Legal aspects of building with foreign subcontractors - what is important

The building with foreign subcontractors, especially from Eastern Europe, can offer many advantages. These include low-cost labour and specialist expertise. However, there are important legal aspects to consider. In this article, we explain what is legally important when you are building with foreign subcontractors.

What are the advantages of building with subcontractors from Eastern Europe?

When building with Subcontractors from Eastern Europe companies benefit from numerous specific advantages:

• Cost efficiency: Subcontractors from Eastern Europe often offer cheaper labour costs, which leads to considerable savings on construction projects.
• Expertise: Many Eastern European professionals have specialised know-how in building and construction, which contributes to the quality and efficiency of the project.
• Flexibility: These subcontractors are often very flexible and can quickly adapt to changing requirements and schedules on the construction site.

These benefits allow contractors to realise their projects more efficiently and cost-effectively while ensuring high-quality construction services.

Legal basis for the use of foreign subcontractors

When building with foreign subcontractors, compliance with legal regulations is crucial. Here are the most important points:

1 Temporary Employment Act (AÜG)

The Temporary Employment Act regulates the hiring out of workers. If you use Eastern European subcontractors, you must ensure that all provisions of the AÜG are complied with. This protects both the client and the workers. Read more: Temporary employment vs. subcontracting - the most important differences.

2. secondment law

The Posted Workers Act is relevant when subcontractors are posted from Eastern Europe. It stipulates that these workers must be given the same conditions as German workers. This includes wages, working hours and holidays. Employers who violate this rule risk severe fines and liability claims.

3. work permits and visas

In many cases, subcontractors from Eastern Europe require work permits and visas. Make sure that all relevant documents are available and valid, to avoid legal problems. Although EU citizens have freedom of movement in principle, they still need the A1 certificate for every assignment in another EU country. Additional requirements apply to third-country nationals, such as work contract agreements or the Vander-Elst exemption.

What are the contractual aspects of using subcontractors from Eastern Europe?

Clear contractual regulations are essential when using Eastern European subcontractors. Here are the most important points that should be included in the contracts:

• Service description: Clear definition of the services to be provided.
• Remuneration: Precise details of remuneration and terms of payment.
• Liability: Regulation of liability in the event of defects or delays.
• Terms of cancellation: Clear regulations for cancelling the contract.

Precise contractual provisions can avoid misunderstandings and ensure smooth cooperation. More on the individual clauses: Essential components of subcontractor contracts.

Checklist for the use of foreign subcontractors

To minimise the use of foreign subcontractors successfully, thorough preparation is essential. Here is a checklist to help you consider all the important points:

• Check compliance with the German Temporary Employment Act (AÜG).
• Ensure that the Posted Workers Act is complied with.
• Check that you have all the necessary work permits and visas.
• Obtain A1 certificates for all posted workers - before they start work.
• Check whether bogus self-employment is excluded.
• Draw up clear contracts with service descriptions, remuneration, liability and cancellation conditions.
• Carry out regular checks and document all relevant information.
• Maintain open communication with subcontractors.

By adhering to this checklist, you can organise your cooperation with foreign subcontractors efficiently and with legal certainty.

Study on the evaluation of the Temporary Employment Act (AÜG)

A current study by the Federal Ministry of Labour and Social Affairs (BMAS) on the evaluation of the Temporary Employment Act (AÜG) provides valuable insights into the practice of employee leasing and its legal framework. The study analyses the impact and effectiveness of the AÜG since its introduction.

The study on the evaluation of the Temporary Employment Act provides valuable insights. Here are a few points:

1. Legal conformity: The study shows that the AÜG is largely complied with, but there are still challenges in implementing it in practice.
2. Transparency and control: It is emphasised that increased control and transparency are necessary to prevent abuse and ensure fair working conditions.
3. Need for improvement: The study identifies areas in which the law can be improved in order to increase the protection of employees and ensure legal certainty for employers.

These findings are crucial for further optimising the legal framework and creating a fair working environment.

Significance for the use of foreign subcontractors

For companies working with Eastern European subcontractors, it is crucial to take the findings of this study into account. The Compliance with the AÜG is a key aspect of avoiding legal problems and ensuring fair working conditions.

By implementing the procedures highlighted in the study, companies can organise their collaboration with foreign subcontractors efficiently and with legal certainty.

Conclusion

Building with foreign subcontractors and what is legally important is a complex topic that Careful planning and control requires. Subcontractors from Eastern Europe can offer many advantages if all legal and contractual aspects are taken into account.

By complying with legal regulations and having clear contractual provisions, you can ensure that your construction project is carried out successfully and legally secure. Use the tips and checklists above to ensure smooth cooperation with Eastern European subcontractors.

Frequently asked questions about the use of foreign subcontractors in construction