Quick Hits
- Under Section 45c of the Residence Act, companies with operations in Germany must provide written information to new employees no later than their first day of work and include reference to the free labor and social law advice service “Faire Integration” plus contact details of the nearest advice center.
- The new requirement, which took effect on January 1, 2026, applies only to new hires from third countries whose habitual residence/domicile is outside the EU, the EEA, and Switzerland at the time of conclusion of the contract.
The aim of the regulation—Section 45c of the Residence Act—is to create transparency and protect nationals of third-countries (i.e., citizens from outside the EU, the EEA, and Switzerland) without burdening companies with excessive bureaucracy. This article explains who is affected by the obligation, what exactly must be disclosed, and the consequences of noncompliance.
Background
The new Section 45c of the Residence Act introduces a comprehensive duty to provide information, which obliges companies to inform certain newly hired third-country nationals (i.e., citizens from outside the EU, the EEA, and Switzerland) about the free “Fair Integration” advisory service. “Faire Integration” (Fair Integration) advisory centers can be found in all federal states and are available here.
This was triggered by the nationwide launch of a consolidated, multilingual advisory network that addresses labor and social law issues in an accessible manner. The legislature is pursuing two goals with this: protecting third-country nationals and, at the same time, ensuring fair competition for domestic companies.
In terms of content, Section 45c of the Residence Act requires written information to be provided no later than the day on which work commences. This must include a reference for the free advice service and the contact details of the nearest advice center at the place of work; a standardized information sheet is recommended, which is handed out together with the employment contract and confirmed by signature. The obligation only applies to employees whose habitual residence or domicile is in a third country at the time of conclusion of the contract; it does not apply to employees who already started work before January 1, 2026, or who already have their habitual residence in Germany. It also does not apply if the recruitment is carried out through an employment agency with the meaning of Section 299 No. 10 of the Social Code Book III (Sozialgesetzbuch (SGB III)). In practical terms, the regulation is particularly relevant for employers with international recruiting activities—for example, when recruiting skilled workers from third countries, regardless of industry or company size.
What Happens in Case of Noncompliance?
The law currently does not provide for a fine in the event of noncompliance with the information obligation. Nevertheless, missing or delayed information can trigger legal and practical risks. These may also include problems with evidence in labor law disputes when it comes to transparency obligations or the content of information provided.
Ogletree Deakins’ Berlin and Munich offices and Cross-Border Practice Group will continue to monitor developments and will post updates on the Cross-Border and Germany blogs as additional information becomes available.
Dr. Ulrike Conradi is managing partner in Ogletree Deakins’ Berlin office.
Pauline von Stechow, a law clerk in Ogletree Deakins’ Berlin office, contributed to this article.
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