Hire workers from EU

There is a shortage of workers in Germany and it is therefore worth looking for staff across German borders to fill vacancies. If you as an employer want to take advantage of the international labor market, you do not need to overcome any major bureaucratic hurdles: Within the EU, the free movement of workers applies and so the processes and requirements for hiring personnel from the EU hardly differ from those valid for German workers.

As experts in the European labour market, we know what companies should know before hiring job seekers from the member states. Below we answer relevant questions and explain how JOBSMART can support you in your search for staff in other European countries.

Who is a potential employee from the EU?

Who is a potential employee from the European Union for your company? In principle, anyone from an EU country, as they have an agreement on the free movement of labour.

This agreement means that all citizens of the 27 member states enjoy freedom of movement for workers. The countries of the European Union are

You can recruit qualified employees from all these countries without any major bureaucratic hurdles.

Hiring non-EU citizens

Citizens of the member states of the European Economic Area (EEA) are legally treated as EU citizens. In addition to the member states of the European Union, these are Iceland, Liechtenstein and Norway.

Citizens of Switzerland also have the same rights as people within the EU, albeit on the basis of bilateral agreements. However, they also need to regularly update their residence status.

Citizens of other countries are referred to as third-country nationals. Different rules apply to them, depending on their country of origin, residence status or visa. As an employer, you should therefore be aware of the requirements for hiring staff from non-EU countries when recruiting internationally. Recruiting within the EU can be much easier in comparison.

Legal provisions on the employment of EU foreigners

The basis for the authorisation of EU foreigners to take up employment in Germany is the free movement of EU citizens. This is standardised in Article 21 of the Treaty on the Functioning of the European Union (TFEU). ‘Freedom of movement’ for EU citizens means:

‘Every citizen of the Union shall have the right to move and reside freely within the territory of the Member States, subject to the limitations and conditions laid down in the Treaties and by the measures adopted to give them effect.’

This means that EU citizens generally do not require any special documents such as a residence permit, work permit or residence authorisation if they wish to work or settle in another EEA country.

However, there is one restriction: anyone who lives in another member state for between 3 months and 5 years without the prospect of gainful employment and without being able to provide for themselves and their dependants may lose their right to freedom of movement. However, this provision is irrelevant for employers, as the right to freedom of movement is revived in the event of employment.

Reporting obligations for employers

The regulations on freedom of movement make it very easy to register employed EU citizens. As an employer in Germany, you are obliged to register employment relationships subject to social security contributions that exceed the mini-job threshold of 538 euros. Employers who employ workers from EU member states in Germany must comply with these reporting obligations in the same way as for employment relationships with domestic employees. The notification is made to the health insurance fund of the employed EU citizen. This in turn forwards the notification to the pension insurance fund and the Federal Employment Agency.

By registering for social insurance, employees from the EU are also subject to all the working conditions prescribed in Germany. In the event of omitted or incorrect registration or payment, employers are also threatened with back payments, late payment penalties or fines when employing EU citizens.

If you employ an EU citizen in a mini-job, you must also report this employment relationship to the Minijob Centre.

Social security and taxes for EU citizens in Germany

Employees from the EU who work in Germany must pay the same social security contributions as German employees. These include:

• Social security
• Pension insurance
• Unemployment insurance
• Nursing care insurance

and are deducted proportionately from the gross salary. This means that people from the EU have the same entitlement to all social benefits in Germany.

EU employees are subject to social security contributions for as long as they are employed. As an employer, you are therefore obliged to pay income tax directly.

Would you like to recruit European skilled workers for your company? JOBSMART supports you in your search if you want to hire EU citizens.

Recognition of EU professional qualifications in Germany

The EU Professional Qualifications Recognition Directive facilitates the recognition of professional qualifications within the EU and promotes the mobility of skilled workers. Formal recognition of professional qualifications is relevant in professions that are heavily regulated in Germany. These areas include, for example, jobs in the healthcare and technical sectors. For non-regulated professions, recognition of qualifications from other EU countries is often not mandatory.

You should therefore check whether your employees’ qualifications are recognised in Germany or have already been recognised. Recognition can also be advantageous for employees and employers in non-regulated professions. As an employer hiring EU citizens, you can ensure that the professional qualifications of candidates meet German standards.

Recruitment of EU workers: Recruit successfully with JOBSMART

Would you like to hire employees from the EU in your company? JOBSMART supports you in your search for employees from the member states! Also discover our JOBSMART Recruiting Blog, where we present current topics and information on the topic of hiring EU employees.