Subcontractor secondment from Eastern Europe - efficient, legally compliant, quickly available

Subcontracting occurs when a company (the main contractor) outsources some of its tasks and services to another company (the subcontractor), which in turn sends its own employees to carry out these tasks in the main contractor's country. Crucially, the seconded employees remain employees of the subcontractor and work under its professional supervision - not under the instruction of the client.

When posting subcontractors, the posting guidelines of the respective countries must be taken into account. These include regulations on minimum wage, working hours, social security obligations, occupational health and safety and accommodation. In the EU, the EU Posting of Workers Directive, which is binding for all member states, is decisive. In Germany, there is also an obligation to register with the customs administration before the posting begins.

The aims of secondment are often cost savings through wage differences, the use of the subcontractor's special expertise or resources, the flexibilisation of the workforce and expansion into new markets. For the client, secondment means quick access to qualified specialists without the need for in-house recruitment.

Compliance with working conditions is ensured by the legislation in the host country. Employers must comply with local regulations and can be monitored by labour inspections. There are reporting and documentation obligations to prove compliance with the standards. Global Business Recruiting ensures that all partners are aware of and comply with these requirements.

The main contractor is obliged to check the subcontractor's compliance with legal requirements. This includes checking working conditions, insurance cover and compliance with reporting obligations. In certain cases, the main contractor is also liable for violations committed by the subcontractor - for example, in the event of minimum wage violations under the Minimum Wage Act.

Yes, harmonised regulations such as the EU Posting of Workers Directive apply within the EU and are binding for all member states - including uniform minimum standards for wages, working hours and occupational health and safety. When posting to third countries, the national regulations of the respective country apply, which can vary greatly and require an individual legal review.

Violations of posting regulations can result in fines, back payments of wages and social security contributions or other criminal consequences. They may also result in exclusion from public contracts. Global Business Recruiting ensures that such violations are avoided from the outset through careful contract drafting and compliance checks.

As a rule, posted workers remain covered by social security in their home country. In the EU, this is evidenced by the A1 certificate, which must be carried with the posted worker. Bilateral social security agreements exist between many countries, which avoid double insurance. Global Business Recruiting coordinates the application for the A1 certificate for all seconded teams.

This depends on the duration of the posting and the tax agreements between the home and host countries. As a rule, there is a limit of 183 days within a year, below which employees are still liable to pay tax in their home country. In the case of longer assignments or without a corresponding double taxation agreement, a tax liability may arise in the host country.

Bogus self-employment refers to the problem of employees being declared as self-employed, even though they actually work as employees - for example to avoid social security contributions and labour law regulations. This is particularly relevant when seconding subcontractors: If the posted employees are integrated into the client's operational processes and subject to its instructions, this may constitute bogus self-employment. The consequences are considerable: back payments of social security contributions, fines and criminal law risks for both sides.