Human Resources

How to secure an employee leasing arrangement?

Employee leasing, known in German as “Arbeitnehmerüberlassung”, occurs when an employer (lending company) temporarily transfers one of its employees to another company (host company) while retaining the employee’s contractual relationship with the lending company. Our lawyers specializing in international employment law support employers and employees affected by employee leasing arrangements at every stage of the process.

How does employee leasing work?

Employee leasing is subject to strict rules regarding employment contracts, compensation, social security protection, and assignment duration.
Our lawyers specializing in international employment law will help you navigate the employee leasing process and advise you on the legal obligations you must meet to avoid any risk of reclassification or litigation.

How to draft an employee leasing agreement?

A valid employee leasing agreement must specify several essential elements, including the assignment’s duration, each party’s responsibilities, cost allocation, and conditions for the employee’s return. Poorly drafted terms can lead to reclassification as unlawful labor lending.
Our lawyers specializing in international employment law assist in drafting and adapting your employee leasing agreements to ensure compliance with applicable legislation and protect your company’s interests.

What administrative authorizations and reporting obligations are required for employee leasing?

Employers engaging in cross-border employee leasing must comply with several administrative obligations, particularly those related to declarations and detachment rules. These requirements vary depending on the assignment’s duration, the employee’s status, and the applicable laws in each country. Our specialized expertise is at your disposal to ensure compliance with legal obligations relating to administrative procedures, social security, and taxation, and to legally secure the employee leasing arrangement and minimize the risk of noncompliance and sanctions.

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