Employer of Record

10 Pitfalls in German Employment Law #8

International companies often start expanding to the German market without having established a local legal entity. In most cases, their aim is to accomplish a rapid market entry, explore the German market and/or mitigate the financial exposure until the local business is established.  

Many international HR service firms offer services of so-called Employer of Record (EoR). The EoR hires an individual for the client and takes care of the onboarding and the administration of employment. In fact, the hired individual works under the supervision of the client and is (virtually) integrated into its business.  

At first glance, this sounds very convenient for companies that are not yet certain whether to permanently enter a market. However, due to the highly regulated legal environment in Germany, there are many legal hurdles for a company when not carrying out the EoR model in a compliant manner. In our webinar, our specialists will guide you through this topic and how to avoid the legal pitfalls when cooperating with an EoR in Germany. 

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