Hiring foreign employees: Checklist in 9 steps

Over 13 million jobseekers in Europe – and Germany is struggling with a labor shortage? Many workers from a wide range of sectors within the EU are looking for work. Within Europe, companies can hire employees from abroad without having to overcome additional bureaucratic hurdles. More specific regulations apply to hiring foreign workers from outside the EU, but under certain conditions German companies can also hire workers from third countries.  

Hiring employees from abroad: Inside and outside the EU

In addition to skilled personnel, Germany is now also experiencing an increasing shortage of workers for blue collar jobs in areas such as logistics, industry. trade, hospitality and cleaning. For this reason, more and more companies are taking the opportunity to recruit employees from abroad – without any additional bureaucratic effort.

The employment of foreign workers from the EU who are not resident in Germany is possible without any problems: the so-called free movement of workers within the EU offers this unique opportunity. People from EU member states can freely choose their place of work and residence, which in turn opens up a large pool of talent for the German labor market. Employees have the same rights as their German colleagues.  

People from so-called third countries can also work in Germany under certain conditions. To do so, the employee must first take a few steps to obtain a work permit for foreigners. However, if these formalities are observed, it is also possible to hire foreign employees outside the European market.  

• Applying for a visa: If a person from a third country wishes to work in Germany, they must first apply for a visa at the German diplomatic mission abroad. This then involves the Federal Employment Agency, which checks factors such as professional qualifications and the type of future employment. On this basis, the employment office can approve the employment and a visa can be issued.  
• Applying for a residence permit: As a visa is always limited in time, a residence permit must be applied for after some time. If approved, the person can continue to live and work in Germany.  

For applications from people outside the EU, employers must first check whether a work permit is available – the application itself is the responsibility of the employee. Employers can speed up admission to the labor market by means of so-called pre-approval. To do this, they submit an application for advance approval online in order to be able to hire an employee from abroad.  

Checklist for hiring foreign employees in 9 steps

Hiring employees from other European countries is possible without additional bureaucratic hurdles thanks to the EU Freedom of Movement Act. In 3 simple steps, companies can hire staff from anywhere in the EU quickly and easily. Regardless of all the formalities, there are a few other points that employers can use to make it easier for their new employees to get started in their new country. With the following checklist, every employer is on the safe side when it comes to providing help and advice to new staff from other European countries.  

1.  Visa or EU freedom of movement: Check whether your new employee needs a visa, already has one or can work in Germany without a work permit under the EU freedom of movement.  
2. Employment contract in clear language: Draw up an employment contract that contains all essential working conditions and is understandable for both parties.  
3. Register residence: Assist with registering a place of residence in Germany if this has not already been done. This is also where new employees get their tax identification number.  
4. Request tax identification number: If it has not been possible to register residence in time, EU citizens can also request their tax ID from the relevant tax office.   
5. Explain payslips and income tax: Explain to foreign employees in Germany the prevailing payroll structure here and the details of payroll tax deductions.  
6. Register for social security: Register the person with the required social insurances (health, long-term care, pension and unemployment insurance).  
7. Create an induction plan: Develop an induction plan to optimally integrate new employees into the team and work processes.  
8. Offer language support: Offer support in learning German if they do not yet have sufficient language skills to perform the job.   
9. Intercultural training: Promote intercultural competence to both new employees and the existing team where necessary in order to reconcile any cultural differences in the workplace when employing foreign workers.

Especially in other European countries, hiring foreign employees is an effective strategy to counteract labor shortages. This gives companies a clear advantage over their competitors who are not yet taking advantage of this opportunity. Employers can provide targeted support to new employees from other European countries by creating clear and transparent structures and offering assistance from the outset. This gives both sides a good start to the new employment relationship and promotes direct employee loyalty in the long term.  

With JOBSMART, you can now find EU workers for your company. You will also receive weekly updates and valuable support on all topics of interest to you when searching for and employing foreign workers – in the JOBSMART blog!