The Best Employer of Record in Germany: Top 8 Providers for 2025

This guide helps you select the best Employer of Record (EOR) provider in Germany, based on your specific needs. EORs are a strategic solution for companies with global growth objectives, enabling rapid and compliant market entry.

The EOR Provider Landscape

Since the coronavirus pandemic, the EOR industry has experienced significant growth, with numerous providers entering the market. The venture capital industry took notice, funding several providers, which in turn attracted even more players. Now, with numerous EOR providers available, selecting the best one for your business can be challenging.

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Mr. Stephan Dorn

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What Are the Differences?

There are several differences between EOR providers. Large providers often cover more than 180 countries, while smaller ones typically focus on a single country or region. Some brand themselves as software companies, emphasizing tech platforms, while others specialize in market entry or HR consulting. You’ll find well-established providers with years of operation alongside relatively new players in the market.

How to Select the Best EOR

There are many EOR providers with distinct philosophies—each with its own specific pros and cons. The “best” one depends on the particular needs of the client.

Hard Factors

When selecting an EOR provider, you can be guided by some hard factors, which should be non-negotiable:

  • Own legal entity: Many EOR providers work with “local in-country partners.” This means the EOR does not own a legal entity in a country and works with a local subcontractor. This approach is widely used and effective in certain countries, but not legal in Germany. The German employee leasing law prohibits so-called “chain leasing.”
  • Valid license: The provider must hold a valid AUG license from the Federal Ministry of Labor in Germany.
  • Compliance: The providers must adhere to the strict local AUG requirements. Be cautious of providers attempting to circumvent the law by using consulting agreements.
  • Local knowledge: Germany has stringent labor laws, and each mistake can be very costly and even result in direct employment between the client and the employee. It is essential to choose a provider with deep expertise to avoid these risks.

Soft Factors

If hard factors are fulfilled, you can focus on soft factors based on your specific needs:

  • Working style: How easily can you reach the potential provider?
  • Employee experience: How easy can the employee reach the provider? How easy is it to request leave, submit expenses, and so on?
  • Language: Does the provider speak English? Are bilingual documents available?
  • Platform: Do you need a self-service platform with AI features and automation?
  • Optional services: Can the provider offer recruitment, a company car, a notebook, etc.?
  • Visa support: Can the provider assist in getting a visa or work permit?

Our Ranking for the Best Employer of Record in Germany

Here’s our ranking of the top 8 EOR providers in Germany for 2025, evaluated based on compliance, local expertise, platform capabilities, and additional services.

1. FMC Group

FMC Group leads the pack with its people-first approach, prioritizing both client and employee experience to foster long-term success. Established in 1999, FMC Group brings over 25 years of experience supporting businesses in international expansion. FMC Group has strong expertise in the German market and offers a wide range of additional services, from recruitment to providing company cars for EOR employees, as well as supporting the process of obtaining a work permit. FMC Group’s lean processes enable competitive pricing, while its commitment to employee well-being ensures robust employee retention and satisfaction. The long-term mindset of FMC Group makes it an ideal partner for sustainable growth and confident market entry. Read more

2. Rippling

Rippling shines with integrated HR and IT automation, offering a comprehensive platform that manages everything from payroll to device provisioning. Its infrastructure supports companies ranging up to 2,000 employees, automating compliance, tax filing, and benefits administration. Rippling is especially well-suited for technology-minded organizations seeking scale and operational clarity.

3. Deel

Deel operates through its own legal entity in Germany, ensuring strong local compliance and support for large-scale operations across more than 150 countries. With advanced onboarding automation and seamless payroll integrations, Deel appeals to businesses focused on rapid, technology-driven workforce expansion. Its platform-first approach offers streamlined processes suitable for growing international teams.

4. Remote

Remote brings powerful automation and scalability to businesses expanding internationally. Covering more than 60 countries via its own legal entities, its platform simplifies payroll, tax, and compliance management. Remote is highly effective for companies that require large-scale hiring, efficient HR operations, and a unified self-service toolset.

5. Lano

Lano provides local compliance expertise combined with efficient, automation-first operations. Its platform is designed for large enterprises, supporting global payroll consolidation and transparent HR and financial reporting. This makes Lano an excellent choice for organizations seeking both reliability in the German market and scalable, data-driven operations.

6. Omnipresent

Omnipresent delivers EOR services through its extensive entity network, with a focus on process automation for payroll and documentation. Its centralized platform supports efficient, large-scale workforce management—ideal for fast-growing companies looking to expand across multiple regions with minimal administrative burden.

7. Velocity Global

Velocity Global is recognized for its extensive legal entity network and comprehensive compliance capabilities. Covering 185+ countries, it offers seamless onboarding, local payroll, and reliable payments. Organizations with global operations value Velocity Global’s mix of technical automation and legal reassurance, making it a strong partner for deploying their worldwide workforce.

8. Papaya Global

Papaya Global offers a comprehensive, unified platform that seamlessly integrates EOR services, contractor management, and global payroll. Its automation and analytics drive efficiency and transparency, enabling businesses to manage complex workforce structures effortlessly. Papaya Global excels at handling multiple entity types and compliance needs in a user-friendly, data-centric platform.

Summary

Choosing the right EOR in Germany is about balancing compliance, local expertise, and operational efficiency with the needs of your team—both in Germany and globally. Each of these providers brings unique strengths to the table, so consider your business goals, scale, and expectations for both client and employee experience when making your decision.

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