Blog post: What are the up- and downsides of ANobAG?

Advantages ANobAG

  • Natural legal relationship between parties remains intact

The great advantage of the ANobAG model is that the employment relationship remains with the employer abroad. It is therefore the natural legal relationship, as the de facto employer also remains the contractual employer. This is important from many points of view, but especially in terms of legal certainty between the two contracting parties.

  • No effort for the employer (no payroll necessary)

Moreover, it is as easy for the employer to handle as with a contractor. Namely, there is no need for payroll work, as this burden is transferred to the employee.

  • Lower costs

In addition, the cost of running an ANobAG model is lower than a payroll company because there is no need for another party between the employer and employee.

 

Disadvantages ANobAG

  • Difficult salary negotiation

However, the ANobAG model is not without its drawbacks. When negotiating the salary, it is necessary to make sure that the employer and the employee are talking about the same thing. Does the transferred salary represent the gross salary or should it cover all costs, i.e. gross salary + employer contributions? What is the employee’s take-home salary in each case? This problem can be easily solved with the appropriate support.

  • International taxation for stays abroad

There are two other aspects that should not be ignored. If the employee performs part of his work while physically staying in the country of the employer, these working days could be taxed in the respective country. Therefore, in case of regular work with stay in the country of the employer, another solution should be used – we will advise you on this without any obligation.