EOR - Made in Germany.
Deep Dive FAQs
(Legal & Process Details)
Which information do you we need to get started?
The process starts with a short email from you to worknow outlining your planned hire in Germany. To assess feasibility and ensure compliance, we ask you to provide the following information:
- The name of the person you would like to hire,
- Is this person a citizen of Germany or the EU
- the position and a short description of the role
- and responsibilities,
- the intended start date,
- the planned duration of employment (end date),
- the agreed gross salary
- and the number of annual vacation days.
Please note that in Germany, employer social security contributions amount to approximately 25% on top of the gross salary.
In addition, employment under an Employer-of-Record / employee leasing model is legally limited to a maximum duration of 18 months.
Based on these details, worknow reviews the request and prepares the next step.
How does pricing work at worknow?
worknow charges a fixed monthly EOR fee of EUR 599 per employee. In addition, a one-time onboarding fee of EUR 199 and a one-time offboarding fee of EUR 199 apply.
No further regular costs arise. Additional charges only apply in exceptional cases and subject to prior agreement, for example if an unusually high volume of expense receipts or complex travel expense processing is required.
Which contracts and documents are required under German law?
Several contracts and statutory documents are required.
- First, an EOR service agreement is concluded between worknow and the client, defining scope, responsibilities and commercial terms.
- Second, German law requires a separate employee leasing agreement (Arbeitnehmerüberlassungsvertrag). This document specifies which employee is assigned, for which role and under which professional requirements.
- Third, an Equal Pay declaration must be completed. Under German law, leased employees must receive the same remuneration and core working conditions as comparable permanent employees from day one. If no comparable employee exists in Germany, a hypothetical comparable role is used as the reference.
worknow prepares and guides you through all required documentation.
How is the Employee onboarded?
During onboarding, worknow collects all legally required employee data via a personnel questionnaire. This includes, for example, the social security number, health insurance provider and bank details.
We also conduct a mandatory safety instruction, which is provided online and documented in accordance with German regulations.
The German employment contract is then sent to the employee for signature. Due to statutory written-form requirements, the contract must be signed physically and returned to worknow before employment can formally commence.
Security deposit invoice
Why is a security deposit required?
Before the employment starts, worknow issues a security deposit invoice. The deposit equals one month of the employee’s gross salary plus approximately 25% employer social security contributions.
The deposit ensures that salary payments can always be made, including during any notice period. It is fully refundable and is credited against the final payroll payment at the end of the employment.
Can worknow provide a company car?
No. While we are frequently asked about company cars, providing vehicles is not feasible within a typical Employer-of-Record setup.
The limited duration of employee leasing arrangements, combined with the financial and legal risks of long-term leasing contracts, makes company cars impractical. In addition, the tax and accounting treatment of company cars in Germany is complex and would significantly increase administrative overhead.
For these reasons, worknow does not provide company cars or fuel cards.
What are the alternatives for mobility?
As an alternative, we recommend that the client arranges a long-term rental or lease directly. Where applicable, worknow can reflect the private-use component correctly via payroll to ensure compliant taxation under German law.
If employees use their private vehicle for business travel, German law allows a reimbursement of EUR 0.30 per business kilometer driven. Subject to prior alignment with the client, worknow can process this mileage reimbursement via payroll in a compliant manner.
Why is this handled so strictly?
worknow’s approach prioritizes compliance, transparency and risk mitigation. By clearly defining what is and is not feasible within an EOR setup, we avoid hidden risks, unexpected tax exposure and administrative complexity for our clients.
