Some might think that Germany, being a country with strict rules, would be an unattractive place for foreign companies to want to have employees. However, our experience is that having very clear, unambiguous regulations makes it easier to stay compliant.
In Germany, things tend to be black and white — compliant or not compliant — and business leaders appreciate knowing where they stand. Germany also has Europe’s strongest economy and its highest GDP, as well as a highly skilled workforce and developed transport infrastructure. Clearly, it ticks a lot of boxes, which is why it falls within the PEO Worldwide top three favourable destinations for employment in Europe.
Labour in Germany is highly regulated and companies wanting to carry out labour leasing (also known as a co-employment relationship) are subject to strict regulations under the German Personnel Leasing Regulations (Arbeitnehmerüberlassung).
Companies wanting to lease labour to their clients must hold an AüG licence, which is issued by the German Labour Ministry (Bundesagentur für Arbeit) and governs what can and cannot be done. Although it’s complex, PEO Worldwide has extensive experience of labour leasing in Germany, and our experienced staff will be able to steer you through the key points without issue.
A couple of notable points are: