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Employment law for employees posted to Germany
Lawyer's guide to employment law aspects of a secondment
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When German labor law applies despite a foreign contract.
The significance of the posting duration of 12 to 18 months for the scope of protection.
What minimum standards for pay and vacation must be strictly adhered to.
How we relieve you of the burden of complying with all documentation and reporting obligations.
1. Employment law aspects of secondments
2. Which labor law applies in the case of secondment?
3. Most important labor law regulations for secondments
4. VISAGUARD Services for assignments to Germany
5. FAQ Employment Law: Secondment to Germany
6. Conclusion on labor law for secondments to Germany
1. Employment law aspects of secondments
When employing staff across borders, companies often face the challenge that there is no separate special regime for foreign workers, but rather a complex network of national labor laws and specific posting regulations that must be observed. In our practice, we frequently observe that the principle of territoriality in labor law plays a crucial role: In principle, labor law regulations apply equally to all employees working within the country, unless explicit exceptions are stipulated. The legislator's aim here is to guarantee fair competition and protect social standards at the place of work.
A key reference point for the legal assessment is the Posted Workers Act (AEntG) , which establishes the principle of the place of work . This means that employers based abroad are obligated to grant their employees posted to Germany certain minimum conditions that are mandatory at the German place of employment . These include, in particular, regulations concerning remuneration, maximum working hours , and occupational health and safety. The correct classification of these aspects is the basis for any legally sound international HR strategy.
2. Which labor law applies in the case of secondment?
The question of applicable law is primarily governed by the Rome I Regulation . If the secondment takes place under a single- contract model , the contractual relationship in the home country usually remains in effect, as the temporary work abroad generally does not result in a change of the employee's usual place of work. Nevertheless, in these cases, we always recommend an explicit choice of law in favor of the home country's law pursuant to Article 8(1), first sentence, of the Rome I Regulation, in order to avoid any ambiguity. Despite such a choice , however, mandatory German provisions – so-called overriding rules – supersede the chosen law.
The duration of the assignment is particularly relevant: For postings of up to twelve months, only specific core provisions of German law pursuant to Section 2 Paragraph 1 of the German Posted Workers Act (AEntG) are mandatory. However, if the assignment exceeds this period, the scope of protection under Section 13b Paragraph 1 Sentence 1 of the AEntG generally extends to almost all regulations applicable at the German place of employment. An extension of this period to up to 18 months is possible by notifying the customs authorities , stating the reasons, which provides companies with valuable flexibility.
3. Most important labor law regulations for secondments
Among the most important mandatory sources, besides the Posted Workers Act (AEntG), are the Working Time Act , the Continued Payment of Wages Act (EntFG) , and the Federal Vacation Act . Particularly in cases of illness, posted workers must observe the special rules of Section 5 Paragraph 2 of the EntFG , which stipulate extended notification and documentation requirements for stays abroad. In such cases, the incapacity for work and the address at the place of stay must be communicated as quickly as possible to avoid jeopardizing the entitlement to continued payment of wages.
The German Employment Contract Documentation Act (NachweisG) also places high demands on documentation. If an employee is working abroad for more than one month, they must be provided with the essential terms of their employment contract in writing before departure. This must include mandatory information on the duration of the assignment abroad, the currency of payment , and the conditions for their return. These transparency obligations serve to protect the employee and entail considerable administrative effort for the employer .
4. VISAGUARD Services for assignments to Germany
At VISAGUARD, we see ourselves as your strategic partner, bridging the gap between immigration law and mandatory labor law. Our expertise includes reviewing your posting contracts for compliance with the German Posted Workers Act (AEntG) and assisting you in calculating minimum wage rates to avoid sanctions from the Financial Control Unit for Undeclared Work. We ensure that the remuneration components required under Section 2a of the AEntG are correctly taken into account and that the necessary documentation is available for any audits.
Furthermore, we handle all reporting requirements to customs authorities for your company. Whether it's the timely notification for extending the 12-month period according to Section 13b Paragraph 2 of the German Posted Workers Act (AEntG) or general working time documentation – we ensure compliance with all formal requirements. With our support, you can concentrate on your core business while we guarantee the legal compliance of your international employee assignments.
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5. FAQ Employment Law: Posting to Germany
Does German dismissal protection also apply to seconded employees?
According to the territoriality principle, the German Protection Against Unfair Dismissal Act primarily applies to employees working in Germany. In the case of secondments, this depends heavily on the employee's integration into the German company.
Can employment contracts be limited in duration due to a temporary visa?
A fixed-term contract under the Part-Time and Fixed-Term Employment Act is possible. However, a fixed-term residence permit alone usually does not justify a fixed-term contract based on objective grounds, unless it can be reliably predicted that the permit will not be extended.
What obligations does an employee have who falls ill abroad?
According to Section 5 Paragraph 2 of the German Continued Payment of Wages Act (EFZG), the employee must inform the employer of their incapacity for work, its expected duration, and their address at their place of residence as soon as possible. The employer bears the costs of this notification.
6. Conclusion on labor law for secondments to Germany
The secondment of employees to Germany requires precise coordination between the domestic law governing the employment contract and the mandatory provisions of German law. While short-term assignments primarily require adherence to minimum standards regarding wages and vacation time , long-term employment exceeding twelve months almost fully triggers the application of German labor protections. Careful planning of the contract and strict compliance with reporting obligations to the authorities are essential to minimize legal risks. We support you in implementing these complex requirements in a legally compliant manner.
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List of Sources (Paywall)
[1] Timmermann/Uznanski/Mävers/Klaus, Employment of foreign workers, 2nd edition 2026
[2] Offer/Mävers, Employment Ordinance, 2nd edition 2022
[3] Wank, R.: Employee Posted Workers Act: AEntG Commentary, 3rd edition, CH Beck, Munich 2023.
[4] Rome I Regulation (Regulation (EC) 593/2008): On the law applicable to contractual obligations.
[5] Continued Payment of Wages Act (EFZG): Regulations in case of incapacity for work abroad (§ 5 EFZG).