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How to know if your employer is operating legally in Germany?

Written by Raluca Trifa | Feb 13, 2026 10:41:32 AM

Many people travel to Germany for short periods of time to improve their financial situation. Employees are often sent to Germany on business trips, but remain employed in their home country during these trips. However, to ensure that working in Germany under a national contract does not cause additional worries and inconveniences, it is important to know whether your employer is operating legally in Germany.

Why is it important for an employee to know whether their employer in Germany is operating legally?

The illegal operation of an employer in Germany means that the company does not pay the mandatory taxes in Germany, has not properly declared the employee's secondment, is not registered with the relevant authorities, and does not comply with German working time and wage regulations. This has very serious consequences not only for the company itself, but also for its employees.

Employees may face not only unpaid wages, but also a lack of adequate social security, problems with insurance, and fines during inspections. If an employer does not pay taxes in Germany, this means that the employee cannot reclaim German taxes. It is therefore very important to make sure that you are working for a company that operates legally in Germany.

How do you know if your employer is operating legally?

When working in Germany with a Romanian contract, the employee must have a certificate confirming that social insurance is paid in Romania, a European Health Insurance Card, and secondment documents clearly indicating the period of work in Germany.

Pay attention to the documents you receive and sign before leaving on a secondment. In addition to the usual documents, the employee must be provided with a secondment order in the German language. In addition to the usual employment contract in their native language, the employee must also receive an employment contract (Entsendevereinbarung) in German. The employee should also receive a memo for temporary workers (Merkblatt) issued by the German Federal Employment Agency. This document describes the employee's rights and obligations.

If the employer operates legally in Germany and pays the required taxes, this means that the employee is entitled to a refund of German taxes and can ask their employer to provide a German payslip. Please note that employees in Germany are also subject to the minimum wage in that country, which also applies to posted workers. In 2026, this wage is €13.90/hour.

To protect yourself, check information about your employer’s company with the national registry centre before you start working for them, make sure that the salary and other working conditions meet German standards, and only begin work if you have a written employment contract and other important documents that protect your rights.