When hiring staff from other European countries for the first time, it is understandable to fear a high level of bureaucracy in Germany’s strictly regulated labor market. However, this concern is unfounded: Thanks to freedom of movement in the EU, employers only have to complete a few registration formalities when hiring foreign nationals – as is also the case for domestic workers. This freedom of movement also gives every EU citizen the right to seek work in an EU country for an indefinite period of time and to receive assistance from national employment offices. The recruitment of EU workers is therefore straightforward for both sides.
Article 45 of the Treaty on the Functioning of the European Union enshrines the principle of freedom of movement in Germany, which applies in principle if one or more of the following conditions are met for groups of people from the EU:
Special rules may apply to not-employed persons, self-employed persons, students and pensioners. However, the European Union provides comprehensive information on EU freedom of movement for the groups of persons concerned.
For the above-mentioned groups of people, EU freedom of movement law means that they can
Acquired qualifications can also be recognized across EU borders if certain conditions are met.
A German company wants to hire a painter from Hungary. The painter already has a job offer and is planning to move to Germany. The employer now needs to complete the necessary formalities for the start of the employment relationship under the EU’s Freedom of Movement Act.
Issuing an employment contract in two versions: Both parties sign the German and Hungarian versions of the document, which are translated but identical in content.
In order to benefit from EU freedom of movement, the contract does not legally have to be drawn up in two languages. A second version of the contract in the employee’s native language is nevertheless advisable in order to avoid misunderstandings and to avoid putting obstacles in the way of new employees.
After signing the contract, the painter quickly found an apartment and registered at the residents’ registration office. He then received his tax identification number by post and forwarded it to the company on request. With this tax ID, the company was able to register the employee with the tax office in order to pay income tax.
If the registration with the residents’ registration office is delayed for individual reasons, the person concerned can contact the relevant tax office to obtain a tax ID and forward it to the employer. The freedom of movement for EU citizens also makes this procedure possible.
Like other workers from other European countries as a rule, Hungarian painters are compulsorily insured in the German health, long-term care, pension and unemployment insurance schemes under the EU’s freedom of movement law.
The company registers the painter with the social security authorities at the start of employment in order to be able to calculate social security contributions and submit contribution statements. The employer does this with the first pay slip within the first 6 weeks.
The employer receives the certificate of membership of a health insurance fund from the new painter, who has received this from his health insurance fund after registration. A proactive reminder of this step was already sent by the company when the contract was signed in order to provide the best possible support for the painter.
The EU’s Freedom of Movement Act makes it much easier to employ workers from the EU in Germany. The administrative tasks that need to be completed by both the employer and the employee differ only slightly from the recruitment process for people from Germany. Should further questions arise during the recruitment process, the Federal Ministry offers a helpful overview of questions and answers on the subject of freedom of movement. Thanks to the freedom of movement for workers in the EU, German companies can find employees across national borders.
With JOBSMART, you can find qualified EU workers who benefit from the European Freedom of Movement Act in a targeted, quick and uncomplicated manner. You will also receive weekly updates and valuable support on the topic of EU workers in Germany – in the JOBSMART blog!
