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We support you in the preparation of any type of employment contract, whether it is employment contracts for your employees, contracts with freelancers or individual employment contracts for managers, management board members or executives. (See also our services for payroll)

Employment contracts

In "normal" employment contracts, there are different variants that can be considered for your company. The contracts may be temporary or indefinite. It may also be a part-time job, for example. Or it is a minor activity, which is preferred for tax purposes and social insurance. For all variants, the employment contract contains the relevant provisions and helps you as an employer to fulfill your obligations under the Proof of Evidence.

The employment relationship established by the employment contract is characterized by the worker's personal dependency on the employer. The employee is integrated into the work organization of the employer and is typically subject to the employer's instructions on the content, implementation, time, duration and place of work.

Freelancers

A "freelancer" is not subject to the instructions of an employer, but he performs his services independently on the basis of a contract or service contract. From the agreed remuneration, he must bear all his own costs (insurance, incidental costs) himself. We support you in the formulation and implementation of contracts with freelancers and advise you on how you can prevent your self-employment.

Frequent employees are often used in areas where, depending on the respective orders, staff bottlenecks quickly occur, but permanent employees would not be profitable because of the high fixed costs. Freelancers can be used flexibly. They do not have notice periods as they are usually only contractually bound for a specific order or project. The disadvantage is that freelancers are not always available.

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Sometimes it is better to terminate an employment contract prematurely. This may be done by mutual agreement by means of a winding-up or revocation agreement or unilaterally by way of termination, which must often be enforced in court. We advise you on the prerequisites and the employment and tax consequences of the termination of a contract of employment and termination contracts.

If the employer and the employee have agreed on an amicable termination of the employment contract, we shall prepare a termination agreement on the basis of the conditions communicated to us, or - if a termination has already occurred - a settlement agreement.

If no agreement is possible, we support you as an employer in the formulation and enforcement of a termination. Depending on the size of the company and the duration of the employment, the reason for termination and the notice period, as well as the requirements for the former, must be examined and observed.

If the dismissal is attacked by the employer with a protection clause, we represent your interests legally and competently before the competent labor courts.

We also support you in the formulation of proper working documents. On the basis of your particulars, we prepare a certificate and explain to you the individual regulations as well as the particular meaning of certain formulations in certificates.

What is temporary employment?

Temporary employment, also known as temporary work or agency work, means that employees are hired out by the employer to a third party for a limited period of time in return for payment. The employer is the lender and the third party is the hirer.

Temporary employment is to be distinguished from contracts for work and services. While the employee is bound by the instructions of the hirer in the case of temporary employment, the employee is not bound by the instructions of the hirer. In a contract for work and services, on the other hand, the focus is not on the worker, but on the work to be produced. As a rule, the employer, as an entrepreneur, has a contractual obligation with a third party to produce a work and uses its own employees to do so.

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If you actually want to hire out workers within the framework of a temporary employment agency, this is subject to authorization under the Temporary Employment Act (AÜG), with a few exceptions.

Temporary employment without a permit

In principle, all temporary employment requires a permit. There are a few exceptions to this, which are listed below.

Assignments within the same economic sector in order to avoid short-time working or redundancies, if a collective agreement provides for thisAssignments to a joint venture for the purpose of creating a plant Intra-group assignments, if employees are not hired and employed for the purpose of the assignmentOccasional assignments between employers, if employees are not hired and employed for the purpose of the assignmentA so-called personnel provision in the public sector, which is carried out on the basis of a collective agreementAssignments between legal entities under public law, provided that collective agreements under public law or regulations of religious communities under public law applyAssignment abroad to a German-foreign joint venture established on the basis of intergovernmental agreements

Requirements for a permit for temporary employment

If none of the exceptions apply to you, you must apply for a temporary employment permit from the relevant Federal Employment Agency. The responsibility of the employment agencies is determined by the location of the temporary employment agency.

A temporary employment permit may only be refused if there are any grounds for refusal. The focus of the permit check is on the personal suitability and reliability of the hirer.

According to Section 3 (1) No. 1 AÜG, the following aspects are grounds for refusal:

• Non-compliance with provisions of social security or wage tax law
• Non-compliance with the provisions of the employment agency on recruitment abroad and employment of foreigners
• Non-compliance with the provisions of occupational health and safety law and obligations under labor law

Other difficulties may include, for example, a lack of specialist knowledge on the part of the hirer, poor financial standing or a criminal record. The employment agency can attach various conditions to the granting of a permit. Various documents must also be submitted as part of the application. These include certificates of good conduct, the articles of association, proof of the required liquidity and others.

Permit procedure and costs

The employment agency charges a fee of €1,300 for the issue or extension of a temporary permit and €2,500 for the issue of a permanent permit.

Other costs include the official fees for obtaining the necessary documents and our consultancy costs.

The permit is initially only issued by the employment agency for a limited period of one year. A permanent permit can only be issued if the hirer has been working with a permit for three consecutive years. An extension of the permit must be applied for at least 3 months before the end of the current permit. Otherwise, the application will be rejected as late and the employees must be withdrawn from their respective assignment upon expiry of the permit without any transitional periods.

The permit is applied for by submitting an application form and the associated attachments to the relevant employment agency. After submission of all required documents and consultation with the employment agency, the decision of the employment agency usually takes 6-8 weeks.

The application for permission can be submitted during the company's start-up phase.

What attachments must be included with the application?

The following documents must be attached to the permit application:

• Copy of the extract from the commercial register
• Copy of the business registration
• Copy of the articles of association
• Certificate of good conduct for the applicant who is a natural person or for the representative in accordance with the law or the company's articles of association
• Information from the central trade register for the applicant who is a natural person or for the representative in accordance with the law or the company's articles of association
• Certificate from the employers' liability insurance association
• Certificate from the health insurance fundsExtracts from all business accounts or credit confirmations (liquidity obligation). 
• Credit confirmations (liquidity obligation of at least € 10,000 and € 2,000 per temporary worker if there are more than 5 temporary workers)
• Sample temporary employment contract
• Sample temporary employment contract

Depending on the individual case, further documents may be required. These must be submitted at the request of the employment agency within the deadline set in each case.

We will be happy to provide you with comprehensive advice on this topic, guide you through the complex application process and take care of the correspondence with the authorities.