The Unique Legal Nature of EOR in Germany
Germany represents Europe's largest economy and a major destination for specialized engineering talent. However, foreign executives often do not realize that standard EOR arrangements fall squarely under the German Employee Leasing Act (Arbeitnehmerüberlassungsgesetz or AÜG).
Navigating the 18-Month Ceiling and Equal Pay
Under § 1 Paragraph 1b of the AÜG, the same leased employee may not be assigned to the same hirer for more than 18 consecutive months. Furthermore, after 9 months, the worker must receive compensation identical to permanent employees in comparable roles. Understanding these statutory inflection points allows companies to plan their German growth strategy smoothly.
Citations & Statutory References
This research guide is synthesized in compliance with statutory labor directives, international bilateral double-taxation treaties, and global employment standards.
Primary Regulatory Frameworks Cited
- German Employee Leasing Act (AÜG) § 1 & § 8Statutory restrictions on temporary worker leasing, duration caps, and equal pay.
- Federal Employment Agency (Bundesagentur für Arbeit) DirectivesRegulatory inspection criteria for authorized personnel leasing licenses.
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