Employers may soon have greater flexibility to extend certain assignments in Germany without requiring employees to leave the country. The German Federal Employment Agency (BA) has confirmed that nationals of Australia, Israel, Japan, Canada, New Zealand, the Republic of Korea, the United Kingdom and the United States may be able to transition from an ICT permit or personnel exchange assignment to Section 26(1) BeschV without leaving Germany, even after reaching the maximum duration of their original assignment category. This removes a long-standing area of uncertainty and may help employers avoid assignment interruptions in certain cases.
For many years, uncertainty existed regarding whether employees who had exhausted the maximum duration of an ICT permit or personnel exchange assignment could continue their stay in Germany under Section 26(1) BeschV.
The BA’s administrative guidance previously stated that secondments are temporary in nature and that, once the maximum duration of a secondment-based category had been exhausted, a further secondment would generally require a six-month period outside Germany, even if pursued under a different legal basis. This was widely understood to prevent a transition from ICT and personnel exchange assignments to alternative assignment routes, including Section 26(1) BeschV.
The BA has now confirmed that its internal consultations have been completed and that its guidance will be amended. According to the announced approach, a transition to Section 26(1) BeschV within the framework of an ongoing secondment should be possible without requiring the employee to leave Germany. The revised position has already been communicated internally to the relevant authorities.
This development may provide valuable flexibility for employers with assignees who are approaching the maximum duration of an ICT permit or personnel exchange assignment.
Where eligible employees are nationals of one of the countries specifically covered by Section 26(1) BeschV, employers may be able to continue the assignment by transitioning the employee to Section 26(1) BeschV rather than requiring a six-month interruption abroad.
However, employers should keep in mind that secondments must remain temporary in nature. The revised interpretation should not be viewed as creating an unlimited or permanent assignment route. Even where a transition to Section 26(1) BeschV is possible, the assignment must continue to be structured as a genuine temporary secondment and should remain limited in duration.
Companies should therefore continue to assess whether the overall assignment timeline remains consistent with the temporary nature of a secondment or whether a different residence category may be more appropriate for long-term or permanent deployments.
We can help employers assess whether this new approach creates additional assignment planning opportunities and support implementation where appropriate, including by:
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Mostafa Massoud
Partner
Inga Mayer
Senior Manager
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