Payroll accounting holds many hurdles for startups. The fact alone that there are more than 100 health insurance companies in Germany causes a not to be underestimated administrative burden. New employees who have moved from another company to the start-up often express wishes regarding deferred compensation and the assumption of supplementary insurances from which they had already benefited in their previous contract. The intricacies of German social and labour law pose great challenges for the HR department of the parent company, which is usually still foreign. We work out the specific German labour and social law requirements together with you and offer comprehensive advice in the process. The software solutions that start-ups usually like to use to carry out payroll accounting themselves offer only limited answers. Good counselling is usually the better and safer way. Here, problems can be solved quickly through short channels such as via telephone, and not only when the relevant authorities inspect the company or when omissions arise when the employment relationship is terminated. In these cases, solutions can only be found with great difficulty and capital investment. Good advice from Ad Fontes is also the better way here, at least until the subsidiary has also been able to set up its own HR department.

German labour law also holds many surprises. The fact alone that a termination in Germany must be in writing to be effective should not be underestimated in practical terms. An e-mail does not fulfil this written form requirement and there will be unpleasant surprises in the labour court proceedings at the latest if the procedure is not exactly in accordance with the requirements of German labour law. In order to prevent the immediate rejection of a dismissal, we develop solutions for our clients that are in line with their interests, e.g. by appointing an authorised signatory in the German subsidiary (where possible). This is usually the simpler option compared to a power of attorney, as the latter must always be presented in the original in the event of termination.