Our Employer of Record (EoR) / International PEO solutions enable staffing organisations and foreign businesses to expand into Germany and hire employees without the need to establish a new corporate entity.
We take care of the entire employment relationship including managing all social security costs, social benefits and statutory rights afforded to the employee. The best part is that our EoR solutions are completely managed by the Capital GES team, allowing you to concentrate on growing your business.
Interested in doing business in Germany? Here are the top five things you need to know:
1. Social Security
Employer social contributions in Germany total approximately 21% of the gross remuneration. These include statutory
pension, state health and unemployment.
2. Fixed-Term Contracts
Fixed-term contracts in Germany can only be extended twice, and may not last longer than 24 months in total.
3. Termination Costs
Severance costs in Germany are generally 0.5 months’ salary for each year worked. Employees are entitled to challenge
this in court. Outstanding holiday must be compensated by payment in lieu.
4. Holiday Pay
The minimum paid holiday entitlement is 20 days if the employee works a 5-day week.
5. Probation Periods
The maximum probation period is six months. During this time contracts may be terminated by giving two weeks’ notice.
If you are looking to expand your workforce in Germany (or any other of the 30 countries we operate in) without the
burden of registering an entity and incurring significant expense and administration then please get in touch with Nick
Broughton at Capital GES on +44 7539 337 563 or email Nick.Broughton@Capital-GES.com.
Capital GES provides market-leading employment services to staffing companies, corporate clients and independent
contractors in all sectors across Europe, Latin America and southern Africa. With headquarters in Switzerland and offices
in USA, Brazil and UK, Capital GES provides services including Employer of Record, Contractor Payroll, Invoice & Pay and IC Compliance Checking.
For more detailed information on employment matters in Germany, including statutory benefits, employment regulations and contract requirements, download our free guide today or contact our team for a free consultation.