Question 1

What is an Employer of Record (EOR)?

Accepted Answer

An Employer of Record is a third-party organization that legally employs workers on your behalf. While you manage daily work and performance, Virmondo EOR handles employment contracts, payroll, taxes, benefits, and compliance with local labor laws. Your team members work for you in practice but are employed by Virmondo EOR on paper, eliminating the need to set up your own legal entity in Germany, Austria, or Switzerland.

Question 2

How is Virmondo EOR different from global EORs like Deel or Remote?

Accepted Answer

Virmondo EOR specializes exclusively in the DACH region (Germany, Austria, Switzerland), while global EORs spread their expertise across 150+ countries. This means we have deeper knowledge of German Works Councils, Austrian collective agreements, Swiss cantonal tax variations, and local employment nuances. We also bundle recruiting services, something global EORs don't offer. You get a dedicated DACH expert team, same-timezone support, and native German speakers rather than outsourced call centers handling dozens of countries.

Question 3

How quickly can you hire someone in Germany?

Accepted Answer

Typically 2-4 weeks from signed agreement to first day of work. This compares to 6-12 months for entity setup. The timeline includes: contract preparation (2-3 days), employee onboarding documentation (3-5 days), and benefits enrollment (1-2 days). If the employee requires a work permit or visa, this may add 4-8 weeks depending on their nationality and the visa type.

Question 4

What does Virmondo EOR cost?

Accepted Answer

Our pricing is simple and transparent. EOR services cost €599 per employee per month. If you use our recruiting services, there's a one-time €1,000 hiring fee per successful placement. That's it. No setup fees, no hidden costs, no percentage of salary.

Question 5

What's included in the €599/month fee?

Accepted Answer

Everything related to compliant employment: employment contracts drafted by local lawyers, monthly payroll processing, tax withholding and filing, social security contributions, statutory benefits administration, HR support, compliance monitoring, employee onboarding, and termination management when needed. You pay the employee's gross salary plus employer contributions separately.

Question 6

Why can't I just hire contractors in Germany?

Accepted Answer

Germany has strict rules against "disguised employment" (Scheinselbstständigkeit). If a contractor works exclusively for you, follows your direction, uses your tools, and integrates into your team, German authorities will reclassify them as employees. Penalties include back-payment of social contributions (up to 4 years), fines up to EUR 500,000, and potential criminal liability for executives. Using an EOR eliminates this risk entirely.

Question 7

What is an AUG license and do you have one?

Accepted Answer

AUG (Arbeitnehmerüberlassung) is Germany's temporary staffing license required for EOR arrangements. It's often called "labor leasing." Yes, Virmondo EOR holds a valid AUG license from German authorities, which we renew regularly. We can provide documentation upon request. Operating without this license is illegal and exposes clients to significant liability.

Question 8

How do you handle terminations in Germany?

Accepted Answer

German termination law is complex and employee-protective. Notice periods range from 4 weeks to 7 months depending on tenure. Most terminations require valid cause and proper documentation. We guide you through the process, prepare compliant termination letters, calculate final payments, and manage the exit process. For terminations without cause (mutual agreement), we help negotiate separation packages within German legal norms.

Question 9

Can I bring my own candidate?

Accepted Answer

Absolutely. Many clients have already identified someone through their network, referrals, or their own recruiting. In this case, you skip the recruiting fee entirely and only pay the €599/month EOR fee. We handle employment contracts, onboarding, and compliance for candidates you source yourself.

Question 10

What statutory benefits do employees receive?

Accepted Answer

All employees receive legally mandated benefits: Health Insurance (public health coverage with private option available), Pension (contributions to state pension system), Unemployment Insurance (protection if employment ends), Paid Vacation (minimum 20-25 days depending on country), Sick Leave (full pay continuation, 6 weeks in Germany then reduced), and Parental Leave (extensive protections in all countries). These are included in your employer contributions.

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