Employer of Record

In short – HRsolution GmbH hires the candidate you want

An employer of records (EOR) is a company that legally assumes the responsibility for an employee, for paying the employee’s taxes, social securities, benefits etc. while the employee works for another company.

All legal obligations of an employer such as payroll, social security payments, taxes etc. are taken care of by us. HRsolution then assigns the employee to work full-time for your company. To be able to deliver this service in Germany, you need a license which is given to you temporarily by the government. After 3 years of having a temporary license, a vigorous screening of your accounts, social security payments, employee payments etc is conducted by the German government. If all is found to be in order and compliant with national laws, you are granted a permanent license by the federal agency for employment (Bundesagentur für Arbeit). HRsolution has owned this license for 17 years now.

Situations in which using an EOR solves your problems:

• You are a foreign company and want to employ someone in Germany. You do not have a legal entity in Germany, nor do you want to establish one at the moment. However, you do want to employ someone in Germany to either test the market or because the best candidate lives in Germany and does not want to move or because your current employee is moving to Germany but you do not want to lose them. In this case, the EOR solution can take care of all your worries.
• You want to employ someone in Germany but as a company you want to stay out of sight and not make an appearance in Germany? Problem solved. By using the EOR solution, your company name will never appear but you can still have your chosen employee work for you.
• You have found a candidate you want to employ but due to them requesting a higher salary than your company would usually pay for such a position, it looks like you will not be able to hire him as it would cause unrest with the other employees? Employing the candidate via an EOR would solve your problem as he would not be employed by you and thus would not fall into the predetermined salary structure.
• Due to the current situation, your company has issued a hiring freeze. However, you still need skilled people to work for your department and so need a work-around? Using EOR, you can employ your candidate as he will not be on the company payroll.

Due to German labour laws, the maximum duration for such a contract is 18 months. Should you wish to continue to employ your employee, we will work out a solution with you before this period comes to an end.

Give us a call or send us an email to get in touch with us. We can provide you with the solution to your problem.