Hiring in Germany

Local rules.
Better-informed decisions.

Start with the employment model, then confirm the contract, payroll setup and long-term plan for your specific hire.

General hiring information checked on 30 September 2026. Obtain German employment advice for the role and arrangement you intend to use.

1. Confirm the employment model

Where the arrangement is employee leasing, AÜG generally requires the lender to hold a permit. The usual maximum assignment to the same hirer is 18 consecutive months; qualifying agreements can vary that limit. Prior assignments may count. Ask for the legal employer’s identity, current permit where required, applicable agreement and a written explanation of the model. Source · AÜG §1

2. Agree the role and contract

Give the provider the role, work location, working pattern, salary, benefits and proposed start date. Ask it to confirm work authorisation, relevant collective agreements, contract formalities, probation, notice and ownership of work. Do not assume an EOR can sponsor every immigration category or support every role.

3. Check pay and working time

The general statutory minimum wage is €13.90 gross per hour from 1 January 2026. A rise to €14.60 takes effect on 1 January 2027. Exceptions and higher sector-specific floors may apply. Source · BMAS

The Working Time Act generally limits working days to eight hours. Extension to ten is permitted subject to averaging requirements; exceptions need separate assessment. Agree time recording and overtime arrangements before work starts. Source · ArbZG §3

4. Set up payroll and leave

Request a payroll calculation using the employee’s circumstances and current contribution ceilings. Confirm the insurer, relevant registrations, payslip process and funding dates. Annual statutory leave is at least 24 working days on a six-day-week basis, equivalent to 20 days for a five-day week; contractual rights can be higher. Source · BUrlG §3

5. Plan changes and the end of the assignment

Ask the provider to document the process for salary changes, absence, employee disputes and termination. Ending a commercial EOR agreement is not the same as lawfully ending employment. Schedule any assignment review well in advance and price the options for direct employment or another lawful arrangement.

Keep your evidence together

Retain the signed service schedule, employment contract, licence confirmation where applicable, cost breakdown, benefits schedule and agreed support process. Treat this as a starting checklist; your adviser should identify any additional requirements.

Plan the employment budget