Agency workers providing services to more than one end-user client to benefit from additional subsistence deductions
January 4, 2011
The German Federal Finance Court has ruled that, typically, agency workers have no regular place of work in cases where the worker performs services for several different end-user clients of his employment agency employer.
The consequence of this decision is that such an agency worker may deduct subsistence costs at the published per diem rates for longer than the three month period allowed for employees with a regular place of work.
The decision does not clarify the position of an agency worker who only performs services for one end-user client of the agency. Currently under existing rules the deduction of costs for additional meals will not be possible if the performance for one client exceeds the time period of 3 months.
German Federal Finance Court: Decision dated 17 June 2010 (VI R 35/08)
For further information or to discuss the issues raised, please contact Joachim Menz on +49 89 24 22 300
CELIA Alliance members are identified here. Members of the CELIA Alliance are each independent law firms and do not practice law jointly with any other member of the CELIA Alliance. “CELIA Alliance” and “CELIA” are not trading names. For more information about the CELIA Alliance click here.
Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this newsletter. For further legal information click here.
If you would like to copy or otherwise reproduce this article then you may do so provided that: (1) any such copy or reproduction is for your own personal use or if it is made available to any third party it is done so on a free of charge basis; and (2) the article is reproduced in full together with the contact details, disclaimer and any logos as they appear on each article.