Posting vs. Business Trip – What Matters Legally and Fiscally

‍Definition of Posting vs. Business Trip

It’s important to clearly differentiate the terms:

• Business Trip Definition: A business trip is a temporary work-related assignment outside the employee’s regular workplace, typically within the same country – but increasingly also abroad. The employer remains based in Germany.
  
• Posting Definition: A posting occurs when an employee temporarily works in another country but remains employed and paid by their German employer. The duration and nature of the activity may vary, but the decisive factor is that the work is performed on behalf of the employer outside of Germany.
  

This distinction has significant implications for reporting obligations and legal requirements.

A Business Trip is Also a Posting – Legally Speaking

A common misconception is that a business trip abroad is not considered a posting. In fact, under social security law, every business trip abroad automatically qualifies as a posting.

What does that mean?

Whether an employee travels abroad for a meeting, training session, or conference – even for just a few hours – it counts as a posting under the EU Regulation on the coordination of social security systems.

Why is this important?

The so-called A1 certificate is mandatory – even for a one-day trip. It confirms that the employee remains covered by the German social security system and does not need to be insured in the host country.

A1 Certificate – Mandatory from Day One

Another common misunderstanding:

“A posting only needs to be reported after a longer stay.”

This is incorrect. The obligation to apply for an A1 certificate applies from the first day of any work activity abroad – even if the stay lasts only a few hours.

Also incorrect:

“Participation in conferences or training sessions is exempt.”

Even in these cases, an A1 certificate is required. As soon as an employee is active abroad – even passively by attending an event – social security regulations apply.

And finally:

“Once applied for, always valid.”

Wrong again. A new A1 certificate must be applied for every individual business trip, unless it involves regular cross-border activity that has been reported as such.

What’s Required for a Posting or International Business Trip?

Anyone sending employees abroad – whether for a conference or a project – must observe several legal requirements:

A1 Certificate

Confirms that the employee continues to be covered by German social security and does not fall under the host country’s system.

Notification to Host Country Authorities

Many countries require an additional posting notification, usually through online portals. This obligation also applies to short-term stays.

Country-Specific Requirements

Depending on the destination country, additional rules may apply, such as:

• Minimum wage regulations (e.g., in France or Luxembourg)
  
• Permanent establishment rules, if the activity constitutes a lasting economic presence
  
• Occupational health and safety requirements (e.g., proof of working hours, accommodation, employment contracts in the local language)
  
  

Tax Implications

Depending on the length or frequency of the stay, tax obligations may arise in the host country – such as income tax liability or the creation of a permanent establishment.

Support for Postings & Business Trips with premote

A business trip abroad can quickly become a posting with extensive legal obligations. Companies should therefore clarify the following during the planning stage:

• Is it a simple business trip or a posting?
  
• Is an A1 certificate required?
  
• What additional notifications or regulations apply in the destination country?
  
  

Complying with all requirements is complex – especially with frequently changing countries, various reporting portals, and country-specific labor laws or wage regulations. Those seeking legal certainty benefit from the intuitive, automated solution offered by premote.

We guide companies digitally and in full legal compliance through all processes related to postings and A1 certificates – from application to country-specific notifications and adherence to local regulations. Particularly convenient: premote also supports short-notice business trips and ensures that all documents are submitted accurately and on time.

With premote, companies minimize liability risks while relieving pressure on their HR and travel departments – efficiently, digitally, and securely.

‍

‍

Die auf dieser Website bereitgestellten Informationen stellen keine Rechtsberatung dar und sollen keine rechtlichen Fragen oder Probleme behandeln, die im individuellen Fall auftreten können. Die Informationen auf dieser Website sind allgemeiner Natur und dienen ausschließlich zu Informationszwecken. Wenn Sie rechtlichen Rat für Ihre individuelle Situation benötigen, sollten Sie den Rat von einem qualifizierten Anwalt einholen.