Employment abroad is a major challenge for which companies want to employ people abroad.
There are also many questions for the employees themselves, who often find their way in foreign countries for the first time and have to adapt to new cultures. An essential point for both sides is therefore the appropriate insurance protection abroad.
The basic social security is guaranteed in Germany by our – quite extensive – social security system. It is therefore natural for both companies and the employees concerned to look for opportunities to remain a member of German social security abroad.
A suitable option here can be posting with the broadcasting of the German social security system according to § 4 SGB IV. If this option is used, the employee remains a compulsory member of the German social security system while working abroad and the basic coverage should continue to be guaranteed.
In practice, however, the pitfalls of this solution are often apparent. On the one hand, the legal requirements are very narrow and with some avoidable posting, it becomes apparent over time that these have not been met and the insurance coverage actually expected does not actually exist.
For a “real” posting, the employment relationship must already have been established in Germany, the foreign activity must be limited in time, and the employee must continue to be fully integrated in the domestic (German) company.
If one of the requirements is not met, there can be no posting. The – sometimes dramatic – consequence of this is that benefits that employers and employees rely on are not provided by social security.
This can be, for example, reimbursement of treatment costs, a disability pension or unemployment benefit or statutory accident insurance coverage. Frequently, a waiver of posting and continued insurance in the German social security system can be the better option. Practically all social security schemes can be legally replaced by private provision. We would be happy to create individual and tailored concepts for you and your employees.