Changes to German taxation and employment legislation is expected to lead to a more open relationship between agencies and clients, as well as an increase in contractor workloads.
A revision of pre-existing laws on ‘AUG’ labour, the changes relate to leased workers within the country.
Agencies putting contractors in Germany will have to make clear their engagement model in order to increase transparency.
Leading contractor management provider 6CATS isn’t as concerned with the changes as they are about those looking to avoid the extra paperwork, as additional processes and administrative duties will have to be accepted to work within the German market.
As more countries begin to share their information as part of the Common Reporting Standard, the management firm believes that companies will avoid the changes at their own peril.
“Any firms thinking they’ll be able to slip under the radar and get away with it are sadly mistaken, it’s simply not worth the risk,” said 6CATS “breaking the law in one country could have a knock on effect on an organisation’s operations in other fields.”
