Directives 96/71/EC, 2014/67/EU and 2018/957/EU set out the legal frameworkrelated to the posting of workers within the EU. Rather than a single transposition, the secondment of employees to Germany is based on 3 frameworks acts:
- the Minimum Wage Act (Mindestlohngesetz – MiLoG),
- the Posted Workers Act (Arbeitnehmer-Entsendegesetz – AEntG),
- the Act on the Provision of Temporary Workers (AÜG).
In the following sections we summarize the obligations provided by German and European Law on transnational posting to Germany.
For an overview of all EU Directives on the matter, take a look at our guide on EU Posted Workers Directives.
Preliminary obligations for posting workers to Germany
When posting workers to Germany, foreign-domiciled employers must comply with several rules concerning minimum wage and employment conditions in order to give notification of their posted workers. These conditions are laid down in applicable collective bargaining agreements and legal provisions and must be reported in the notification pursuant to the Minimum Wage Act.
As a matter of fact, where a notification obligation applies, employers must submit the notification of posting online with the help of the minimum wage registration portal.
It has to be noted that notifications must be submitted prior to the commencement of the work activity in Germany regardless of its duration, unless a specific exemption applies.
Exceptions to the obligation to notify the posting of workers to Germany
The obligation to notify under the Minimum Wage Act only applies to specific work activities, as listed in Section 2a of the Schwarzarbeitbekämpfungsgesetz:
- setting up and dismantling trade fairs and exhibitions;
- building industry;
- meat industry;
- catering and hotel business;
- building cleaning;
- passenger transportation industry;
- fairground and amusement sector;
- haulage, transport, and associated logistics industry, including platform-based delivery services;
- private security sector;
- prostitution industry;
- hairdressing and cosmetics industry.
Separate notification obligations may apply under the Posted Workers Act, including in sectors not covered by the above list, or under the Act on the Provision of Temporary Workers.
Furthermore, pursuant to the Minimum Wage Act, notifications are not required when an employee regular monthly pay exceeds a gross €2,974. In this case, the employer must submit evidence of such payment for the past 12 months. Alternatively, the exemption applies where the employee’s sustained regular monthly pay exceeds €4,461 gross, without the twelve-month payment requirement.
Working and salary conditions applicable during the posting to Germany
The above-mentioned 3 acts, together with other applicable German employment legislation, lay down certain minimum requirements for the terms and conditions of employment. General conditions of employment apply to every sector and concern working time, safety, health and hygiene in the workplace, remuneration, allowances, reimbursement, holiday pay and vacation allowance, among others.
As far as the minimum wage is concerned, adjustments are adopted by government regulation following proposals by the Minimum Wage Commission.
Currently, the statutory minimum wage in Germany amounts to gross €13.90 per hour worked, effective from 1 January 2026. It will increase to €14.60 from 1 January 2027. Higher binding sector-specific rates must be respected where applicable.
Assignments to Germany lasting more than 12 months
From 30 July 2020, in case of posting employees to Germany for more than 12 months, additional rules shall apply. These regulations apply starting from the date from which the posting of a worker exceeds a duration of 12 months.
They extend protection to the additional terms and conditions laid down in German legislation and generally binding collective agreements applicable at the place of work, excluding rules on the conclusion and termination of employment contracts, including post-contractual non-compete clauses, and occupational pensions.
However, this period can be extended up to 18 months by submitting a reasoned notification in German to the competent customs authority before the twelve-month period expires.
Special rules applicable to the posting of temporary workers to Germany
Concerning the use and supply of temporary work services, special rules apply to ensure the protection of posted workers. Where a notification obligation applies, the foreign supplier must submit the required notification to the German customs authorities before the assignment begins.
Social security in Germany
When posting workers to Germany, employees temporarily work in Germany but are employed in another country. Thanks to the EU harmonized social insurance system, employees posted abroad pay social insurance contributions to the country where they are employed.
As a matter of fact, pursuant to Regulation (EC) 883/2004, the posting company must apply to the competent social institution for the issuing of an A1 Certificate for each posted workers. This document states in which country the holder pays for social security contributions.
A&P can provide full support with the application for the A1 certificate or the multistate A1 Certificate.
Documents’ availability during the posting to Germany
When posting workers to Germany, your company and your employees must fully cooperate with the German authorities in case of a customs inspection.
Among others, the main documents requested during such inspections are personal IDs, work permits (when applicable), employment contracts, pay slips, evidence of wage payments made, and working time records.
The employment and payroll documents necessary to verify compliance must be available in Germany in the German language. When requested, the required documents must be provided to the authorities and made available at the workplace. Failure to cooperate may result in an administrative offence.
Penalties for non-compliance as defined in the German legislation
If foreign-domiciled employers fail to notify or incorrectly notify the posting of workers to Germany, or fail to provide posted workers with the applicable mandatory working conditions, they may commit an administrative offence.
Breaches of notification obligations may entail fines of up to €30,000. Failure to pay the applicable minimum wage or to provide certain mandatory working conditions may entail fines of up to €500,000, depending on the infringement. Certain breaches of working-time recording and retention obligations may entail fines of up to €50,000.