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Contract for work and services procedure
Assembly and installation in Germany - Everything about the contract work procedure (visa and work).
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What are cross-border contracts for the supply of goods and services ?
What are the legal requirements under labor migration law ?
how the visa and notification procedure works at the Federal Employment Agency
what options are available for long-term supply contracts
1. Cross-border deliveries of goods
2. Visa work supply contract
3. Notification procedure Federal Employment Agency
4. Long-term work deliveries
5. FAQ
6. Conclusion: Work performed by foreign companies
1. Cross-border deliveries of goods
A cross-border supply contract is a contract in which a company not only manufactures but also delivers goods. Such contracts play a significant role in international trade , particularly in industry, mechanical engineering, and the IT sector. This article addresses the migration and visa requirements for the successful execution of cross-border supply contracts.
From an immigration perspective, contracts for the supply of goods and services present numerous challenges, as the delivery of the manufactured products or systems generally requires the entry of the seller's employees into Germany. Since entry for installation or maintenance typically involves only short-term stays, a national visa for contracts for the supply of goods and services often cannot be granted. The legislator has recognized this problem. The law therefore permits the short-term stay of foreign workers to install, assemble, disassemble, maintain, or repair machinery, equipment, and electronic data processing programs ordered from the employer, or to provide training in the operation of these machines, equipment, and programs ( § 19 para. 1 sentence 1 no. 1, no. 3 BeschV ).
2. Visa work supply contract
To obtain a corresponding short-term Schengen visa for cross-border supply of goods, certain requirements must be met. According to Section 19 Paragraph 1 Sentence 1 Number 1 of the Schengen Visa Ordinance (BeschV), a Schengen visa for cross-border supply of goods can only be issued under the following conditions:
The supplier is based abroad
The subject of delivery consists of machines, systems and programs for electronic data processing.
The delivery is for commercial purposes.
The supplier is also the manufacturer of the machines, systems or programs.
The employees assemble, maintain or repair the delivered item or instruct the user in its operation.
A proper notification will be made to the Federal Employment Agency.
Of particular practical importance is the requirement that the supplier must also be the manufacturer of the delivered item. It is therefore not possible to allow workers to enter the country to assemble machinery or equipment that was not produced by the same company. Exceptions may apply under certain conditions for corporate groups and international companies.
3. Notification procedure Federal Employment Agency
To allow employees to enter the country for the assembly of machinery or equipment, the Federal Employment Agency must be notified accordingly. Section 19, paragraph 1, sentence 2 of the Employment Ordinance (BeschV) requires that the employer notify the Federal Employment Agency of the delivery of work before the employees enter the country. If assembly work is carried out without the required notification, it is no longer considered employment exempt from approval and may therefore constitute illegal employment.
For the notification required under Section 19 Paragraph 1 Sentence 2 of the Employment Ordinance (BeschV), the form "Notification of the Assembly/Disassembly of Machinery/IT Programs" (PDF) , which is available online , must be used. The notification must be received by the Federal Employment Agency (BA) before work commences, after which the contractor will receive confirmation. If the legal requirements are not met, the contractor will be informed that a residence permit is required. Nationals of certain countries listed in Section 41 of the Residence Ordinance (AufenthV) can apply for a residence permit at the immigration office after entering Germany, while all other foreign workers must apply for a visa at the German diplomatic mission in their country of origin before entering Germany.
4. Long-term work deliveries
Postings under contracts for work and materials are also possible for periods exceeding 90 days , but then require the approval of the Federal Employment Agency. Crucially, the working conditions of the foreign workers must not be worse than those of comparable domestic employees, as stipulated in Section 39 Paragraph 3 of the German Residence Act (AufenthG). The starting wage for the respective occupational group is generally the basis for wage assessment, thus ensuring fair and legally compliant payment. A priority check is not conducted for long-term postings for work and materials.
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5. FAQ
What is a cross-border supply of goods?
A cross-border supply of goods exists when a foreign company not only delivers products (e.g., machines or software) to Germany, but also sends its own employees for assembly, maintenance, or training.
What are the requirements for a Schengen visa for deliveries of goods?
A short-term Schengen visa according to Section 19 of the Employment Ordinance (BeschV) can be granted if the supplier is located abroad, is also the manufacturer of the product, and the product in question is machinery, equipment, or computer programs. Employees are only permitted to perform specific tasks (e.g., assembly, maintenance, training), and formal notification must be submitted to the Federal Employment Agency.
How does the notification procedure work at the Federal Employment Agency?
Before the work begins, the assignment must be reported to the Federal Employment Agency using the official form "Notification of the assembly/disassembly of machinery/IT programs". Failure to submit this notification means the work is not exempt from approval and may result in illegal activity.
6. Conclusion
Cross-border supply contracts are a key component of international business, particularly in industry, mechanical engineering, and the IT sector. Adherence to migration and visa regulations is crucial for the legally compliant execution of such projects. Short-term assembly assignments can be carried out with a Schengen visa under the conditions of Section 19 of the German Employment Ordinance (BeschV), provided the manufacturer is also the supplier and the notification to the Federal Employment Agency is properly submitted. Stricter requirements apply to long-term assignments, especially to ensure fair working conditions. Companies should therefore examine the legal framework early on to avoid illegal employment and implement projects efficiently.
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List of Sources (Paywall)
[1] Offer/Mävers, Employment Ordinance, 2nd edition 2022, § 19
[3] Visa Handbook, Assembly - Works Contracts, 72nd Supplement; Version: 08/2020