News - Germany

Germany - April 2011

Agency workers providing services to more than one end-user client to benefit from additional subsistence deductions

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.

Commentary

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.

Resources

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