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Secondment contract
How to successfully and legally send your global talent to Germany with the right contract structure
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What contractual options exist for an employee's secondment to Germany and how these affect the applicable law.
The main differences, advantages and disadvantages between the single-contract model and the two-contract model .
Why the choice of contract model has a decisive impact on the granting of residence permits such as the ICT card or the EU Blue Card .
How we support you in creating legally compliant secondment agreements to avoid risks related to social security and the minimum wage.
1. Employment contract for secondments (secondment contract)
2. Single-contract model for secondment
3. Second-letter model for seconded employees
4. VISAGUARD Services for drafting employment contracts for secondments
5. FAQ Secondment Agreement
6. Conclusion on the secondment agreement
1. Employment contract for secondments (secondment contract)
When sending employees to Germany, companies face the challenge of adapting existing employment relationships to the new conditions in the host country . A secondment agreement serves as a necessary supplement or modification to the existing employment contract in the home country, ensuring that the specific conditions of the assignment abroad, such as duration, place of work, and remuneration, are legally binding. We pay particular attention to ensuring that, despite a possible choice of law in favor of foreign law, the mandatory provisions of German law pursuant to Article 9(1) of the Rome I Regulation are respected.
In practice, these contracts must meet not only employment law requirements but also immigration law requirements. For example, the law stipulates that for certain residence permits, such as the ICT card under Section 19 of the German Residence Act (AufenthG ), a letter of secondment or a secondment agreement must be submitted, detailing the duties as a manager or specialist and including a guarantee of return. We also strongly recommend a bilingual version to increase acceptance by German immigration authorities and avoid subsequent translation costs.
2. Single-contract model for secondment
The single-contract model is widespread in international mobility and is characterized by the fact that the original employment relationship with the employer in the home country remains in effect and is only modified by a supplementary agreement for the duration of the assignment abroad. This model is often chosen to strengthen the employee's contractual ties to the sending company and to allow the continued application of the familiar social security law of the home country under the conditions of the "posting" provision according to Section 5 of the German Social Code, Book IV (SGB IV) .
From an immigration law perspective, this model is a mandatory prerequisite for the issuance of an ICT card , as it specifically prohibits the establishment of a local German employment contract . In this context, we carefully examine whether the structure of the rights of instruction constitutes an inadmissible temporary employment arrangement under Section 1 of the German Temporary Employment Act (AÜG) , as this could be grounds for refusal of approval by the Federal Employment Agency under Section 40 Paragraph 1 No. 2 of the German Residence Act (AufenthG).
3. Second-letter model for seconded employees
In contrast, the dual-contract model involves suspending the employment relationship in the home country for the duration of the secondment, while a separate, local employment contract is concluded with the host company in Germany. This arrangement is particularly advantageous when long-term or even permanent employment in Germany is the goal, as a local contract forms the basis for residence permits such as the EU Blue Card under Section 18g of the German Residence Act (AufenthG) or the residence permit for skilled workers under Section 18b of the German Residence Act (AufenthG).
A local contract generally leads to the full application of German labor and social security law , which means that the employee acquires pension entitlements in Germany. We support you in structuring the fixed -term nature of this local contract in a legally compliant manner according to the provisions of Section 14 of the Part-Time and Fixed-Term Employment Act (TzBfG). It should be noted that, according to the case law of the Federal Labor Court (BAG), the mere expiry of a residence permit is not automatically sufficient grounds for a fixed-term contract.
4. VISAGUARD Services for drafting employment contracts for secondments
As a specialized law firm, we provide comprehensive support to your company in structuring your global staffing assignments in a legally compliant manner. We draft customized secondment policies and individual contracts that meet both the stringent requirements of the Posted Workers Act (AEntG) regarding minimum working conditions and the obligations of the German Employment Contract Law ( Nachweisgesetz ). Our focus is on ensuring the approval of the Federal Employment Agency through precise wording – for example, regarding overtime compensation or bonuses.
Furthermore, we minimize your liability risks by proactively shaping the interfaces with tax and social security law. We implement necessary suspensive conditions in your contracts so that the employment relationship only becomes effective upon issuance of the required visa , and we advise you on the legally sound agreement of return clauses. With our expertise, we ensure that your compliance standards are maintained and that your employees experience a smooth start in Germany.
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5. FAQ Secondment Agreement
Does an assignment contract necessarily have to be written in German?
Legally, it is possible to draft contracts in only one foreign language. However, in the interest of fostering a welcoming culture and avoiding translation costs at government offices, a bilingual version (e.g., German/English) is strongly recommended.
Which law applies during the posting to Germany?
The parties are generally free to choose the law of their home country. However, mandatory German minimum standards, such as the minimum wage, maximum working hours according to the Working Time Act (ArbZG), and the statutory minimum vacation according to the Federal Vacation Act (BUrlG), must be strictly observed.
What happens to the contract if the visa is not granted?
It is advisable to make the secondment agreement subject to the condition precedent that the required residence permit is granted. This way, the agreement only becomes effective once the legal authorization to commence work has been obtained.
Can secondment contracts be limited in time?
Yes, a fixed-term contract is possible, but it must comply with the requirements of the Part-Time and Fixed-Term Employment Act (TzBfG). According to the Federal Labor Court's (BAG) case law, the limited validity of a residence permit alone does not automatically constitute a valid reason for a fixed-term employment contract.
6. Conclusion on the secondment agreement
Choosing the right contract model is the foundation for a successful secondment to Germany. While the single-contract model bridges the gap to the home country and is essential for obtaining an ICT card , the two-contract model, via a local contract, paves the way to an EU Blue Card and long-term integration. Companies must always maintain a balance between international freedom of contract and mandatory German employee protection laws . At VISAGUARD, we are your experienced partners, ready to help you navigate these complex legal issues in a legally sound and efficient manner.
List of Sources (Paywall)
[1] Timmermann/Uznanski/Mävers/Klaus, Employment of foreign workers, 2nd edition 2025