There are many important factors to consider when engaging or placing international contractors in Germany to ensure full compliance with local laws and regulations. One of the most crucial factors is ensuring that your contractors have the right to work in Germany and the relevant permissions and permits. There are a number of options available, one of which is the EU Blue Card. However, not every option may be the right fit for your candidates. At 3C Global, we regularly review EU Blue cards for Germany to ensure our clients, recruiters & contractors remain fully compliant with local laws when engaging candidates for new roles.
What is the EU Blue Card?
The EU Blue Card is a work and residence permit for highly skilled professionals from outside the European Union. This permit has surged in popularity in recent years. Currently, the EU Blue Card applies across 25 of the 27 member states of the EU, including Germany. Holders of this type of permit can live and work in a participating EU country provided that they secure a qualifying job offer that meets the minimum salary criteria (This wage requirement is usually 1.5 times higher than the national average wage). The EU Blue Card is a temporary permit typically valid for the duration of the work contract or until the permit expires (usually the earlier of the two). The expiry date/maximum duration of the Blue Card is generally set by each country and therefore varies across member states. However, most participating countries offer holders the option to renew if they meet the criteria and continue to hold a valid employment contract.
While the qualifying criteria for the EU Blue Card differ between participating countries, applicants are generally required to have
- A binding offer of employment or contract.
- Be highly skilled, possessing the relevant qualifications and/or professional experience.
- A valid passport with a minimum of 15 months' validity remaining
- Health insurance for themselves and any dependents they may have.
- Meet the minimum wage requirements (usually above the national average).
What recruiters must know about the EU Blue Card when engaging talent in Germany:
While an EU Blue Card does, in many instances, grant the right to work for those who meet its criteria, for example, those employed under traditional means in permanent roles, this is not the case for freelance roles. In summary, an EU Blue Card does not automatically grant a candidate the right to work as a freelancer in Germany. Understanding the limitations of this permit is essential when engaging freelance talent in Germany. Failure to select a permit that is the right fit for your candidate, thereby granting them the right to work in Germany, can be frustrating for both the client and the candidate, causing delays and other serious issues for your agency.
Two real-world examples:
Recently, our team encountered two instances where recruiters had submitted candidates' CVs for freelance roles. The candidates were then put forward and invited to interviews with the client. The candidates were successful in their interviews and subsequently received their offers of employment, only to make a devastating discovery. The candidates discovered that they did not have the right to work as freelancers under the current EU Blue Card regulations. This discovery subsequently led to panic among the candidate, the recruiter, and frustration from the client. Why did this happen? We discuss.
➡️Agency No. 1: Offer made - The candidate held an EU Blue Card.
A candidate holding a valid EU Blue Card was eager to take a new freelance role in Southern Germany. However, the permit stated:
❌ "Selbständige Erwerbstätigkeit nicht erlaubt" (Self-employed activity not permitted)
While the EU Blue Card offers some flexibility after two years, in this instance, the candidate held the card for a period significantly less than two years. As a result, the "Selbständige Erwerbstätigkeit nicht erlaubt" clause overrode any flexibility the Blue Card offers after two years, as the candidate had held the card for a period significantly less than that, meaning that they had no immediate right to work as a freelancer.
➡️Agency No.2: Offer made - Candidate held EU Blue Card – Same permit type & same restriction as first case.
Another candidate, in a different city, same outcome. Their permit also included:
❌ "Selbständige Tätigkeit nicht gestattet" (Self-employment not permitted)
Even with a long-term contract and an offer on the table from a willing client, a freelance contract was off the table because the right to work permit in place was incorrect. The candidate did not meet the requirements of the European Blue Card. In this case, the European Blue Card was not the correct permit solution for the candidate.
Why did this happen?
The European Blue Card can be very complex to navigate, even for experienced recruiters, particularly when the cardholder is looking to take on a role on a freelance or contract basis.
In-depth knowledge of German labour laws, residence/work permit requirements and the European Blue Card is essential.
Failure to select the correct permit for your candidate can result in them not being granted a right to work in Germany, thus causing issues such as delays, administrative burden, reputation damage and more.
Engaging freelance or contract talent in Germany?
When engaging international contractors or freelance talent in Germany, it is essential to select the permit that best suits your talent in terms of their right to work and compliance. Ensuring that candidates secure the right to work, and thus can be onboarded quickly and compliantly, is essential, particularly when filling time-sensitive positions.
Navigating visas, permits, and right-to-work permissions for international candidates can be complex. But with the right partner, it doesn't have to be.
At 3C Global Group, our team is on hand to help you seamlessly navigate visas, permits and right to work permissions for your candidates.
With a highly personable, human-first approach, we simplify complex international workforce compliance, enabling our clients to seamlessly and confidently engage international talent. Our expert team are on hand to provide our clients with fully compliant solutions that remove administrative burdens and mitigate risks when engaging talent in Germany, from providing guidance on visas, permits and right to work permissions to offering indemnification support and insurance coverage, as well as invoicing and payment support for contractors, to streamlining onboarding and managing contract administration, conducting background checks and verifications on behalf of your organisation, and more.
With 3C Global Group's tailored solutions and end-to-end support, you can seamlessly engage and onboard contract talent quickly and easily in Germany, whilst mitigating risks associated with non-compliance and misclassification.
Your trusted compliance partner in Germany:
At 3C Global, we provide end-to-end solutions tailored to your specific needs.
We offer a wide range of services, including:
- Labour Leasing in Germany (AÜG/ANU)
- A German Employer of Record (EOR) solution.
- Global Payment Solutions (GPS)
- Agent of Record (AOR)
- International Contractor Management (ICM)
- International Contractor Compliance Audit (ICCA)
- Advisory, Consulting & Training (ACT)
Our services are meticulously designed to remove potential risks and uncertainties associated with launching new projects, allowing all parties to focus on their core business objectives, knowing that their contracts and practices are fully compliant.
Contact 3C Global Group today to learn how we can help you engage, hire, and place contractors quickly, compliantly and competently in Germany.
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