Employer of Record (EOR) in Germany: AÜG Licensing, Pricing & SLA (2026)

1. The Legal Foundation of German EOR (AÜG)

Operating an Employer of Record in Germany is uniquely regulated. Unlike jurisdictions where standard co-employment or commercial contracts govern, German EOR operations fall squarely under the Arbeitnehmerüberlassungsgesetz (AÜG). Providers must hold an active employee leasing license issued by the Bundesagentur für Arbeit.

2. What to Verify When Choosing a German EOR

1. Direct AÜG License Ownership: Confirm that the provider's German legal entity directly holds the AÜG license rather than brokering through an anonymous sub-contractor.
2. 18-Month Assignment Tracking: Ensure the platform tracks tenure milestones to prepare compliant transitions before the statutory 18-month cap.
3. Local Social Insurance Remittance: Verify monthly deposits to the employee's designated statutory health fund (Krankenkasse) and pension scheme (Deutsche Rentenversicherung).