Employer of Record (EOR)

The efficient solution for hiring employees in Germany

An Employer of Record (EOR) is a service provider that assumes the legal employer role for employees in a foreign country, while they remain operationally integrated in your company. This EOR solution offers numerous advantages for companies that want to expand internationally without having to set up complex legal structures in each country.

With our EOR service you can hire employees in Germany quickly and efficiently while we ensure compliance with local labour law and tax regulations.

Scope of Employer of Record Services

  • Employee onboarding
  • Creation of employment contracts according to local labour law
  • Preparation and delivery of payslips
  • Timely salary payments
  • Registration of employees with local authorities
  • Monthly payment of wage tax and social contributions
  • Management of employee benefits and deductions
  • Employee support

Advantages of working with an Employer of Record

Working with an Employer of Record offers numerous advantages that your company can benefit from.

  • Quick and efficient international expansion
    If you are planning to expand internationally, an EOR is the ideal solution to hiring employees in new markets in a time- and cost-efficient manner. This way, you can avoid legal and administrative obstacles that may slow down the process.
  • Local expertise
    The EOR has access to the necessary local expertise in labour law and tax matters to advise you on the legal requirements in each country.
  • Legal compliance
    The EOR takes responsibility and accepts liability for compliance with local labour laws and regulations which minimizes the risk of non-compliance.
  • Time and resource savings
    An Employer of Records helps you save valuable time and resources by taking over administrative tasks such as payroll creation and contract management. This allows you to focus solely on your core business and achieve your corporate goals even faster.

Billing model of our Employer of Record services

We offer you a fair and transparent billing model tailored to your needs. Please feel free to contact us for further details.

Legal framework

The legal framework for EOR varies from country to country. In Germany, employee leasing is subject to strict legal regulations. ECOVIS EOR KSO GmbH has the AÜG license (AÜG = Employee Leasing Act) required by law in Germany to offer these services. We guarantee that your legal and tax obligations will be fully met, taking into account the relevant double taxation agreements.

A thorough understanding of labour, tax, and social security matters is essential for ensuring that international employment relationships are legally compliant. Here is an overview of the most important aspects:

The Employer of Record is the legal employer of the employees (employment contract, salary payment, social security), while they are operationally integrated into your company.

Operational management remains with your company. The German Employee Leasing Act (AÜG) applies when employees are subject to instructions.

The AÜG licence (Licence according to the Geerman Employee Leasing Act) is only required for the Employer of Record.

If a freelancer only works for one employer, there is a risk of false self-employment. This can have legal consequences for your company.

German labour law must be applied to employees in Germany – e.g. regarding maternity leave, minimum holiday entitlement, notice periods, etc.

The Employer of Record pays the income tax payable in Germany.

The EOR withholds employer and employee contributions for pension, health, nursing care and unemployment insurance.

If the EOR is within the group, market prices must be applied and documented.

The EOR is the employer and is liable for the proper reporting and payment of income tax and social security contributions and for compliance with all labour law measures.

The future of the EOR concept

ECOVIS EOR KSO GmbH is your expert partner for Employer of Record services in Germany. We have extensive expertise in German labour and tax law and have been successfully supporting international companies in their expansion for many years. Our Employer of Record solution enables you to hire employees in Germany quickly and in compliance with the law.

In addition, we provide strategic support for your market entry and growth in Germany. As part of the international ECOVIS network, we combine local legal and tax expertise with global experience. With us, you gain a reliable partner who professionally secures your expansion so that you can concentrate on your core business.

Experts on this topic

Marcus Büscher

Partner, Rechtsanwalt, Fachanwalt für Handels- und Gesellschaftsrecht

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