# Hiring in Germany Review edition — pending Theo Smith approval. ## Can this worker be employed through an EOR? An arrangement that constitutes employee leasing under the AÜG generally requires a leasing permit before assignment. The default same-worker assignment limit is 18 consecutive months, subject to statutory and collective-agreement exceptions. Applies to: German employee leasing; classification must be established for the actual arrangement Still to establish: Actual structure, permit, equal treatment, assignment history and applicable collective exceptions - Actual structure, permit, equal treatment, assignment history and applicable collective exceptions Next step: Confirm Actual structure, permit, equal treatment, assignment history and applicable collective exceptions. - [German federal legislation](https://www.gesetze-im-internet.de/a_g/BJNR113930972.html) Checked 2026-09-28. Research status: partial. ## Who has the right to work? EU nationals generally do not need a work permit to work in another EU country. Residence registration and recognition of regulated professional qualifications are separate checks. Applies to: EU citizens exercising intra-EU free movement; not a non-EU sponsorship rule Still to establish: Nationality, residence registration, regulated profession and any non-EU permit route - Nationality, residence registration, regulated profession and any non-EU permit route Next step: Confirm Nationality, residence registration, regulated profession and any non-EU permit route. - [European Union Your Europe](https://europa.eu/youreurope/citizens/work/work-abroad/work-permits/indexamp_en.htm) Checked 2026-09-28. Research status: partial. ## What should a buyer verify about the legal employer? An arrangement that constitutes employee leasing under the AÜG generally requires a leasing permit before assignment. The default same-worker assignment limit is 18 consecutive months, subject to statutory and collective-agreement exceptions. Applies to: German employee leasing; classification must be established for the actual arrangement Still to establish: Actual structure, permit, equal treatment, assignment history and applicable collective exceptions - Actual structure, permit, equal treatment, assignment history and applicable collective exceptions Next step: Confirm Actual structure, permit, equal treatment, assignment history and applicable collective exceptions. - [German federal legislation](https://www.gesetze-im-internet.de/a_g/BJNR113930972.html) Checked 2026-09-28. Research status: partial. ## How do we switch EORs or move to our own entity? Directive 2001/23 protects employment rights on qualifying transfers of economic entities retaining their identity. Existing employment rights and obligations pass to the transferee under the directive’s framework. AÜG section 1(1b) sets a default 18-month limit and counts earlier assignments by the same or another lender to the same user when the intervening breaks are no longer than three months. Collective exceptions can apply. AÜG section 1 regulates supplying employees to another employer for work. The actual employment and user arrangement therefore matters to the leasing analysis. Applies to: EU framework only; national implementation and transaction classification have not been determined. A supplier switch alone does not establish a qualifying transfer. Still to establish: National implementing law, economic-entity test, affected staff, consultation, pension exceptions and insolvency provisions Applies to: German employee leasing under AÜG; not a finding that every EOR arrangement is leasing Still to establish: Actual lender and user identities; Assignment periods and gaps across all lenders; Applicable collective deviation and permit Applies to: German proposed direct-employment transition; other employment and immigration rules remain separate Still to establish: Actual employer and user after the move; Transfer or termination-and-hire route; Payroll registrations, work permission, service and benefits - Classify the transaction under current local transfer/succession law. - Determine consent, consultation, service, leave and historic-liability treatment. - Confirm permits, payroll handover, provider termination and deposit recovery from actual documents. - National implementing law, economic-entity test, affected staff, consultation, pension exceptions and insolvency provisions - Actual lender and user identities - Assignment periods and gaps across all lenders - Applicable collective deviation and permit - Actual employer and user after the move - Transfer or termination-and-hire route - Payroll registrations, work permission, service and benefits - [eur-lex.europa.eu](https://eur-lex.europa.eu/eli/dir/2001/23/2015-10-09/eng/pdf) - [German AÜG section 1](https://www.gesetze-im-internet.de/a_g/__1.html) Checked 2026-09-28. Research status: partial. ## Does switching EOR reset Germany’s 18-month assignment clock? Applies to: German employee leasing under AÜG; not a finding that every EOR arrangement is leasing No automatic reset is available where the AÜG leasing rules apply. Before switching, calculate the worker’s assignment history with the same user undertaking across lenders and check any applicable exception. Supported rule: AÜG section 1(1b) sets a default 18-month limit and counts earlier assignments by the same or another lender to the same user when the intervening breaks are no longer than three months. Collective exceptions can apply. - Actual lender and user identities - Assignment periods and gaps across all lenders - Applicable collective deviation and permit Illustrative example: With 14 continuous months already spent at the same user, an immediate switch of lender does not create a fresh 18-month period under the default rule. Four months remain only if the assumed history and default limit are correct. - [German AÜG section 1](https://www.gesetze-im-internet.de/a_g/__1.html) ## Can our German entity take over the worker before the EOR assignment limit? Applies to: German proposed direct-employment transition; other employment and immigration rules remain separate Explore direct employment by the entity that will actually employ and use the worker. Do not assume that changing invoice routing or putting a different group name on a contract ends employee leasing. Supported rule: AÜG section 1 regulates supplying employees to another employer for work. The actual employment and user arrangement therefore matters to the leasing analysis. - Actual employer and user after the move - Transfer or termination-and-hire route - Payroll registrations, work permission, service and benefits Illustrative example: An incorporated subsidiary with no payroll or employment setup is not yet a completed handover plan. Set the cutover only once its obligations and the worker’s documents are ready. - [German AÜG section 1](https://www.gesetze-im-internet.de/a_g/__1.html)