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Global Mobility: Long-term secondments using a two-contract model
Legally compliant structuring of employee mobility: From visa requirements to local contract integration
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From what point is a posting considered a long-term stay and a D visa is mandatory ?
What role salary, qualifications and nationality play in visa issuance.
Why domestic employment is essential for most third-country nationals.
How we support you in the legally compliant implementation of global mobility strategies.
1. What is a long-term assignment?
2. Requirements for a long-term posting to Germany
3. What is a domestic employment relationship?
4. Labor and social security law for long-term postings
5. FAQ Long-term assignments to Germany
6. Conclusion on long-term assignments to Germany
1. What is a long-term assignment?
In the context of migration law, a long-term assignment is defined as any assignment of foreign employees in Germany exceeding 90 days . While short-term business trips often fall under visa-free entry or a Schengen visa , taking up employment beyond this period generally requires a D visa , which explicitly authorizes employment. The distinction between a long-term assignment and a short-term business trip is crucial here, as long-term assignments involve a temporary shift of the employee's primary residence and work location to Germany, which has far-reaching compliance implications.
The definition of long-term posting thus encompasses physical presence and work performance within Germany with a work permit . Legally, we base this, among other things, on Section 4a Paragraph 1 of the German Residence Act (AufenthG) , which stipulates that foreigners require a corresponding residence permit to engage in gainful employment. In contrast to delegated tasks within the framework of business trips orassembly and delivery contracts , which are often shorter in nature, long-term posting aims for deeper integration into local business operations, making a precise preliminary review of the residence permit requirements indispensable.
2. Requirements for a long-term posting to Germany
The successful implementation of an employee secondment to Germany depends primarily on whether the specific visa requirements can be met. These requirements are not rigid but are individually tailored to factors such as the employee's nationality , their recognized professional or academic qualifications, and the agreed gross salary. We always verify compliance with the Employment Ordinance (BeschV) to ensure that the intended work meets the legal minimum standards and that no grounds for refusal exist.
Particular attention must be paid to qualification analysis, as the recognition of foreign qualifications according to the guidelines of the Central Office for Foreign Education (ZAB) often forms the basis for skilled worker visas . Salary thresholds also play a crucial role, especially when seeking an EU Blue Card , which offers privileged conditions. The complexity arises from the fact that different legal pathways exist for various professional groups, which we identify for our clients to ensure the smoothest possible labor market access process through the Federal Employment Agency.
3. What is a domestic employment relationship?
For the issuance of the vast majority of work visas for long-term assignments, establishing a so-called domestic employment relationship is mandatory. This means that the foreign employee must be legally bound to an entity in Germany. Interestingly, Section 26 of the Employment Ordinance (BeschV) provides preferential treatment for nationals of certain countries: citizens of the USA , UK , Canada , Australia , Japan , South Korea, and New Zealand can operate under simplified conditions. However, for almost all other nationalities, a local connection in the form of a contract with a German branch must be established to comply with the requirements of Section 18 of the Residence Act (AufenthG) and the associated administrative regulations.
A common misconception is that a physical business location in the form of a building is required. In fact, registration through a tax advisor or lawyer acting as an authorized representative may suffice, provided that social security contributions and taxes are properly paid in Germany. If a company cannot or does not wish to establish its own structure in Germany, often the only remaining option is to use an Employer of Record (EoR) . However, we would like to point out that employing foreign nationals via an EoR is legally complex and only works with the "large" EU Blue Card according to Section 18g of the German Residence Act (AufenthG).
4. Labor and social security law for long-term postings
When implementing long-term secondments, particularly within the framework of the dual-contract model , it is important to note that, as a general rule, German labor law applies once work commences in Germany. This includes mandatory protective provisions such as the Federal Vacation Act , the Continued Payment of Wages Act, and the regulations concerning the minimum wage. Even if the original foreign contract remains in effect (albeit suspended), the work performed on-site creates a binding effect of German standards, from which deviations to the detriment of the employee are not permitted.
In parallel, social security obligations typically shift to the country where the work is actually performed. While temporary exemptions for remaining in the home system can be obtained through the A1 certificate (within the EU) or corresponding social security agreements (with third countries), in genuine long-term scenarios spanning several years, integration into the German social security system and unlimited tax liability under the Income Tax Act (EStG) are usually the legal consequence. We support you in ensuring these transitions are handled correctly from a tax and social security perspective, minimizing the risk of back payments for your company.
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5. FAQ Long-term assignments to Germany
Does every employee need a visa for a posting exceeding 90 days?
Yes, third-country nationals require a national visa (D visa) for stays that extend beyond the visa-free short stay if they wish to work in Germany.
What happens if there is no German subsidiary?
In this case, a domestic employment relationship can often be created through the tax and social security registration of the foreign employer or through the use of a professional Employer of Record model.
Does salary play a role in the approval of the secondment?
Absolutely. The salary level is often the deciding factor in determining which legal basis can be used for the visa, for example the EU Blue Card or another skilled worker regulation.
Does the foreign employment contract need to be terminated?
No, in the dual-contract model the home contract is usually suspended, while a local German employment contract regulates the operational and legal details on site for the duration of the secondment.
6. Conclusion on long-term assignments to Germany
Long-term assignments to Germany offer companies tremendous opportunities for global talent utilization, but also entail significant compliance risks if the structure of the domestic employment relationship is not correctly set up. Crucially, the appropriate visa strategy must be identified early on, taking into account nationality and qualifications. As your law firm specializing in visa law, we ensure that your global mobility strategy rests on a solid legal foundation by bridging the gap between residency law and local contractual implementation. With proper planning, bureaucratic hurdles can be overcome efficiently, guaranteeing a smooth start for your employees in Germany.
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Further Information
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List of Sources (Paywall)
[1] Timmermann/Uznanski/Mävers/Klaus, Employment of foreign workers, 2nd edition 2026