Hiring, Payroll & Employment
in Germany

Hire Contractors in Germany

Project Global helps international businesses hire, onboard and manage freelancers/ contractors in Germany. Through our established presence in Germany and in-country expertise, we provide contractor management, payroll, compliance, recruitment and workforce administration services.

Services available in Germany

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About Germany

Germany, in the heart of Europe, is a global leader in politics, economics, and culture. It boasts a diverse economy in automotive, engineering, pharmaceuticals, and renewable energy. Known for its innovation and education, Germany shapes global trends and is crucial in international trade and technological advancement.

Germany: Country Resources

Currency:

Euro (EUR)

Capital:

Berlin

Language:

German

Ease of doing Business

Very Easy

Population

83.5M

VAT

19%

Germany Berlin

Go Global in Germany

Our multinational clients trust us to take care of international payments and compliance for contractors working in Germany.

Whether you’re making a single hire or scaling a larger team, we’re here to support your growth every step of the way.

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FAQ's

Public holidays in Germany vary by federal state. Employees typically receive between 9 and 14 public holidays per year, in addition to their statutory paid annual leave entitlement.

Nationwide public holidays include:

  • New Year’s Day: January 1
  • Good Friday: March/April
  • Easter Monday: March/April
  • Labour Day: May 1
  • Ascension Day: 39 days after Easter
  • Whit Monday (Pentecost Monday): 50 days after Easter
  • Day of German Unity: October 3
  • Christmas Day: December 25
  • Boxing Day: December 26

Compensation details, including base salary, allowances, bonuses, special payments, and overtime, must be outlined in the employment contract. Employees are also entitled to sick pay, which is equal to their usual remuneration without overtime for up to six weeks, followed by reduced pay from health insurance for up to 72 weeks if the illness continues.

Employees in Germany are entitled to several types of leave, including:

  • Annual leave: Minimum of 20 working days per year for a five-day working week.
  • Maternity leave: Six weeks before and eight weeks after childbirth, extended in certain cases.
  • Parental leave: Up to three years, with possible extensions under certain conditions.
  • Nursing care leave: Up to six months unpaid leave for caring for a close relative​

Employers in businesses with more than 10 employees can terminate employment only for valid reasons related to the employee’s personal circumstances, conduct, or urgent operational requirements. Notice periods vary based on the length of service, starting at four weeks and increasing with tenure. Immediate termination is possible for severe misconduct

Employees are mandatorily insured in the social security system, which includes pension, health, nursing care, unemployment, and occupational accident insurance. Contributions are typically shared between the employer and the employee​

Hiring in Germany without establishing your own company requires careful assessment of the proposed employment model. Where a worker is employed by one organisation but assigned to work under another company’s direction, Germany’s regulated employee-leasing rules may apply.
 
The appropriate route depends on where the worker and client are based, where the work is performed, how the individual will be managed and whether specific labour-leasing requirements apply.
 
Project Global can assess the proposed requirement and help identify the most appropriate engagement route.
 
Planning to hire in Germany? Ask us to assess the available options.

An AÜG licence is a German labour-leasing licence. It can be relevant where one organisation employs a worker and assigns that individual to work under the operational direction of another organisation in Germany.
 
A compliant arrangement requires more than payroll administration. The legal employer must retain genuine employer responsibilities while the client’s authority is generally limited to operational instructions.
 
German staffing rules may also introduce obligations around documentation, equal treatment and assignment duration.
 
Discuss whether German labour-leasing rules may affect your requirement.

A genuine freelancer can be engaged in Germany, but the arrangement must operate as an independent business relationship in practice.
 
German classification focuses on the reality of the relationship. An employee is generally integrated into the client’s organisation and subject to instructions regarding how, when and where work is performed. An independent contractor has greater freedom to organise and deliver their services.
 
Simply using a freelancer agreement does not automatically determine employment status.
 
Review the proposed German freelancer engagement.

Freelancer misclassification can arise when someone is described as self-employed but works under conditions that indicate dependency on the client organisation.
Warning signs may include close supervision, fixed working methods, limited control over working time or location and a role that operates similarly to an internal employee.
 
Misclassification can create tax, employment and social security risks for both parties.
 
Request a German worker-classification assessment.

Assess the complete working relationship before the freelancer begins work.
 
The review should consider how the work will be organised, the level of supervision, the individual’s independence and whether they will become integrated into the client’s operations.
 
The contract should accurately reflect the working relationship and should be reviewed if the nature of the engagement changes significantly.
 
Request a German workforce risk review
No.
 
Freelancer registration and tax registration do not determine employment status by themselves.
 
Authorities look at the practical working relationship rather than registration alone. A registered freelancer may still be considered an employee if the working arrangements demonstrate dependency, control or integration within the organisation.
 
Check whether the proposed arrangement supports genuine self-employment
Not every freelancer is required to register a trade or business.
 
Many professional freelancers operate under a separate freelance registration model rather than a commercial business registration. However, freelancers are generally expected to register their activity with the relevant tax authorities and meet ongoing tax obligations.
 
The appropriate registration route depends on the nature of the individual’s activity.
 
Review the registration requirements for your proposed freelancer.

A German freelancer should be able to provide appropriate tax-registration information relating to their independent activity.
 
Organisations should ensure that invoicing details, tax information and payment instructions are verified before work begins. Appropriate onboarding checks help reduce payment delays and administrative issues later in the engagement.
 
Check the onboarding requirements for your German freelancer.

Yes.
 
Self-billing can be used where both parties agree the arrangement and the invoice complies with the relevant invoicing requirements.
 
It is important to establish who is responsible for creating invoices and to ensure that all required information is included before payments begin.
 
Discuss German freelancer invoicing and payment support.

Potentially, yes.
 
Remote working does not automatically place an arrangement outside Germany’s temporary-employment framework. Depending on the structure of the relationship and the level of direction exercised by the client, cross-border remote arrangements may still require assessment.
 
Organisations should review the locations of the worker, client and employing organisation before the arrangement starts.
 
Request a review of your cross-border remote-working arrangement.

Fixed-term employment contracts are permitted in Germany, but the reason for the fixed term and the required documentation should be carefully considered.
 
Some fixed-term arrangements require an objective justification, while others may be permissible subject to specific conditions. Fixed-term contracts must be documented correctly before employment begins.
 
If formal requirements are not met, the arrangement may not operate as intended.
 
Review a proposed German fixed-term arrangement before making an offer.
German employment documentation should clearly record the essential terms of the relationship.
 
These commonly include the parties, start date, place of work, duties, probationary period, working hours, salary, annual leave, notice provisions and other key employment terms.
 
Well-structured documentation provides clarity for both the employer and employee and helps reduce future disputes.
 
Review German employment documentation before making an offer.
Termination in Germany requires careful handling of both the reason for the termination and the process followed.
 
Employers should consider notice requirements, documentation, length of service and any applicable employment protections before taking action.
 
The formal process is an important part of termination and should be managed correctly from the outset.
 
Speak to a Germany specialist before beginning a termination process.

Germany offers access to highly skilled media, technology, digital and professional-services talent.
 
Project Global can help organisations define their requirement, identify specialist talent and assess the most appropriate engagement model before onboarding begins.
 
Considering recruitment and workforce structure together can help organisations move more quickly once the right candidate has been identified.
 
Tell us what talent you need and how you expect them to work.
Project Global can help organisations assess workforce requirements in Germany and support contractor engagement, compliance reviews, onboarding, contracting, invoicing and payment administration.
 
The most suitable engagement route depends on the worker location, client location, nature of the work and overall workforce strategy.
 
Each requirement should be assessed individually to ensure an appropriate structure is selected from the outset.
 
Speak to Project Global about your German workforce requirement.

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