PEO & Employer of Record (EOR) in Germany
Expand Your Business With Our Germany PEO
GlobalPEO delivers a top tier employer of record service for clients that are looking to recruit, hire, and operate payroll services without first setting up their own subsidiary in Germany.
How it Works: Our Germany PEO & Employer of Record (EOR) hires your candidate while abiding by local labor laws and cultural customs. The newly hired employee will communicate directly with your company and perform all job functions as if they were your own employee. We act as your in-country HR department and handle the entire onboarding, payroll, and benefits process in strict accordance to Germany’s regulations.
Why Choose our Germany PEO?
Germany PEO & Employer of Record
Hire, onboard, and manage employees in Germany quickly and easily with GlobalPEO. Working with our Germany PEO and Employer of Record solution eliminates the headaches that come with establishing a foreign legal entity and guarantees full compliance with local regulations.
#1 - Fast Facts For Hiring in Germany
#2 - Working Hours in Germany
The standard workweek in Germany runs between 35-40 hours per week. An employee may not work more than 48 hours in a single week according to German law.
#3 - Germany: Employment Contracts
Employment contracts in Germany must clearly state the employees’ responsibilities, compensation details, benefits, grievance procedures, and requirements for termination. All offer letters, compensation details, and any document where income is discussed should be stated in Euros.
GlobalPEO includes all these services along with everything else in the jurisdiction of international expansion in Germany through our Employer of Record service.
#4 - German Holidays
#5 - Bonus Payments in Germany
#6 - Germany: Employment Benefits
Below is a breakdown of the German Social Security System:
There are 5 components of the German system: health insurance, unemployment insurance, pension insurance, nursing care insurance, and accident insurance. Employers and employees split the contributions to the employee’s social security fund. Employers should plan for an additional 20% – 25% to contribute in addition to the employee’s salary.
Germany does have a limit on social security contributions, which range from 5,800 € to 6,500 € per month for statutory pension and unemployment insurance. Also, some companies choose to offer a housing subsidy to help with rent, along with a child subsidy that exists to help employees with the high costs of raising children.
#7 - Sick Leave in Germany
#8 - Maternity Leave in Germany
#9 - Termination & Severance in Germany
The process of terminating employees working in Germany can be highly complicated.
Below are the statutory minimum notice requirements based on how long an employee has been working for your company:
(Please note that a more mutually beneficial notice arrangement can be agreed upon in the initial employment contract)
0-2 years of service with a probationary period – 2 week’s notice.
2+ years of service – 1 month’s notice.
5+ years of service – 2 month’s notice.
8+ years of service – 3 month’s notice.
10+ years of service – 4 month’s notice.
12+ years of service – 5 month’s notice.
15+ years of service – 6 month’s notice.
20+ years of service – 7 month’s notice .
If there is a “termination for cause,” then an employee may be dismissed immediately. However, proving cause can be challenging as the German government often sides with the employee in the case of a dispute.
#10 - German Tax Laws
Germany currently ranks 114th in the worldwide rankings for ease of opening a new business. If opening a business or subsidiary of your own, we suggest hiring a local tax advisor to assist with the complicated tax filing laws and registering your company with full compliance to German Law.
This is where working with GlobalPEO can take so much of the hassle of operating in Germany off of your hand. Our German PEO and Employer of Record services will allow you to easily hire and have new employees’ onboarded in a matter of days.
Why Choose GlobalPEO?
Global expansion is a great step for your business – and now it’s easier than ever. Setting up your own entity in each country where you wish to operate can be expensive, complicated, and requires deep knowledge of the specific rules and regulations. Let GlobalPEO take care of everything. From International PEO & EOR, Global Payroll and International Recruiting we deliver our exceptional services at an affordable price.