Lithuania: bnt advises leading company on temporary employment

Stricter and more complex regulations in the area of cross-border temporary employment increase the need for advice.

In recent years, the rules for cross-border supply of temporary employees have become increasingly strict – be it through implementation of the Posting of Workers Directive 96/71/EC or through stricter practices by the authorities in the EU host Member State.

In addition to applications for the grant and extension of permits for supply of temporary employees, the labour law practice of bnt attorneys in CEE has also increasingly supported companies during audits — which the authorities are also increasingly conducting without valid reason.

In particular, in recent months and years we have assisted numerous Lithuanian companies that provide employees from a wide range of industries to work in Germany. The practice of the competent Federal Employment Agency has become increasingly complex in recent years, so that even blameless companies have to seek legal advice, especially in order to comply with the complicated minimum wage and documentation requirements in Germany. Providing temporary employment services involves having to use model contracts. These, too, are subject to increasingly strict requirements. In addition, there are tax hurdles. In cross-border assignments, it is particularly important to harmonise the labour and social law of the two EU Member States and still find the most cost-effective solution for the client.

In this context, bnt attorneys in CEE has assisted one of the largest companies in the field of temporary employment in the Baltic States, several times with an extension of its permit for temporary employment. This involved not only advising, preparing documents and representation before the German authorities (Employment Agency and German Tax Office), but also — most recently — comprehensive support during a tax audit by the German authorities, which resulted in a successful outcome for the client, with assistance from bnt attorneys in CEE, in particular due to our experience with German authority practice.

Directive 96/71/EC concerning the posting of workers in the framework of the provision of services Directive 96/71/EC concerning the posting of workers in the framework of the provision of services

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