Posting employees to Germany: How the A1 certificate works for employers in the EU

If companies temporarily post employees from an EU member state to Germany, they require a A1 certificate. This confirms that the employee will remain in the social security system of the posting country and will not be subject to compulsory insurance in Germany. It is important for employers to understand this procedure in order to avoid legal and financial risks.

1 What is the A1 certificate?

The A1 certificate is proof for posted workers that they remain insured in the social security system of their home country during a temporary assignment in Germany. This prevents a double social security obligation in Germany and the home country.

Practical example:
A French construction company sends several workers to Germany for a six-month project. With the A1 certificate, the workers remain socially insured in France and do not have to pay German social security contributions.

2 When is an A1 certificate required?

An A1 certificate is required in the following cases:

1. Posting of employees: If an employee works temporarily in Germany for a company from another EU country.
2. Business trips: Also for short business trips within the EU, e.g. for meetings or training courses.
3. Self-employed persons: If a self-employed person works temporarily in another EU country and does not wish to enter into a new social security obligation there.

Important:
The A1 certificate is required regardless of the duration of the posting - even for a single working day!

3. who applies for the A1 certificate?

The A1 certificate must be issued by Employer must be applied for in the employee's home country. The competent authority varies from country to country, usually the social security authority or the employee's health insurance fund.

Practical example:
A Polish IT company sends a software developer to Germany for three months. The employer applies for the A1 certificate from the competent Polish social security authority (ZUS).

4. applying for an A1 certificate: step-by-step instructions for employers

1. Check whether a posting exists: The employee continues to work for the company in their home country and is only sent to Germany temporarily.
2. Submit an application: The employer applies for the A1 certificate from the competent authority in the home country.
3. Electronic transmission: In many countries, the application is only possible digitally.
4. Receive & carry certificate: The employee must be able to present the A1 certificate at any time during their stay in Germany.

Tip for employers:
Apply for the A1 certificate as early as possible, as checks in Germany are increasing. Fines may be imposed without an A1 certificate!

5. risks in the absence of an A1 certificate

Without a valid A1 certificate, there may be legal problems for employers and employees:

• social security contributions are due in Germany: If the A1 certificate is missing, German authorities can demand that social security contributions are paid retrospectively in Germany.
• Fines: German authorities can impose heavy penalties on companies if an A1 certificate cannot be presented.
• Problems with business trips: Checks may result in delays or even a refusal to start work.

Practical example:
A Spanish manager travels to Germany for a two-day conference. During an inspection, he is unable to produce an A1 certificate. The company has to pay social security contributions in Germany.

6. special cases & simplifications for employers

Long-term postings (more than 24 months): In such cases, an exemption can be applied for so that the employee remains covered by social security in their home country.
Multiple business trips: Some countries offer simplifications for employees who regularly work in several EU countries.
Post-Brexit regulations: Different regulations apply to British employees, which must be checked individually.

Practical example:
An Austrian project manager regularly works on construction projects in Germany and France. He can apply for a long-term A1 certificate to avoid social security problems.