Requirements for pay in lieu of leave
Your workers can apply for pay in lieu of leave once they have no longer been working on construction sites in Germany for at least 3 months.
If any of your workers work on another construction site in Germany before submitting such an application, they can take their paid leave with their new employer.
Social security and taxes
As pay in lieu of leave is subject to social security contributions, we deduct a fixed percentage from each payment and pass on the withheld amount to you. You must pay this money to the competent social security authorities in your home country.
For workers, who are subject to social security contributions in Poland, we transfer the money directly to the competent social security authority (ZUS).
Furthermore, we are legally obliged to pay a lump sum for income tax (20 %) and solidarity surcharge (1.1 %) to the tax office in Wiesbaden („Finanzamt Wiesbaden“).
Requirements for compensation
Your workers can take their remaining leave by the end of the following year.
Example: Your workers can take their remaining paid leave entitlement from 2021 until 31st December 2022.
If their entitlements are forfeited, your workers can apply with us to disburse a compensation. They must submit their application within a year.
Example: If any of your workers have forfeited their remaining paid leave entitlements from 2020, they can submit an application for compensation to us from 1st January 2022 to 31st December 2022.
Taxes
We are also legally obliged to pay a lump sum for income tax (20 %) and solidarity surcharge (1.1 %) to the tax office in Wiesbaden („Finanzamt Wiesbaden“).
The compensation is not subject to social security contributions.