German Contractors UP

But compliance is paramount

Contractor opportunities in Germany are rife, despite further Covid-19 restrictions and an increasing demand from end users for  AUG leasing solutions, creating concerns for some professionals. That’s according to a recent analysis of contractor placement trends from 6CATS International.

The leading provider of contractor management solutions revealed it has noted an uptick in demand for contract professionals and compliance support across Germany. This is indicative of businesses in the destination attempting to maintain business as usual activity despite the country entering a second national lockdown at the end of October. According to 6CATS, there has also been increased demand for compliance guidance as recruiters and contractors face an increased demand for   AUG contract placements as end users are becoming more aware of the legislation changes made in 2017 in relation to worker categorisation.

Following an increase in remote working that was noted in the height of the pandemic, 6CATS International has in the last month, also seen an increase in remote working in the client country. This follows increased changes to travel restrictions and the allowance of business travel in many destinations.

Michelle Reilly, CEO of 6CATS International and founder of 6CATSPRO, commented:

“The global pandemic has certainly impacted contractor placements, but we’re seeing encouraging signs of resilience globally with some hotspots of activity. The growing demand for AUG contract placements  in Germany have certainly resulted in more contractors and staffing companies seeking expert guidance to ensure individuals are engaged compliantly in the country, but this isn’t limiting demand for temporary expertise. Agencies, end users and contractors are showing a much greater awareness of compliance requirements, which can only be a good thing.”

“While we certainly welcome the continued efforts to allow contractors to work remotely in both their home country and the client destination, it does create a number of compliance concerns. Where an individual works and what location they reside in impacts the taxes they need to pay. How long a person operates from and for a particular country also affects tax determinations. As such, contractors could unknowingly be operating outside of local or national regulations due to their remote working set up. We advise all contractors and the recruiters that place them to seek guidance on a case by case basis to prevent the risk of possible fines or criminal prosecutions.”

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