Germany is one of the countries that place high demands on the provision of legal services. Anyone who wants to offer legal advice or legal representation in Germany must have a legal services license . With effect from January 1, 2025, the unauthorized provision of legal services will now be explicitly punished as an administrative offense (Section 20 of the Legal Services Act (RDG)). This raises the question, particularly for the global mobility industry and HR departments, of how this new regulation will affect advice in the area of immigration law. In this respect, so-called "relocation service providers" are a widespread business model that is regularly used, especially by companies without their own global mobility department.
The current situation in German immigration law
In view of the increasing shortage of skilled workers in Germany, companies, HR departments and global mobility teams are more dependent than ever on legally sound advice on immigration law. While numerous specialized lawyers have been covering this area professionally for years, a clear trend can be observed: More and more non-legal service providers are offering immigration advice and calling themselves "advisors" or "experts". They support companies and skilled workers with administrative procedures, obtaining visas and applying for residence permits, but without having an official license for these activities. The legal work of these companies, which do not have a legal services license, repeatedly leads to fatal consequences, for example when applications are rejected or even when criminal matters such as deportation proceedings arise.
When is immigration advice a legal service?
Many companies therefore ask themselves which services in the area of global mobility can be classified as legal advice. The definition in the RDG is clear: According to Section 2 Paragraph 1 RDG, a legal service is "any activity in specific third-party matters as soon as it requires a legal review of the individual case". This means:
Whenever a consultant assesses a client's individual nationality, employment situation, marital status or education to recommend an appropriate residence permit, this is a legal service.
As soon as a provider communicates with the authorities on behalf of a customer or submits applications on behalf of the customer, a legal service that requires a license is also provided.
The RDG is designed to protect people who seek legal advice. Only licensed lawyers are required to maintain professional liability insurance so that clients are protected in the event of incorrect advice. This is not the case for unauthorized advisors.
What are the consequences?
The effects of an unlicensed legal service in the global mobility sector affect both customers and unlicensed providers:
Fines for unauthorised legal services : From 1 January 2025, the Federal Office of Justice can impose fines of up to EUR 50,000 for violations.
Risk for employers : Companies that rely on unauthorized consultants run the risk that the service providers will abruptly cease their activities as soon as investigations are initiated.
Criminal law risks : According to Section 95 Paragraph 2 No. 2 of the Residence Act, providing incorrect information in the visa process is a criminal offense. In addition, new reporting obligations for employers were introduced in 2020 and 2023, which increase the liability risk for companies.
Invalid contracts : Contracts that violate the RDG are considered void under German law.
These measures are intended to ensure that consumers and businesses can rely on the qualifications and integrity of those who provide legal services.
Conclusion: Professionalization of immigration advice
With the new regulations, Germany is following the example of countries such as the USA, where high professional standards and clear responsibilities apply to legal service providers. Strengthening the integrity of the legal profession in the field of immigration law will help ensure that companies and professionals receive legally sound and professional advice in the future. Companies that rely on international professionals should ensure that they only work with licensed lawyers or authorized service providers in order to avoid legal risks and potential penalties. Working with immigration lawyers is therefore not only a compliance factor, but also ensures that the professionals are not liable based on their immigration status.
Comentarios