Update of the BA guidelines for Employer of Record (EOR) for virtual awards abroad

Effective October 1, 2025, the Federal Employment Agency (BA) has once again amended its technical guidelines on the Temporary Employment Act (AÜG) – with significant consequences for companies that employ international skilled workers . The BA is retracting its broad interpretation of the licensing requirement, which was only introduced in 2024, and now stipulates that the AÜG no longer applies if the assigned skilled worker works exclusively remotely from abroad . This creates new legal certainty for companies that recruit highly qualified specialists internationally without immediately relocating them to Germany.

Phase of uncertainty: BA guidelines 2024

In October 2024, the Federal Employment Agency interpreted this issue differently. According to the old regulations, the decisive factor was not whether the employee physically worked in Germany, but whether a " virtual domestic connection " existed. This domestic connection was deemed to exist even if the remotely working specialist was employed by a German company, even if they never entered Germany. This interpretation meant that virtually every Employer of Record (EoR) model for German clients was considered temporary employment requiring a permit – and therefore illegal in many cases, since foreign companies typically do not possess a German temporary employment permit . Some companies discontinued EoR projects entirely to avoid the risk of illegal temporary employment.

U-turn in 2025: No permit required without physical activity in Germany

With the new directives effective October 1, 2025, the Federal Employment Agency (BA) has completely revised its position. The following now applies: No domestic connection – and therefore no requirement for a temporary employment permit – exists if the skilled worker works exclusively remotely from abroad and does not travel to Germany for work purposes. The directive clearly states this: An employee who works exclusively online from abroad for a German company is not subject to the permit requirement of Section 1 Paragraph 1 Sentence 1 of the German Temporary Employment Act (AÜG ) due to the lack of a sufficient domestic connection. For the practical application of immigration and skilled worker procedures, this means that employer-of-record models can once again be used legally if the skilled worker has no assignments in Germany. Companies can again make their international recruitment processes more flexible without the risk of unauthorized temporary employment. However, the BA's new position does not mean complete freedom from risk. Even short-term business trips , training courses, or meetings in Germany by the skilled worker can establish a relevant domestic connection. This would suddenly make the model subject to licensing requirements – and unlawful without a license.

Conclusion: Clear advantages for companies – and an important signal for skilled worker immigration

The new technical guidelines from the Federal Employment Agency regarding the Temporary Employment Act (AÜG) provide much-needed clarity for companies that employ and recruit skilled workers from third countries. The EOR model is thus regaining importance. Companies now have a legally sound instrument for retaining international talent, bridging waiting periods, and planning flexibly – as long as any form of physical presence in Germany is consistently excluded. This is an important step for the practice of skilled worker immigration: the reality of global remote work is finally being recognized, and labor migration procedures can be made more efficient as a result.