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Europe-HR-solutions offers international HR expertise to small and midsized companies who are looking to expand their current business or organization in Europe.
Looking to bring several employees from different countries on board? You need to understand the legal & tax requirements of hiring staff in Europe so you don’t hit any rough waters down the line.
You are obliged to recruit personnel initially in the European Economic Area (EEA) and/or Switzerland. Only if you prove that you cannot find suitable personnel here, you will be permitted to recruit from other countries.
You are obliged to verify the identity of all workers on the basis of an original identity document when they join your company. You must keep a copy of the identity documents in your records.
Apply for a work permit (if needed)
If you employ someone who is not from the EEA or Switzerland or who comes from Romania or Bulgaria, you must apply for a work permit from the Public Employment Service.
Register as an employer with the Tax Administration
If you are employing personnel for the first time, you must register as an employer with the Tax and Customs Administration. You will then receive the necessary forms to meet your payroll tax obligations.
Ask your employees for a tax and social insurance number
Foreign employees who do not have a citizen service number must provide you with a tax and social insurance number. They themselves must apply to the Tax and Customs Administration for this number.
Enter into a contract of employment
In a contract of employment, you specify the employee’s salary, indicate whether a Collective Labor Agreement applies, outline working hours and holidays, and indicate whether you arrange an employee pension scheme and or other local benefits.
Everyone working in Europe is entitled to the statutory minimum wage and a holiday allowance. This also applies to temporary workers, flex workers and foreign personnel.
As an employer, you must ensure a healthy and safe work place for all your personnel. The Labor Inspectorate or your sector organization can provide you with information about the rules.
Check whether you are required to deduct social insurance premiums
You must deduct social insurance premiums for employees who work permanently in Europe. You can choose to become a self-insurer for the occupational disability & death insurance, travel insurance, health care and or other insurance schemes.
Obligations regarding reporting and documentation
Regular statistical reporting duties related to employment; Special obligation regarding information and documentation; Obligation to maintain a personal register; Obligation to inform employees of the conditions applicable to the contract or employment relationship.
Obligations in case of a dismissal
Regular obligation to justify dismissal; Obligation to pay compensation in case of a dismissal for economic reasons; Observation of a specified notification period for the dismissal during the probationary period.
Other obligations part of employment handbooks
Special obligations regarding the calculation and registration of the working time (in addition to what is necessary for business reasons); Special obligations regarding the calculation and registration of holidays; Obligation to join a certain organization / association when becoming an employer.