If you are a company operating in Germany, you will certainly have already experienced the shortage of skilled labour. Whether it is logistics, the Construction industry or the Industry everyone complains about the lack of skilled labour. Subcontractors from Eastern Europe give you the opportunity to fulfil your orders on time. We would like to show you here what is important for you as an entrepreneur and what obligations you have.
What are your obligations as a client in Germany?
In comparison to the United States, German residency law is basically not undergoing any drastic changes. New laws such as the Skilled Immigration Act are intended to facilitate access to the German labour market for skilled workers from third countries in particular. For German clients, it is more of a challenge to find a reliable subcontractor from Eastern Europe who correctly completes all the necessary registrations. It is also important to register each individual employee with customs to ensure that they receive the statutory minimum wage. In addition, all employees are subject to social security contributions, regardless of whether they are based in Germany or another EU member state.
The relevant regulations can be found in the EU Implementing Regulation. A German company must apply for a company number to employ workers from other EU countries, which can be obtained from the Federal Employment Agency. Employees also have the option of choosing which health insurance fund they wish to be insured through. It is important to provide the necessary proof and pay all contributions on time. Since 1 January 2021, every employee in Germany with a foreign employer is required to have an authorised representative who can keep and retain payroll records in German in the event of a tax audit.
What should you look out for when hiring foreign subcontractors?
If you employ foreign subcontractors, you as the employer apply for the A1 certificate. This application is now usually made online. The important thing here is where the application is made and this depends on how your employees are insured.
If employees have compulsory, voluntary or family insurance, you should apply to the health insurance fund. Even if you have private supplementary insurance, the health insurance fund is the right place to go.
If the employees have private health insurance or are not covered by an occupational pension scheme, submit the application to the pension insurance provider. Otherwise, the application is submitted to the Arbeitsgemeinschaft berufsständischer Versorgungseinrichtigungen (ABV).
We would like to stand by your side
We from Temporary Work International have been active as a personnel service provider for more than 25 years and specialise in the placement of employees for companies in Germany. Our focus is on the provision of skilled labour from Eastern Europe, EU countries and third countries for various sectors such as trade, construction and industry, Solar technologyindustrial assembly, machine relocation, electrical engineering, engineering, automotive industry, metal and steel construction as well as production and logistics.
Our core competences include welding, the manufacture of metal structures, assembly work and the construction and maintenance of industrial plants. We also provide reliable production assistants, assembly line workers, inspectors and other skilled labour.
Our subcontractors and temporary workers from abroad are active in various areas, including the series and individual production of metal structures and parts for mechanical engineering, road construction, shipbuilding and for use in railways and the construction industry
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