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Workation

Workation describes combining work and holiday, usually abroad. There is no legal entitlement; it rests on an agreement. Key topics are social insurance (A1 certificate within the EU/EEA), tax and the 183-day rule including the risk of a taxable permanent establishment (Betriebsstätte), residence and work permits outside the EU, the applicable labour law with the ArbZG and occupational safety, and data protection. A clear policy and a limit on duration are advisable.

Jonas Stoffel
General Counsel

At a glance

  • No statutory right: a workation requires an explicit agreement
  • Social insurance (Sozialversicherung): within the EU/EEA an A1 certificate (A1-Bescheinigung) is usually required to prove continued membership of the German system (EU coordination, SGB IV)
  • Tax: the 183-day rule and any double taxation treaties must be checked; there is a risk of a taxable permanent establishment (Betriebsstätte) of the employer
  • Outside the EU, residence and work permits must also be clarified
  • Labour law: the applicable law, the Working Hours Act (Arbeitszeitgesetz, ArbZG) and occupational safety still apply, as does data protection
  • A clear policy and a limit on duration are advisable

What employers should watch

  • Social insurance: apply for the A1-Bescheinigung before departure (EU/EEA); outside the EU, separate rules or social security treaties govern
  • Tax: 183-day rule and permanent-establishment risk; regular decision-making or contract-signing abroad can create a Betriebsstätte
  • Residence: check visa or work permit outside the EU
  • Working time and safety: ArbZG and duty-of-care obligations continue; manage time zones and availability
  • Data protection: secure access to personal data from abroad

FAQ

Is there a right to a workation?

No. A workation is a voluntary offering based on agreement. Employers can set the conditions, eligible countries and duration in a policy.

What is the A1-Bescheinigung about?

Within the EU and EEA, EU law coordinates which social insurance system applies. The A1 certificate proves that a person remains subject to the German system. It should be applied for before the workation begins.

What does the 183-day rule say?

Broadly, a stay abroad of fewer than 183 days often keeps taxation in Germany. The rule applies only under further conditions and is shaped by double taxation treaties; it does not replace a case-by-case assessment.

What is the permanent-establishment risk?

If a person regularly exercises decision-making authority abroad or concludes contracts there on behalf of the company, the local tax authority may assume a taxable Betriebsstätte of the employer, even if the person stays below the 183-day threshold.

Last updated: August 2026

This article provides general information and is not a substitute for legal advice in individual cases.

Written By

Jonas Stoffel

Jonas is the General Counsel at Leapsome advising the internal team on all legal matters including Employment. On this blog, he is frequently writing about German Employment law and how HR Teams can use Leapsome to support Compliance. ‍