To switch employer of record providers in Germany, establish who employs each worker and how that employment can move before agreeing an exit. A change of platform may leave the employer unchanged. A qualifying business transfer can preserve the employment relationship by law. Otherwise, the parties need a lawful, agreed route between employers.
Germany adds a separate constraint: where the arrangement is temporary agency work, changing EOR does not restart the worker's assignment limit with the same client. Confirm the incoming route, worker rights, permissions and funded payroll before ending the outgoing employment.
Rules checked 30 October 2026.
What changes when you switch EOR in Germany?
Compare the legal names in the employment contract, amendments, payslips and proposed incoming documents. Ask both EORs to explain any mismatch. A platform brand or company-register entry alone does not establish the transfer mechanism.
| Situation | Legal mechanism to verify | Evidence required | Implication |
|---|---|---|---|
| Same employer, different platform or administrator | Continuing employment with an administrative change | Matching employing entity; service scope; payroll responsibilities | Avoid unnecessary termination and rehire. Validate any changed terms or reporting arrangements. |
| Business or identifiable business part transfers | Section 613a BGB, if its conditions are met | What economic unit moves; assets, workforce and organization; worker's connection to it | Existing employment rights and duties transfer by law, subject to the worker's objection right. |
| Different employers without a qualifying business transfer | Consensual contractual transfer, or valid termination and new employment | Agreed documents; worker consent; rights schedule; lawful ending of A's employment where applicable | State precisely what continues, what is newly agreed and what A settles. |
Under section 613a, a business transfer has specific legal consequences. Continuing the same job for the same client does not by itself establish one. The Federal Labour Court distinguishes an economic unit retaining its identity from mere succession to an activity or service contract. Its security-services judgment supplies the test, rather than a ruling on every EOR switch.
For a worker integrated into the client's organization and subject to its instructions, check AÜG section 1. Agency supply generally requires a permit and an expressly identified agency arrangement before deployment. The default maximum is 18 consecutive months with the same hirer. Earlier assignments through another agency count where intervening breaks are no more than three months; applicable sector collective arrangements can change the maximum.
Consequently, moving a worker already near the applicable limit from EOR A to EOR B may fail to solve the underlying problem. Record the remaining lawful assignment period before selecting a date.
Review the existing service and employee position
Give the client project lead two separate review lists.
Commercial agreement
- Identify the contracting supplier, actual employing entity and proposed incoming employer.
- Read notice, minimum term, exit charges, refundable funds, final invoicing and record-access provisions.
- Confirm payroll funding cutoffs, service end date and who handles later corrections.
- Agree an extension or deferral process if employment or permission dependencies remain open.
Employee arrangements
- Collect signed terms, original service date, amendments and any collective or works agreements.
- Reconcile salary, comparable-worker pay, bonus, equity, leave, pension and insured benefits.
- Identify protected leave, pregnancy, disability-related protections, disputes and outstanding claims.
- Check residence documents, assignment history, payroll dates and social-insurance identifiers.
- Establish any works-council procedure and explain the proposed route to the worker before seeking signatures.
Ask EOR B for written confirmation of the employer, permitted arrangement, relevant licence where required, remaining assignment time and payroll owner. Ownership of a local company is insufficient evidence of permission to supply this worker.
The current agency guidance, effective 1 July 2026, includes a limited overseas online-working scenario outside the permit requirement. It concerns workers remaining outside Germany. It does not exempt an employee working from Berlin simply because the client is abroad.
Keep broader German hiring options separate from this handoff. If the existing arrangement cannot continue lawfully, changing infrastructure becomes a different decision.
Establish transfer and continuity treatment
Where section 613a applies, affected employees must receive information in text form before the transfer about its timing, reason, consequences and planned measures. They have one month after receiving the required information to object in writing. This is not a universal requirement to resign or a universal one-month advance notice period.
| Item | Statutory treatment to verify | Recognition or settlement needed | Who confirms |
|---|---|---|---|
| Service and probation | Qualifying business transfer continues existing employment | Outside it, specify recognized service and whether B waives probation; assess each statutory consequence separately | A and B employment leads |
| Notice and severance | Statutory, contractual and collective rules depend on the route; transfer-related dismissal is prohibited under section 613a | Record valid exit mechanism and any actual settlement entitlement or agreement | A, B and employee |
| Holiday | Continuing relationship differs from employment ending; untaken statutory leave may require payment on termination | Separate days taken, compensated and any additional contractual leave | A payroll; B verifies certificate |
| Protected leave and disputes | Existing protections require their own assessment | Record continuing obligations, approvals and responsibility for unresolved claims | Employers' employment specialists |
| Bonus and equity | Employment and plan documents determine the relevant entitlement | Confirm vesting, eligibility dates, accrued awards and each obligor | Employer and plan issuer |
| Pension and insurance | Statutory continuity does not establish identical new insurance or plan terms | Confirm pension treatment, premiums, exclusions and effective dates in writing | Employers and plan administrators |
| Work permission | Employer restrictions and statutory exceptions vary by title and mechanism | Resolve required permission or notification before the affected work | B and employee, with immigration authority |
A fresh contract recognizing an old start date does not settle every statutory waiting period or protection. Record the intended effect clause by clause.
Collective and works-agreement terms have specific treatment and exceptions under section 613a; confirm the applicable instruments rather than promising identical terms indefinitely.
If employment ends, section 623 BGB requires written form for termination and termination agreements and excludes electronic form. Ordinary notice under section 622 starts with four weeks to the fifteenth or month end, with employer periods increasing with service; contractual and collective provisions must also be checked. A mutually agreed ending is a separate mechanism. Commercial cancellation supplies neither employee consent nor a dismissal ground.
Where a works council exists, check hiring participation, including its threshold of generally more than 20 employees eligible to vote, and dismissal consultation. A provider project deadline cannot replace these procedures.
Set one coordinated cutover calendar
Worked example, entirely hypothetical: A German citizen works five days weekly in Berlin. Employment with EOR A began on 1 February 2026; assignment to this client began on 2 February, with no earlier assignment. The documented assessment finds no qualifying business transfer. The employee freely agrees to end A's employment and sign with licensed EOR B from Tuesday, 1 December 2026. The assignment remains within its verified limit.
Assume the service agreement permits month-end exit on at least 30 calendar days' notice, received Friday, 30 October, and permits an agreed extension if readiness fails. Assume unchanged EUR 6,000 monthly gross pay, already satisfying the applicable comparable-worker pay requirement; no additional contractual holiday; and no works council, protected-status issue or dispute. These are example facts, not standard provider terms.
| Milestone | Dependency | Outgoing EOR | Incoming EOR | Client or employee action | Completion evidence |
|---|---|---|---|---|---|
| 30 October: commercial notice | Actual notice clause and agreed contingency | Acknowledge proposed 30 November service end | Confirm proposed scope | Client delivers notice; keeps employment exit conditional | Receipt and extension terms |
| By 20 November: employee handoff and secure records | Route assessment; lawful data-sharing plan | Supply verified terms, balances and history | Issue employment offer and rights comparison | Employee reviews documents and raises questions | Document pack and exceptions log |
| 23 to 24 November: November contribution reporting | A's normal November payroll obligations | Submit contribution statement for receipt by 00:00 on 24 November | Use verified inputs for calculation test only | Client ensures A has required funds | Filing acknowledgement |
| 25 November: incoming readiness gate | Employer, route, consent, work authorization, benefits, data and funding validated | Confirm final-pay and leave plan | Hold signed employment documents, enrolment plan and cleared December funds | Client funds B; employee agrees terms | Signed readiness record; cleared funds |
| After work, 26 November: employment exit agreement | Gate passed; free agreement; valid written form | Sign agreement ending employment on 30 November; pay November contributions due 26 November | Keep 1 December start confirmed | Employee signs paper agreement | Executed originals; contribution receipt |
| 27 and 30 November: leave; final A payroll on 30 November | Verified holiday balance and final calculation | Grant two leave days; pay November wages and remaining holiday compensation | Prevent duplicate settlement | Employee receives payslip and holiday certificate | Bank confirmation; certificate |
| 1 to 2 December: employment and benefits handoff | All start conditions effective | End employment-linked supplementary cover on 30 November; complete departure reporting | Start employment and replacement supplementary cover on 1 December; complete entry reporting | Employee checks access and insurer details | Enrolment confirmations; filing responses |
| December: B's first payroll and reconciliation | Validated tax records; funded payroll | Resolve A-period exceptions | Contribution statement received by 00:00 on 22 December; contributions due 28 December; wages paid 30 December | Client approves calculation; employee checks payslip | Accepted filings and reconciled payments |
The contribution dates follow the 2026 AOK calendar. Sending on 23 November and 21 December avoids confusing a midnight receipt deadline with the end of that day. A's ordinary November duties continue before the switch is irrevocable.
A covers 1 to 30 November; B covers 1 to 31 December. The assumed December wage payment on Wednesday, 30 December is agreed in advance. Berlin's Christmas holidays fall on Friday, 25 December and Saturday, 26 December. Confirm bank cutoffs separately; adapt the calendar to the worker's state and actual contract.
Social-insurance entry reporting is due with the first following payroll, within six weeks at the latest; departure reporting follows the next payroll, also within six weeks. The example schedules both on 2 December. For these start/end dates, the six-week outer dates are 12 and 11 January 2027 respectively; an earlier payroll deadline still controls.
For employers filing wage tax monthly, section 41a EStG makes November's return and payment due on 10 December. Assign later tax filings and corrections even after service termination.
If the 25 November gate fails, the client owns the deferral and written extension. Do not sign the employment exit on 26 November. Continuing with A also requires a still-lawful assignment and permission.
Reconcile transition costs and cash
| Fee, liability or funding item | When due | Responsible party | Refund or settlement treatment |
|---|---|---|---|
| Service exit or minimum-term charge | Actual agreement | Client under agreed terms | Obtain itemized final invoice; do not assume a charge applies |
| A-period wages, contributions and tax | Payroll and statutory dates | A as employer; client funds as contracted | A remains accountable for its period |
| Notice or agreed settlement | Confirmed employment route | A, with contractual client funding where agreed | Identify legal basis and payment date separately from service fees |
| Untaken holiday | Employment ending, where payment is required | A payroll | Reconcile certificate before B loads any balance |
| B's first payroll, benefits and fees | Agreed funding cutoff | Client funds B; B operates payroll | Maintain a separate opening cash reconciliation |
| Overlap costs or held funds | Actual contract and final reconciliation | Client and relevant EOR | Confirm permitted offsets and refund timing; budget until received |
In the worked case, the employee has a verified 20-day statutory entitlement for 2026 and has taken 16 days before signing the exit agreement. The five-day-week equivalent of statutory minimum leave is 20 days; the six-month waiting period is complete and this is a second-half-year exit. Two further days are taken on 27 and 30 November. The remaining two cannot fit before employment ends.
Section 7 BUrlG requires compensation where termination prevents remaining leave being granted. Assume relevant earnings over the final 13 weeks are EUR 18,000, with 65 working days and no pay changes or other adjustments. Following the holiday-payment formula:
EUR 18,000 ÷ 65 × 2 = EUR 553.85 gross holiday compensation.
A's November gross reconciliation is EUR 6,000 + EUR 553.85 = EUR 6,553.85, before deductions. This is neither net pay nor the complete employer funding requirement.
A's certificate records 18 days taken + 2 compensated = 20 days. Under section 6 BUrlG, B must account for holiday already granted by the previous employer and obtain the termination certificate covering granted or compensated leave. B must not also credit those settled two days as unpaid carryover. Any extra agreed leave is separately identified.
The client funds B by 25 November for December's EUR 6,000 gross salary plus separately calculated employer costs, benefits and fees. A's historical year-to-date earnings are reference data, never another live wage payment or funding demand.
Test the first payroll and close the old arrangement
Mark each control pass only against evidence. An unexplained difference is a fail with a named owner.
- Wage periods: A ends on 30 November; B starts on 1 December. Only one live payroll pays each period.
- Historical values: Validate year-to-date earnings, contribution bases and prior payments. Distinguish historical reference fields from B's own taxable earnings and filings.
- Tax setup: Match tax ID, birth date and main/secondary-employer status. Check actual ELStAM responses, rather than copying a tax class from an old payslip.
- Social insurance: Match insurance number, health fund, employer references and reporting dates; reconcile accepted filings, contributions and later adjustments.
- Benefits: Confirm actual coverage dates and pension treatment. A signed service order alone does not establish insurance cover.
- Balances and cash: Reconcile the holiday certificate, EUR 553.85 settlement, final invoices, B's opening funds and any refund still owed.
- Closure: A closes its wage-tax account for this employee and supplies the wage-tax certificate; retain named responsibility for corrections and statutory records.
Parallel testing means comparing calculations without releasing a second bank file or duplicate filing.
Transfer necessary records through an access-controlled channel. Employee-data rules make necessity and the basis for processing important; employee consent is not automatically freely given. The privacy owner must assess sensitive information and overseas access separately. The client should receive only the information needed for its role.
If A delays or refuses records, the client project lead escalates while B's payroll lead identifies the minimum verified inputs: signed terms, pay and service history, assignment dates, tax and insurance identifiers, prior payroll/contribution records, leave certificate and benefit arrangements. Employee-held documents can assist lawful reconstruction. B must validate sufficiency; guessed balances or tax settings fail the gate. Before employee exit, defer where reliable reconstruction is insufficient.
On 20 November, the employee receives the new employer's name, proposed dates, rights comparison, leave settlement, pay dates and coverage changes. Explain which provisions are statutory and which B agrees contractually. The example gives until 25 November to agree B's terms, with a separate voluntary paper exit on 26 November. Those are planning dates, not statutory consent deadlines. A answers final-pay questions; B answers first-pay and benefits questions; the client lead owns unresolved handoffs.
Two employee situations that change the switch
Independently authorized worker: conditional December completion
The German citizen in the worked example needs no employer-linked residence amendment. Completion on 1 December remains conditional on the documented fresh-employment route, voluntary agreement, B's lawful agency arrangement and the 25 November gate.
B agrees no new probation and recognizes 1 February service for the expressly listed contractual benefits and notice calculation. This does not turn fresh employment into a statutory business transfer. A settles the EUR 553.85 balance; supplementary cover changes on the agreed dates; the same-client assignment history continues.
The equal-treatment rules also matter to payroll. Equal treatment is the starting point. Qualifying collective agreements may permit pay deviations for the first nine months; longer deviations require statutory stepped progression and tariff-defined equivalent sector pay by 15 months at the latest. Previous same-hirer assignments can count for those limits too. B must retain the history rather than restart a cheaper pay schedule.
Employer-linked permission: the proposed route can fail
Assume instead that the worker's residence permission names A and that B's proposed agency employment requires Federal Employment Agency consent. Section 40 AufenthG requires that consent to be refused for temporary agency work. Extra onboarding time cannot cure that route restriction.
Check the exact title and supplementary conditions. Section 4a restricts changing specified employment without the relevant permission and contains special treatment for a genuine section 613a transfer. That exception cannot be assumed for a provider change.
EU Blue Cards also require a distinct analysis: section 18g includes categories issued without Federal Employment Agency consent and permits an employer change without immigration-authority permission, subject to possible suspension and rejection during the first 12 months. The holder must notify relevant changes during that period. This does not establish eligibility for every EOR arrangement.
B and the worker must resolve the applicable route and effective permission position before exit. A must notify qualifying early endings within four weeks of learning of them under section 4a; holders of the residence permits covered by section 82(6) have a separate two-week duty. If authorization cannot support B's arrangement, defer or choose another lawful route; do not promise work during a permission gap.
Questions about switching EOR in Germany
Does changing EOR reset the 18-month limit?
For assignments governed by AÜG section 1(1b), prior time with the same hirer counts even through another agency where breaks are no more than three months. Verify applicable collective variations and the full history.
Must the employee resign?
Determine the mechanism first. The employer may remain unchanged, section 613a may apply, or an agreed contractual route may be needed. Resignation should never be a preliminary migration step.
Can B promise to preserve all seniority rights?
Ask for an itemized rights schedule. Statutory continuity and agreed contractual recognition have different foundations; a backdated service field cannot establish every legal consequence.
Can unused holiday simply move into B's system?
Only after the mechanism and balances are reconciled. Continuing employment differs from termination with compensation. The worked example settles two days through A and documents the full 20-day position.
How long does a German EOR switch take?
There is no universal migration period. The permissible date follows the transfer mechanism, actual notice, worker agreement, assignment limit, permission, benefit arrangements and payroll readiness.
Borderless AI's EOR service covers employment administration, contracts, payroll and benefits. Discuss the proposed German arrangement with us, starting with the legal employer, assignment history and worker's permission. Confirm country and case eligibility before committing to an exit date.
