GoGlobal launched its Employer of Record (EOR) services in Germany early 2021, and the country has quickly become the company’s fastest growing market in the Europe, Middle East, and Africa (EMEA) region.
- Germany is the largest economy in the European Union (EU) and the fourth largest in the world after the USA, China, and Japan.
- Its central location, membership in the EU and strong industrial sector make it one of the most attractive countries to expand into in Europe.
- Germany’s renowned and stable trading economy offers a highly developed political and economic framework for companies looking to do business in Europe.
- With a highly developed social market economy, Germany is not only appealing to businesses. Its high standard of living, robust social security, universal healthcare, and quality education also draw a vast international talent pool.
- Germany provides many opportunities for investors in not only its ubiquitous automobile sector, but also in mechanical engineering, chemical, electronics, knowledge-based sectors, and high-tech start-ups.
- From science and engineering to cars and consumer products, Germany features a thriving tech ecosystem and is a world leader in innovation.
Q&A with Sariah Lutkin, Director of GoGlobal Germany
What are a few things to keep in mind when hiring in Germany for the first time?
- Germany is a country where fixed-term contracts can only be issued in cases where a valid reason exists, such as a maternity cover, replacement due to sickness or a time-based project. Fixed-term contracts may be extended a maximum of two times and may not exceed more than 24 months. Any fixed-term contract that exceeds 24 months needs justification or it will be deemed by law to be an indefinite contract.
- Germany has a very generous statutory benefits system, especially when it comes to health insurance. Therefore, it is very uncommon to see supplemental health benefits for employees in Germany.
- German employees also enjoy a high statutory entitlement to leave. Common business practice provides even more vacation days for white collar workforce. Employees will often enjoy 30 days’ vacation per annum. This leave time is on top of statutory bank holidays which, dependent on state, will vary from nine to 14 days per year,
- Terminations in Germany are particularly complex and specific advice should be sought in every instance. In Germany, dismissal is allowed for a serious cause. In all other cases, a valid justification must be given, or the termination might be classified as an “unfair dismissal” if challenged in a labour court. As terminations are complex, it is best to seek advice before you make any decisions.
What makes GoGlobal’s Employer of Record services in Germany special?
With a local team that has a lot of experience in hiring and managing workforces in Germany, clients will be consulted regarding employee engagement as well as throughout the entire employee life cycle. Employees receive a personal onboarding call in which the EOR model, which is not as commonly used in Germany, is discussed, along with other details of the arrangement. The GoGlobal Team conducting the call will serve as the personal point of contact for the employee throughout the entire arrangement and will be able to answer any questions regarding payroll, HR, or any other local matters that our clients would not be able to assist due to lack of presence in country. GoGlobal holds an AUG dispatch license, which allows us to compliantly engage talent and keep our clients safe.
What’s led to the explosive growth of German business?
Germany has a large talent pool of highly-educated employees with strong language skills. For specialized roles, Germany is a particularly captivating market due to a high concentration of specialized, niche SMEs. That, combined with the superb infrastructure and central location within Europe, make Germany a great hub for international companies to hire talent and support the EMEA region.
GoGlobal is the world’s fastest growing, privately owned Global Employer of Record (EOR) service provider, with a globally distributed and remote workforce. GoGlobal’s technology-enabled EOR solution allows businesses of all sizes and geographies to hire staff globally without the need to set up a local entity, opening new doors to rapid expansion and growth. GoGlobal clients can hire top talent anywhere in the world – quickly, cost effectively and compliantly.