Posting Employees to Germany – Pitfalls You Must Watch Out For!

#posting of workers #posting to Germany #zollamt #MiLoG

Did you know that posting employees to Germany involves not only compliance with basic labor law requirements, but also additional administrative obligations? Improper documentation or failure to notify employees can result in hefty fines!

In this article, you will learn:

✅ What formalities must be completed before sending employees to Germany?
✅ What is the obligation to notify the German Customs Office (Zollamt)?
✅ What penalties can be imposed for non-compliance?

Read on to avoid costly mistakes!

Basic obligations

Regardless of whether the employer is sending employees to Germany to provide services for business partners or to a related company, they must comply with German posting regulations implementing relevant EU directives. The same applies when a German company uses a temporary employment agency to hire workers from Poland. Merely complying with local working conditions is not enough to ensure legal compliance—the process of posting employees is subject to additional administrative requirements due to customs authority oversight.

Directive (EU) 2018/957 of the European Parliament and of the Council of 28 June 2018, amending Directive 96/71/EC, requires employers to ensure employees receive the same employment conditions as those applicable in the host country. These include:

• minimum rest periods
• maximum working hours
• minimum paid annual leave
• wages (including all mandatory components) under national law or universally applicable collective agreements
• health and safety at work
• protective measures for pregnant workers, new mothers, and minors (under 18)
• equal treatment for men and women
• housing conditions in the host country, if provided by the employer
• allowances or reimbursement of travel, board, and lodging expenses during the posting

If employment conditions in the sending country (e.g. Poland) are more favorable, those conditions must be upheld during the posting.

For postings longer than 12 months (or 18 months with justified notification), all employment conditions applicable in the host country must be met—except supplementary pension schemes and contract termination rules.

If employees work in sectors covered by universally binding collective agreements in Germany, they must be granted conditions under those agreements—not just general labor law.

Social security

Due to differences in social security contributions, employers often prefer to pay contributions in Poland. To do this, they must obtain an A1 certificate from the Polish Social Insurance Institution (ZUS). This certificate confirms that the posted employee is insured in the sending country and does not need to pay contributions in Germany.

When applying for the A1 form, the start and end dates of the posting must be provided. The maximum period for one posting under this form is 24 months. Other A1 certificates exist for specific situations (e.g., alternating work between countries).

Zollamt

Even full compliance with the above may not be enough. The implementation rules of Directive 96/71/EC allow member states to impose additional requirements for posted workers. Germany has exercised this right—especially concerning inspections and documentation.

Article 9(1) of Directive 2014/67/EU allows the host country to require administrative steps before the posting, such as:

• Submitting a standard declaration to relevant national authorities (by the time the service begins), containing:
  1. service provider’s identification data
  2. number of posted workers and their identification data
  3. contact person’s details
  4. start and end dates of the posting
  5. workplace address(es)
  6. nature of the services justifying the posting
• Designating a contact person for host country authorities (German institutions)
• Appointing a representative for contact with social partners (e.g., collective bargaining in Germany)

German law implements these obligations through a reporting and documentation system overseen by the German Customs Office (Zollamt). This includes notifying Zollamt of posted employees, maintaining working time records and documents translated into German, and appointing a domestic representative (verantwortlich Handelnder) as a point of contact for inspections. These duties also apply to German companies employing workers hired from foreign temporary agencies.

The notification to Zollamt must include:

• family name, given names, and date of birth of the employees
• start date and expected duration of employment
• workplace address (e.g., construction site)
• place in Germany where personnel records are available
• sector in which the employees will work
• name, address, and contact details of the authorized German representative

The employer must promptly notify customs authorities of any changes to the above and declare compliance with employment condition requirements as defined by German law.

These obligations arise from three German labor laws: the Minimum Wage Act (MiLoG), the Posted Workers Act (AEntG), and the Temporary Employment Act (AÜG). Not all posting cases are subject to these administrative duties (e.g., depending on the industry), so each case requires individual assessment.

Penalties for missing or incorrect notifications can reach up to EUR 30,000.

In future articles: more on proper documentation, industry-specific exemptions, and consequences of Zollamt inspections.