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Whether in the tourism and construction industries during the summer months or in agriculture during the harvest season for asparagus, strawberries, and more: Without these seasonal workers, many companies would not be able to handle the high seasonal workload.
What should be considered when employing seasonal workers?
Seasonal workers are employed in companies where the workload is heavily dependent on the season. This means they are always hired for a limited period. What are the labor and social security regulations in this context? What rules must you follow when employing seasonal workers? Are there any exceptions?
Below is a brief overview of the key points.
Labor Law
Seasonal workers are subject to the same labor law conditions as all other employees.
Typically, they are employed under a fixed-term contract with an objective reason.
A calendar-based fixed-term contract (without objective reason) is also possible. However, if you repeatedly employ seasonal workers over several years without providing an objective reason, they may gain entitlement to a permanent position.
For fixed-term contracts, you should always include a clause allowing for termination during the contract period, as this is otherwise not permitted.
Workers from non-EU countries must obtain a work permit. Refugees may also need approval from the immigration office and, in some cases, the employment agency, depending on their residency status.
Additionally, for seasonal workers from non-EU countries:
Every application for entry into an EU country as a seasonal worker must include a valid employment contract or a binding job offer specifying wages and working hours. The conditions for entry and residence of third-country nationals for seasonal work are regulated by the EU Seasonal Workers Directive.
Social Security Law
Seasonal workers are subject to the same social security regulations as other employees, meaning seasonal employment can lead to mandatory insurance coverage.
Employment of seasonal workers is only exempt from social security contributions if it qualifies as short-term employment (a maximum of three months with a five-day workweek, or up to 70 working days if working fewer than five days per week).
Additionally, short-term employment must not be the worker’s main source of income. It is considered professional employment if the worker relies on it for their livelihood (e.g., unemployed individuals who deregister from unemployment for the job).
A special case applies to workers from other EU countries:
They are exempt from social security contributions in Germany if they present an A1 certificate, which proves that only the social security laws of their home country apply. However, the employer may still need to pay contributions in that country.
The same accident insurance rules apply to seasonal workers as to permanent employees.
Wages paid to employees are only exempt from U1 compensation procedures if the employment relationship is limited to a maximum of four weeks from the start.
Income Tax
Income tax must be deducted for all seasonal workers. The same rules apply as for long-term employees.
However, for seasonal workers in agriculture and forestry, a flat tax rate of 5% may be applied under certain conditions (§ 40a (3) EStG). The Deutsche Rentenversicherung Knappschaft-Bahn-See is responsible for collecting this tax.
Foreign workers are subject to limited tax liability if they have no residence in Germany and stay for no longer than six months. In this case, their income earned in Germany is taxed here via payroll withholding.
Note:
Employees with limited tax liability who earn at least 90% of their total income in Germany can apply to be treated as fully taxable in order to access benefits (e.g., eligibility for child benefits for the months of employment).
Wages
Seasonal workers must not be paid below the minimum wage set by the Minimum Wage Act (MiLoG). Employers must be able to verify compliance both contractually and through daily records. This means maintaining accurate daily documentation of start time, end time, and working hours.
In seasonal work, additional benefits such as allowances or in-kind compensation (e.g., for food and accommodation) are common. These can be included in minimum wage calculations under certain conditions:
- The worker must receive a net salary at least equal to the garnishment exemption threshold.
- Allowances or in-kind benefits must be compensation for regular work (not hardship bonuses).
- There must be a clear agreement between employer and employee.
- Certain valuation limits for in-kind benefits must not be exceeded.
Tip for agricultural businesses
To attract seasonal workers, the German Agricultural Employers’ Association has set up an online platform. At www.saisonarbeit-in-deutschland.de, farmers can quickly and affordably introduce their business to seasonal workers in multiple languages.
