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Global Mobility

Medium-sized companies have been going beyond their home markets for some time now. They have long been selling and producing internationally. And where a company goes, so do its employees. So the globalization of the economy has also resulted in a globalization of employee postings.

Ger­man parent com­pa­nies post emp­loyees to for­eign sub­si­dia­ries to set up sales and dis­tri­bu­tion struc­tu­res or pro­duc­tion faci­li­ties. And they bring in emp­loyees from for­eign estab­lish­ments to work in Ger­many for a time. Some emp­loyees com­mute from one pro­ject to ano­ther around the world. Some emp­loyees work for the same emp­loyer – and some mana­gers manage com­pa­nies – in mul­tiple for­eign coun­tries simul­ta­neously.

Besi­des the in-house and per­so­nal pre­pa­ra­ti­ons for such pos­tings, which are already exten­sive, there are also many for­ma­li­ties that have to be addres­sed, such as emp­loy­ment con­tract terms on resi­dence and immi­g­ra­tion ques­ti­ons, or cla­ri­fying tax and social secu­rity obli­ga­ti­ons.

These regu­larly involve both the emp­loyee’s coun­try of resi­dence and the coun­try to which the emp­loyee is pos­ted. So arran­ge­ments can often be dif­fi­cult, and someti­mes even impos­si­ble wit­hout an advi­sor with the right exper­tise. In tax and social secu­rity mat­ters espe­cially, it’s important to avoid dou­ble taxa­tion as a con­se­qu­ence of mul­tiple obli­ga­ti­ons in dif­fe­rent coun­tries.

Both emp­loyees and com­pa­nies can fall into nume­rous traps in pos­ting emp­loyees abroad and in the inter­na­tio­nal pro­ject busi­ness. Deci­si­ons have to be made on how to struc­ture a for­eign invest­ment – as a for­eign estab­lish­ment or a sub­si­diary. With­hol­ding-tax impact must be pre­ven­ted or redu­ced as much as pos­si­ble, and trans­fer pri­cing must be che­cked for appro­pria­te­ness. Last but not least, there are value added tax risks to be atten­ded to.

Our inter­di­s­ci­p­li­nary teams in Glo­bal Mobi­lity will cla­rify all ques­ti­ons of emp­loy­ment law, insurance law and taxes for you and your emp­loyees, and deve­lop agree­ments with you that serve the best inte­rests of both you as an emp­loyer and your emp­loyees. After all, a pos­ting mustn’t fail merely because of for­ma­li­ties – it should bring bene­fits for the com­pany and emp­loyee both.

We can resolve ques­ti­ons about for­eign law smoothly and wit­hout red tape through our part­ners in the Nexia net­work – a plat­form of spe­cia­lists who know one ano­ther per­so­nally and work quickly, fle­xi­bly, effi­ci­ently and practi­cally with one ano­ther.