Dr. Sebastian Buddha, the best Employment and Labor Law Specialist in Berlin, talks with Konstanty Sliwowski, the CEO of Caissa Global Recruitment. They discuss the growth of remote employment in light of the Covid-19 situation. They will also talk about the dilemma of hiring people remotely from EU and non-EU countries in Germany.
Considering the skills shortage due to the pandemic and the entry restrictions, the downfall of the economy and the temporary labour regulations are complicating the process of hiring people from abroad. To overcome these challenges as a German business, read what Sebastian Buddha has to say on hiring people from other countries in Germany and gaining a competitive edge in the market.
Why Do Companies And Recruitment Agencies Look For Talent Abroad?
There's no doubt that the chances of hiring the right person with the right set of skills increase when you are searching internationally rather than looking for them in Germany.
According to Dr. Sebastian Buddha, companies are hiring talent globally despite the Covid-19 situation. But they find it hard to relocate them due to entry restrictions. But if you are employing people at the place where they live, companies do not have to face work permit issues. Also, companies can save the relocation costs as the employees can work from remote locations.
Moreover, it is easier for companies to hire employees from different legislations. They have less protection when it comes to employment law.
Legal Structure Of Hiring An Employee Abroad
Suppose an organization has hired an employee abroad. In that case, they can offer them a German employment contract, especially if they intend to relocate them later when the entry restrictions subside.
It is important to note that the employment law of the country they live in will also apply legally. Therefore, as a Germany-based company, you cannot overlook the employee protection rights of the country they live in.
So, it is more appropriate to provide the employee with a foreign employee contract designed under the local law.
Mistakes To Avoid In Distant Employment
Hiring an employee through a German Employment Contract in a different country means that you need to offer the necessary contractual conditions in writing to the employee after one month of the job.
Even if you offer a termination letter, you need to provide a handwritten note through courier to the employee's location as such correspondence through email is insufficient.
Things To Consider While Employing Abroad
As a German-based company, if you employ an agent abroad who concludes contracts for you, remember to consider the tax consequences. This is because it is riskier with an agent who runs around and conducts business in another country than a Chief Product Officer working from home.
You are also bound to pay the social security contributions for the employee in their location.
Things To Look Out For While Hiring Global Talent As A German Or UK-Based Company
- Hiring remote talent from abroad means facing no work permit issues or the costs of relocation
- If you offer a German employment contract, you need to consider the employment laws of the employee's location
- While hiring a remote employee, all onboarding and termination correspondence should occur through handwritten documents.
- You need to consider the tax consequences and the employee's social security requirements in their location.
If you want to find out more about hiring remote employees from another country, you can drop us a message or contact us.
