legal obstacles in your way and you can employ your personnel flexibly worldwide. If foreign legal systems also are involved, we can consult colleagues of our global network of attorneys in all of the world’s major business centers and thus ensure competent and reliable management of your cross-border project from a single source.
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