EMPLOYER OF RECORD · GERMANY
Employer of Record in Germany. Hire without opening a GmbH.
Own German entity. AÜG-licensed. Onboard in 2–3 days. Dedicated account manager from day one.
100% German Law Compliant
Fully adhering to Kündigungsschutzgesetz & social standards
AÜG-Licensed Operations
Safe employee leasing with legal compliance
GDPR Compliant
Your data is protected under EU law.
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TRUSTED BY 700+ COMPANIES ACROSS 40+ COUNTRIES
COMPARE YOUR OPTIONS
Why companies choose J&F over setting up their own entity.
See the difference between a dedicated Germany partner, a platform and doing everything yourself.
| Feature | Jackson & Frank | Deel / Remote / Other EOR Provider | Set up a GmbH yourself |
|---|---|---|---|
| Time to first hire | 2–3 business days | 1–2 weeks | 3–6 months |
| Setup cost | Flat monthly fee | Monthly fee per employee + hidden costs | €25,000 share capital + legal fees |
| German entity owned | ✓ Own GmbH | ✓Varies by provider. Often outsourced to 3rd parties | Your entity |
| AÜG-licensed | ✓ Yes | ✓ Varies by provider. | N/A |
| Permanent employment contracts | ✓ Yes | Varies by provider | Yes — you manage |
| Account manager | ✓ Named, dedicated | Platform support / ticket queue | You hire your own HR |
| Pricing model | Transparent, flat rate | €599 - 799/mo per employee + platform fee + hidden costs (3rd party fees, onboarding, offboarding, etc.) | Variable: payroll + legal + HR |
| Dismissal protection handled | ✓ We advise and manage | ✓ Varies by provider. Often outsourced to 3rd parties | You manage — risk is yours |
| Works council obligations | ✓ We advise | Varies | You manage |
| Path to own entity later | ✓ Entity setup support | Varies by provider. Often outsourced to 3rd parties | N/A |
*Competitor pricing is based on public information as of 2026.
ONBOARDING PROCESS
Hire in Germany in 3 steps
STEP 1 · DAY 1
01
Tell us about the role
Share the job title, salary, and start date. We'll confirm German-compliant salary benchmarks, social contribution estimates, and any sector-specific collective agreement (CBA) requirements that apply.
STEP 2 · DAY 1–2
02
Contract + onboarding
We draft a locally compliant employment contract under German law. Your new hire signs. We register them for Sozialversicherung and set up payroll — including Lohnsteuer withholding and the full employer contribution stack.
STEP 3 · DAY 3 ONWARDS
03
Ongoing employment
You manage your employee's day-to-day work. We handle monthly payroll, statutory reporting, sick leave administration, and any works council consultation requirements. You get a single monthly invoice.
LOCAL LABOR COMPLIANCE
What you need to know before hiring in Germany
CurrencyEuro (€)
Minimum wage€13.90/hour from 1 Jan 2026; rising to €14.60 from 1 Jan 2027
Annual leave20 working days statutory minimum (5-day week); typically 25–30 by contract
Sick leave6 weeks full pay (employer-funded); then 70% via statutory health insurance for up to 78 weeks
Maternity leave14 weeks paid (6 weeks pre-delivery + 8 weeks post); extendable to 12 weeks post for multiple/premature births
Parental leave (Elterngeld)Up to 3 years; German state pays 67% of salary up to €1,800/month
Working hours8 hours/day standard; max 10 hours/day averaged over a 6-month period
Probation periodUp to 6 months; either party can terminate with 2 weeks notice during probation
Notice periods4 weeks (< 2 years service) → up to 7 months (> 20 years service); written notice required
Dismissal protectionApplies after 6 months employment + employer has > 10 employees (Kündigungsschutzgesetz)
Employer social contributions~20% of gross: pension 9.3%, health ~7.3%, unemployment 1.3%, long-term care ~1.8%, accident insurance varies
Payroll cycleMonthly, paid at end of month
Language of employment contractGerman preferred; bilingual contracts common for international hires
These facts are current as of January 2026. We notify clients of regulatory updates — Germany adjusts minimum wage and social thresholds annually.
LEGAL STRUCTURE
Why the legal structure matters in Germany
Germany's employee-leasing law (Arbeitnehmerüberlassungsgesetz, AÜG) limits leased employment to 18 consecutive months. Many EOR providers operate under this cap — which means your employee's contract has an expiry built in.
Jackson & Frank is AÜG-licensed and employs your staff directly through our German GmbH under permanent employment contracts — not as fixed-term leased workers. This means no 18-month cliff on employment, and your employee gets the stability of a permanent contract (important for mortgages, long-term financial planning, and German labour market expectations).
If you're evaluating EOR providers for a long-term hire in Germany, ask whether they offer permanent employment contracts or operate under the AÜG leasing cap. It's a question worth asking every provider on your shortlist.
READY TO EXPAND GLOBALLY
Ready to hire in Germany?
Talk to our Germany team — no obligation, no generic pitch. One conversation with someone who knows German employment law, your industry, and what it takes to get a hire live inside a week.
Your information is secure and confidential.