The terms secondment, deputation or detachment describe the situation that an employee is being temporarily sent by his to work in another country.
When a company is getting into a secondment or deputation planning phase, the following are some of the typical questions that the company had to deal with:
- Should a deputation agreement or a local the employer’s German entity be installed?
- Is there maybe even a requirement to establish a local company entity?
- Does a minimum wage need to be observed?
- Does the employee need a work permit? How long will the work permit process take?
- Which company policies and procedures apply during the deputation?
- What other conditions, such a minimum holidays, need to be observed?
- Is the engagement in Germany subject to income taxes and social contributions? If so, does a German payroll or a shadow payroll need to be established?
- Can exceptions be obtained in regard to social contributions (e.g., CoC applications)?
- For how long can the employee be deputed to another country?
- What happens at the end of the deputation?
- Which labour law and which tax jurisdiction does apply?
Dr. Dwyer Legal has many years of experience in consulting companies with secondment processing. Beside the legal consulting, our firm also provides a full coverage tax consulting and payroll processing.
Please feel free to contact us should you look for further information. Correspondence languages are English, German and Italian.