As digitalization accelerates, the “Employer of Record” (EoR) model has become an attractive solution for hiring international talent. However, in October 2024, Germany’s Federal Employment Agency flagged significant legal risks in its updated guidelines under the Employee Leasing Act (AÜG), discouraging its use. Following strong criticism from legal experts, the agency has now made a surprising U-turn and revised its guidance once again. What is the EoR model, why was it controversial, and what do these changes mean for businesses?

Find out more in the latest HR News blog post by Janek Joosten.

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