Germany is an attractive destination for many international companies that assign employees to the country to carry out international projects, provide cross-border services to local clients, or coordinate operations between different entities of the same corporate group established in Germany.

In this context, the intra-EU mobility of workers is one of the main tools for promoting business activity across the European Union. However, the European legal framework governing the cross-border assignment of employees is becoming increasingly demanding, and each Member State has transposed the European regulations on posted workers into its own domestic legal system.

In Germany, the Posted Workers Act (Arbeitnehmer-Entsendegesetz, AEntG) sets out the legal framework governing posted workers and establishes specific obligations for all European companies wishing to temporarily assign employees to the country.

German labour authorities have strengthened their control and inspection mechanisms in recent years, particularly on construction sites where foreign companies provide services. Therefore, in order to avoid penalties or disruptions to business activities abroad, it is strongly recommended to carry out proper project planning before commencing activities in Germany, ensuring full compliance with the obligations imposed by German posted worker regulations.

Main Obligations for Companies Posting Workers to Germany

Companies temporarily assigning employees to Germany must ensure compliance, throughout the entire duration of the assignment, with certain employment conditions established under German law.

Among other obligations, companies must review and, where necessary, adapt to:

• The minimum wage requirements generally applicable in Germany;
• Collective bargaining agreements that may apply depending on the activity performed in the country;
• Working time and rest period regulations;
• Conditions relating to annual leave, equal treatment, and occupational health and safety;
• Administrative formalities and mandatory notifications to the designated labour authorities.

A preliminary assessment of the posting project is particularly important, as it makes it possible to accurately determine the activities that employees will perform in Germany and assess whether any specific exemptions from the general obligations under German posted worker regulations may apply.

Specific Requirements by Business Sector

Where the activities carried out by the foreign company in Germany fall within sectors subject to additional requirements, such as the construction industry, a detailed analysis of the specific circumstances of the project will be necessary to determine whether sector-specific regulations apply.

A preliminary assessment will help determine whether the company is required to comply with the relevant sectoral obligations, which in certain cases may involve significant operational and logistical requirements. For this reason, strategic planning prior to the posting of employees is highly recommended in order to ensure compliance and avoid potential penalties from the competent authorities.

Planning to Post Workers to Germany? Our Support

At Feliu N&I, we assist national and international companies with the planning and comprehensive management of temporary employee assignments within the European Union.

We also have extensive experience advising companies in the construction sector wishing to provide professional services in Germany on a temporary basis, and we collaborate with German partners who are experts in managing any procedures related to the posting of foreign workers to Germany.

Our multidisciplinary team, specialised in international mobility, corporate immigration, and international employment law, supports companies throughout every stage of the process, including:

• Preliminary feasibility assessments;
• Review of applicable employment law obligations in Germany;
• Immigration planning;
• Document preparation and administrative compliance;
• Collective bargaining agreement analysis;
• Assessment of tax and social security risks.

In addition, we continuously monitor legislative developments and regulatory changes affecting international workforce mobility, enabling companies to operate with greater legal certainty and minimise risks during the execution of international projects.

For further information regarding temporary assignments of workers to Germany and posted worker compliance obligations, our team remains at your disposal.

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