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Posting employees to Germany is becoming increasingly popular, particularly among Polish businesses seeking new growth opportunities. Germany's labour market offers attractive employment conditions and high wages, so more companies temporarily send employees abroad. Although beneficial, posting requires compliance with specific Polish and German laws. A key element of lawful posting is completing social insurance formalities, namely obtaining form A1.
Form A1: the basics
Form A1 is an official document issued by the Social Insurance Institution (ZUS), confirming that an employee posted by a Polish company remains covered by Poland's social insurance system throughout their work in Germany. ZUS contributions are therefore still paid in Poland rather than Germany, eliminating the risk of double taxation and reducing employer costs. To obtain A1, the posting must be temporary, lasting up to 24 months, and the posting company must conduct substantial activity in Poland. The employee must not be posted to replace another previously posted worker.
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How do you obtain form A1?
The process begins with submitting an appropriate application to ZUS. This can be done electronically through the Electronic Services Platform (PUE ZUS), a convenient and quick option, or traditionally in person or by post. Supporting documents include an employment or mandate contract and evidence of lawful employment and business activity in Poland, such as invoices, contracts and a list of business partners. Ensure documentation is accurate and complete, as omissions can delay processing. ZUS may verify whether the posting is justified, so the information must reflect the actual circumstances.
Obligations under German law
Obtaining A1 does not release the employer from German employment conditions rules. Employees must, among other things, receive at least Germany's statutory minimum wage. However, collective agreements in many sectors set higher rates, including construction, transport, hospitality and meat processing. German rules on working hours, rest, leave and occupational health and safety must also be respected. Posted workers must have appropriate working and accommodation conditions and access to information in a language they understand.
Notifying posted employees
Businesses posting workers to Germany must notify the relevant German institutions, particularly in sectors subject to notification, such as construction, care, meat processing and road transport. Notifications are submitted through Meldeportal-Mindestlohn, providing employer and employee details, the location and duration of work and other legally required information. Failure to notify can have serious consequences, including an inspection by German customs (Zollamt), fines or a ban on operating in Germany.
Consequences of not having form A1
Not having A1 can have serious financial and legal consequences. If German authorities inspect the business and there is no document confirming coverage under Poland's insurance system, the employer may have to pay social insurance contributions at German rates. The employee may also be regarded as illegally employed, bringing administrative sanctions and financial penalties. Such situations can harm the company's image and make continued operations in Germany harder.
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Summary
Posting employees to Germany is an attractive way to expand, bringing numerous benefits but also legal and administrative obligations. Obtaining form A1 and meeting German labour law requirements are crucial. Compliance minimises sanction risks and enables efficient cross-border operations. At the TaxCoach accounting firm, we offer comprehensive posting assistance, including preparing A1 applications, liaising with ZUS, advice on German wages and employment conditions and ongoing support throughout the process. Contact us and leave the formalities to us while you focus on growing your company.
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