According to an immigration update published on 18 December, companies that hire third-country nationals under German local contracts will have to give those employees written notice—by their first working day—of their right to free labour-law counselling at recognised advice centres. The obligation stems from amendments to the Act on the Employment of Foreigners aimed at preventing exploitation and wage dumping.
Employers may satisfy the rule by attaching an information sheet to the employment contract and retaining signed acknowledgment. Failure to comply can trigger fines of up to €30,000 and may jeopardise future work-permit sponsorships during compliance audits.
![New employer duty: inform foreign staff about free legal advice from 1 January 2026]()
For global mobility teams, the new duty adds another onboarding checklist item alongside existing requirements to copy passports and residence permits and to report early terminations within four weeks. Best practice is to integrate the counselling leaflet into digital contract-management systems so that HR obtains automatic confirmation.
Because the rule applies only to local hires, assignees remaining on home contracts are unaffected. Nevertheless, experts recommend extending the information voluntarily to secondees to foster a culture of compliance and transparency.
Employers may satisfy the rule by attaching an information sheet to the employment contract and retaining signed acknowledgment. Failure to comply can trigger fines of up to €30,000 and may jeopardise future work-permit sponsorships during compliance audits.
For global mobility teams, the new duty adds another onboarding checklist item alongside existing requirements to copy passports and residence permits and to report early terminations within four weeks. Best practice is to integrate the counselling leaflet into digital contract-management systems so that HR obtains automatic confirmation.
Because the rule applies only to local hires, assignees remaining on home contracts are unaffected. Nevertheless, experts recommend extending the information voluntarily to secondees to foster a culture of compliance and transparency.
Source: Crown World Mobility
