Cross-border assignments bring employment law, social security, tax and immigration together. We coordinate these workstreams from the planning stage and involve local advisers where implementation is required in the host country. HR and management work with one central contact rather than several disconnected advisory teams.
Where international assignments become legally critical
Six issues to resolve before the first working day, as corrections during an ongoing assignment can be costly and time-consuming.
Two legal systems at once
An international assignment often involves the employment, tax and social security rules of two countries. The home-country contract must be aligned with the mandatory law of the host country to avoid conflicting provisions and gaps in protection.
A1 certificate and social security
Every assignment requires a documented assessment of the applicable social security system. For work in the EU, the EEA or Switzerland, the A1 certificate provides evidence of coverage; without it, inspections can lead to fines and contribution risks.
Residence and work permit
Third-country nationals assigned to Germany need the appropriate residence title, in some cases with approval from the Federal Employment Agency. A missing or unsuitable title prevents the employee from lawfully starting work.
Double taxation and the 183-day rule
If the stay exceeds 183 days or the host company bears the costs, the taxing right can shift to the country where the work is performed. Without reviewing the applicable double taxation agreement (Doppelbesteuerungsabkommen, DBA), you risk double taxation and retroactive wage-tax assessments.
Reporting duties and the AEntG
Depending on the sector, an assignment to Germany can trigger notification and documentation duties to customs (Zoll) under the AEntG and MiLoG, in the branches listed in section 2a of the Undeclared Work Act (Schwarzarbeitsbekämpfungsgesetz). The German statutory minimum wage (MiLoG) and core working conditions apply to every posted worker, and customs penalises any breach.
Secondment agreement and remuneration
The secondment agreement must clearly address net-pay or hypotax arrangements, allowances, applicable law and the employee’s return. Unresolved points can later lead to disputes over remuneration, tax consequences or the position after the assignment.
One coordinated mandate for inbound and outbound assignments
Whether employees are coming to Germany or being sent abroad, we coordinate the legal and tax interfaces and manage local implementation in the relevant host country.
Inbound: bringing employees to Germany
We coordinate contracts, residence status, social security and reporting duties so that foreign employees can lawfully begin working in Germany.
Review of German employment and residence law as well as social security for your foreign employees
Work permit, visa and EU Blue Card under the Skilled Immigration Act (Fachkräfteeinwanderungsgesetz); for titles requiring consent, with the approval of the Federal Employment Agency (Bundesagentur für Arbeit)
Adaptation of employment and secondment contracts to mandatory German law
AEntG reports, minimum working conditions and audit-proof documentation for customs (Zoll)
Training for HR and managers on the process and their obligations
Outbound: posting employees abroad
For outbound assignments, we manage the German workstreams centrally and coordinate local implementation with advisers in the host country.
Coordination with local advisers for employment, tax and residence law in the destination country
A1 certificate and clarification of social security for employee postings, including short business trips
Analysis of double taxation agreements (DBA) and the 183-day rule, including permanent establishment risk
Secondment contracts drafted to be valid and enforceable under both German and local law, coordinated with local counsel
Management of parallel assignments in several countries through a single central point
How we structure an international assignment
Step 1 of 4
01
Assignment structure and country assessment
We first determine the appropriate structure: secondment, local hire or staff provision. Duration, destination, reporting lines and cost allocation form the basis of the assignment concept and legal assessment.
02
Securing social security and tax
We assess the applicable social security system, apply for the A1 certificate or a certificate under the relevant bilateral agreement, and review the double taxation treaty, the 183-day rule and permanent-establishment risk. The conclusions are documented clearly for HR and payroll.
03
Immigration and contract
We coordinate the required residence title, such as the EU Blue Card or ICT Card, and prepare the secondment or supplementary agreement in alignment with German and local law.
04
Ongoing compliance and return
During the assignment, a compliance calendar records reporting duties, deadlines, renewals and tax review dates. At the end, we support the employee’s return and convert the established process into a standard for future assignments.
Structure your international assignments
Involve us before the assignment agreement is signed wherever possible. The earlier the structure, social security, tax and immigration issues are resolved, the more reliably the start can be planned.
You receive a documented assignment structure that can serve as a basis for future cross-border deployments.
1
Legally secure assignment
An appropriate assignment structure with clear responsibilities and contractual rules, whether secondment, local hire or staff provision.
2
Audit-ready compliance
A1 or bilateral coverage certificate, residence title, required notifications and documented deadlines.
3
Tax clarity
Documented assessment under the relevant tax treaty and 183-day rule, including payroll and permanent-establishment issues.
4
Robust contracts
Secondment and supplementary agreements covering remuneration, allowances and return, drafted to be valid under both German and local law.
5
Repeatable process
Contract templates, guidelines and a compliance calendar for the structured management of further assignments.
Seconding employees abroad
When you second employees abroad, the German employment contract remains in place and is supplemented by a secondment agreement that governs pay, duration and return. The main points to coordinate are the A1 certificate, the allocation of social security, the taxation of salary and the reporting and minimum working conditions in the destination country. We manage these matters from a single point of contact and bring in local advisers where needed. Our separate article explains how to set up an employee secondment on a sound legal footing.
Tell us the destination, duration, assignment structure and employees involved. We will identify the necessary steps for social security, tax, immigration and contracts.
Answers on the A1 certificate, residence titles, tax and reporting duties for employee secondment.
You need the A1 certificate for every work assignment in another EU or EEA state or in Switzerland, including short business trips. It proves that German social security law continues to apply. Apply for it and carry it before you set off; without the A1, an inspection can lead to fines and a double contribution obligation.
Within the EU, the EEA and Switzerland, Regulation (EC) 883/2004 applies. For a genuine, temporary secondment of up to 24 months (Art. 12 Reg. 883/2004), German law remains applicable, evidenced by the A1 certificate; beyond that, continued German coverage is possible only through an exception agreement under Art. 16 (by mutual agreement of the authorities). In third countries with a social security agreement, such as the USA or China, the respective agreement applies with its own certificate of coverage, but usually only for certain branches (mostly pension insurance; with China also unemployment insurance). The remaining branches (health, long-term care, accident) must be assessed separately. Without an agreement, double insurance is possible.
Citizens of the EU, the EEA (Norway, Iceland, Liechtenstein) and Switzerland do not need a title. Third-country nationals need a residence title for employment, often the EU Blue Card under section 18g of the Residence Act (AufenthG) or a title under the Skilled Immigration Act (Fachkräfteeinwanderungsgesetz). In 2026 the minimum salary for the Blue Card is 50,700 euros, and 45,934.20 euros in shortage occupations and for career starters. Depending on the title, the approval of the Federal Employment Agency (Bundesagentur für Arbeit) is required.
Under double taxation agreements, the employment income remains taxable in the state of residence if the stay in the host country does not exceed 183 days in the relevant period, the employer is not resident in the host country, and the pay is not borne by a permanent establishment there. If these conditions are not met, or the host company bears the costs, the tax liability arises in the country where the work is performed.
With a secondment, the German employment relationship continues, the assignment is for a fixed term, and German social security law continues to apply to the posting (Ausstrahlung). With a local hire, you conclude a new contract under the law of the destination country, with social security and taxation there. The choice determines contribution membership, costs, protection against dismissal and the return.
Yes, this must be examined. If the employee is integrated into another company's authority and operational structure, temporary agency work (Arbeitnehmerüberlassung) under the AÜG may exist. The group privilege under section 1 (3) no. 2 AÜG applies only if the employee was not specifically hired or employed for the purpose of being hired out. If the required licence is missing for licensable hiring-out, fines and an employment relationship with the hirer may result.
In the sectors listed in section 2a of the Undeclared Work Act (Schwarzarbeitsbekämpfungsgesetz), such as construction, care, logistics, hospitality and building cleaning, foreign employers must notify posted employees to customs (Zoll) under the AEntG and keep the required documents available for inspection. Independently of the sector, the German statutory minimum wage (MiLoG) and core working conditions apply to every posted worker. Added to this are the A1 proof, the residence title for third-country nationals, and where applicable tax registrations. Customs conducts inspections and penalises breaches.
An Employer of Record is generally permissible in Germany, but it is subject to the strict limits of the temporary agency employment rules. Without the licence required under the German Temporary Employment Act (AÜG), the contracts can be void and both sides face liability risks. We explain the legal requirements and risks in our article on the Employer of Record in Germany.
