FAQ - International temporary employment


Do you want to employ temporary workers from abroad? Then you should look into international labour leasing. What is international temporary employment? What are the advantages of international temporary employment? What are the risks associated with international temporary employment? When does it constitute an illegal supply of labour? We have compiled the most important answers to the most frequently asked questions about international temporary employment for you.

What is international labour leasing?

International temporary employment or labour leasing from abroad is the temporary assignment of employees from one country to work in another country. This practice is a response to a labour shortage or the need for certain skills in another country. 
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What are the advantages of hiring out employees from abroad?

Temporary employment from abroad gives companies greater flexibility on the market. This means that they can react quickly to changing labour requirements. With the help of temporary staffing, companies can react flexibly to short-term labour requirements without having to make long-term commitments.
This is particularly useful for seasonal fluctuations and specific project requirements. In addition, employee leasing facilitates access to qualified labour that is in short supply in certain industries or regions.

What are the risks associated with international labour leasing?

In international temporary work, risk factors can include breaches of legal responsibility, cultural differences and language barriers. Violations of applicable laws and regulations can lead to legal disputes. And this can have financial and reputational consequences. Cultural differences and language barriers are a risk factor as they impact the effectiveness of temporary work. This can lead to misunderstandings and reduced effectiveness.
To minimise these risks, a thorough legal review, a precise agreement and clear communication are required.

When does an illegal supply of labour exist?

Illegal temporary employment exists when a company employs workers without the required legal authorisation. Or if it violates the applicable labour laws and regulations. This can take various forms. This includes the exploitation of workers without adequate protection or remuneration. Or the evasion of taxes and social security contributions.
Illegal labour leasing can have serious legal consequences for all parties involved, including fines and criminal prosecution.
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Are there certain industries or sectors in which international labour leasing occurs more frequently?

Industries that have a high demand for short-term or seasonal labour make more frequent use of the practice of international employee leasing. These include sectors such as the Constructionwhich Productionwhich IndustryIT industrycrafts and the catering trade.
International temporary work is also common in industries with complex supply chains and global business models. These include, for example automotive industry and the Electronics industry. These industries are often dependent on flexible labour to cover peak times or to make certain skills available at short notice.

What about taxes and social security contributions for temporary workers in Germany?

Taxes and social security contributions for temporary workers in Germany are levied in accordance with the applicable tax and social security regulations. As a rule, contributions for income tax, pension, health and unemployment insurance are deducted from wages. 
The exact amount of deductions depends on the temporary worker's income and other individual factors. It is important that temporary workers and their employers are aware of their tax obligations and fulfil them properly in order to avoid legal consequences.

Who controls the supply of temporary workers?

Temporary work in Germany is controlled by the Federal Employment Agency. It enforces the Temporary Employment Act. The Federal Labour Agency monitors compliance with the law. The customs administration is responsible for prosecuting and penalising illegal temporary work.
The Federal Employment Agency works closely with the customs administration. They conduct joint investigations and inform each other of any suspected cases. The aim is to ensure the integrity of the labour market and the protection of employees.

Which workers from abroad work in Germany?

Foreign labour in Germany, whether highly qualified specialists or unskilled seasonal workers, makes a major contribution to the German economy. 
Foreign employees play an important role in various sectors in Germany. In the Constructionin manufacturing, agriculture, the skilled trades, information technology, healthcare, etc. They contribute to the diversity and competitiveness of the German labour market. They come from CzechSlovakia, Hungary, Slovenia, Romania, Poland and other EU countries and Eastern Europe.
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How is the cooperation between companies and personnel service providers organised in the context of international employee leasing?

The cooperation between companies and personnel service providers in international employee leasing comprises the selection, provision and management of employees by the service provider on behalf of the company. 
All initial and operational details are regulated in temporary employment contracts. They contain all questions regarding the rights and obligations of the parties involved.

What role does digitalisation play in international employee leasing?

Digitalisation plays a key role in international employee leasing. It facilitates remote collaboration. This rationalises recruitment processes. It also improves communication across borders.
Modern digital platforms enable companies to manage international talent pools efficiently. They enable companies to track key performance indicators and ensure compliance with legal regulations.
In addition, digital tools such as artificial intelligence and data analysis optimise personnel planning and decision-making. At the same time, they improve operational efficiency. And they support strategic decisions in international HR management.

How can companies ensure the quality of temporary workers from abroad?

The companies ensure the quality of international employee leasing through several measures.
Firstly, by thoroughly analysing the selection of service providers. By checking compliance with labour laws and assessing their experience in managing cross-border assignments.
Then through clear contracts in which rights, obligations and performance expectations are defined. And through strict compliance with these agreements.
In addition, regular performance appraisals and continuous improvement initiatives improve the quality of service. And that is an incentive for long-term partnerships in international employee leasing.

What financial aspects need to be taken into account in international employee leasing?

The financial aspects that need to be considered when hiring workers internationally include recruitment costs, visas, relocation costs, accommodation and transport. There are also the costs of complying with regulations in both the sending and receiving countries.
In addition, exchange rates and fluctuations in labour costs should be taken into account. Possible costs associated with cultural training and language tuition for posted workers should also be taken into account.
It is particularly important to plan a budget for unforeseen events and develop strategies to minimise risk. In this way, potential financial uncertainties can be effectively eliminated.

What challenges does international employee leasing pose for companies?

Companies face various challenges when it comes to international employee leasing. These include coping with complex rules and regulations. They also have to deal with cultural differences and overcome language barriers in different countries.
It can be a challenge to meet the requirements of labour law, immigration regulations and tax obligations in different countries. This can lead to administrative burdens and legal risks. In addition, multiculturalism in the workplace can lead to cultural misunderstandings and differences in working practices. And this affects teamwork and productivity.
The integration of different cultures and the overcoming of communication and cultural barriers therefore require strategic approaches to HR management. Investment in cross-cultural training and support programmes is also required.
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Legal aspects of international temporary employment

What legal regulations apply to temporary employment from abroad?

Labour law, visa regulations, tax laws and social security regulations are particularly important for temporary employment from abroad. These laws regulate aspects such as working conditions, entry and work permits, tax obligations and social security obligations for foreign employees. 
Companies must ensure that they comply with all relevant laws in both the country of origin and the destination country in order to avoid legal consequences and ensure that the temporary employment process runs smoothly.
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What are the legal requirements for working as a temporary worker in Germany?

In Germany, temporary workers must fulfil certain legal conditions in order to be able to work. The conditions for temporary workers include valid work permit and compliance with legal regulations on working hours, minimum wages and occupational health and safety.
Temporary employment agencies must have a licence to operate as a temporary employment agency. These conditions serve to protect employees and ensure a fair and equitable working environment.
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What is the revolving door clause?

A revolving door clause is a provision in collective labour agreements or laws. The revolving door clause states that the employee may not be employed directly by the temporary employment agency's customer for a certain period of time after termination of the employment relationship. 
This means that at least six months must have passed before the employee can be re-employed by the same company via the temporary employment agency.

What rights and protection do temporary workers have under international labour law?

Under international labour law, temporary workers have certain rights and protections. These rights and protections are defined by international labour organisations and relevant conventions. These include the right to a fair wage, decent working conditions and safety in the workplace.
In addition, temporary workers in many countries have the right to freedom of association and access to social benefits. It is important that employers comply with international labour standards and respect the rights of temporary workers to ensure fair and just working conditions.

What special features apply to temporary employment within the EU?

Special regulations apply to temporary employment within the EU in accordance with the EU Posting of Workers Directive.
This directive sets out minimum standards for working conditions and remuneration. Companies must ensure that they comply with these regulations in order to avoid legal consequences.
The aim of the Posting of Workers Directive is to ensure a level playing field and adequate protection for posted workers.

What documents and authorisations are required for hiring out employees from abroad?

Various documents are required for temporary employment from abroad. These include
- Proof of right of residence
- Work permit or visa
- Labour contract
- Address clarification
- Social security certificate
The specific requirements vary depending on the country of origin and destination as well as the type of activity and the planned duration of the assignment. It is imperative to submit all necessary documentation to avoid potential legal complications and ensure a smooth leasing process for the employees.

international temporary work

Employee leasing Eastern Europe

What is temporary employment in Eastern Europe?

Temporary employment in Eastern Europe refers to the practice whereby Eastern European workers are hired out by a hirer (usually a temporary employment agency) to a user company, often in another European country, for a limited period of time.

Why do companies in Western Europe utilise workers from Eastern Europe?

Companies in Western Europe utilise Employees from Eastern Europe often due to lower labour costs, the availability of qualified workers or to cover seasonal fluctuations and temporary peaks in demand.

Which law applies to temporary employment?

In the case of international temporary employment, the labour law of the country of hiring always applies. This includes working hours, holiday entitlement, continued payment of wages and other working conditions.

What is the A1 certificate?

The A1 certificate is proof that an employee is covered by social security in an EU member state. It is required when an employee is temporarily posted abroad to show that they remain covered by social security in their home country.
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Are Eastern European temporary workers insured against accidents at work in Western Europe?

Yes, according to EU regulations, temporary workers must be protected in the event of accidents at work in accordance with the law of the country of hiring.

How are wage differences regulated for temporary workers?

The EU Posting of Workers Directive obliges hirer companies to pay posted workers at least the statutory minimum wage in the country of posting.

What is the EU Posting of Workers Directive?

The EU Posting of Workers Directive sets out the legal framework for the posting of workers within the EU, including their working conditions and wage standards. The following documents are required for subcontractors:
Business registrationIn most EU countries, a business registration is required to work as a subcontractor. 
Tax number and VAT identification number: As a subcontractor, you must pay your taxes properly. To do this, you need a tax number and a VAT identification number if you operate across borders.
Proof of insurance: Depending on the nature of your business, you may need various types of insurance, such as liability insurance or professional indemnity insurance. These certificates are important to protect your company and minimise potential liability risks.
Business account: A separate business account makes bookkeeping easier and allows you to clearly separate your business transactions from your personal finances. This is particularly important for tax returns and bookkeeping.
Contracts and agreements: Record all contracts and agreements in writing, especially your agreements with your clients. Clarify all important points, such as the scope of services, payment terms and liability issues.
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What obligations does the temporary employment agency have in the case of international employee leasing?

The lender is obliged to ensure that the posted workers are paid and employed in accordance with the conditions applicable in the country of hiring. They must also handle the necessary administrative processes such as the A1 certificate.

How long may the secondment of workers from Eastern Europe last?

This can vary depending on the posting directive of the country of posting, but in general, posted workers can be transferred for up to 12 months, with the possibility of an extension for a further 6 months.

What happens if the rules on temporary employment are violated?

Both the temporary employment agency and the hirer may be subject to sanctions such as fines if the regulations on temporary employment are violated. In addition, claims for damages or additional wages incurred by the temporary workers can be asserted against the hirer.