How Zenjob Scaled Legal from 10 to 300 Employees
When Zenjob started, they had 10 employees and a vision to transform how companies find flexible workers. Today, they’re Germany’s leading digital staffing platform with over 300 employees. We’ve been their legal partner through every stage of that journey.
The Challenge: Scaling Without Breaking
Growing from 10 to 300 employees in Germany isn’t just about hiring. It’s about navigating a maze of employment law thresholds that trigger new obligations, new risks, and new compliance requirements at every stage.
At 10 employees, you’re exempt from most regulations. At 20, the Kündigungsschutzgesetz kicks in. At 50, you need a Betriebsrat if employees request one. At 200, new co-determination rules apply. Each threshold brings legal complexity that can slow down a fast-moving company, or create liability that surfaces years later.
Zenjob needed a legal partner who understood these thresholds intimately and could prepare them for each transition before it happened, not after.
Our Approach: Proactive, Not Reactive
We didn’t wait for Zenjob to hit a threshold and call us in a panic. We built a legal roadmap that anticipated each milestone months in advance.
Employment Infrastructure: Before they crossed the 20-employee mark, we restructured their employment contracts and termination procedures. When they eventually needed to let someone go, the documentation was already in place.
Works Council Readiness: As they approached 50 employees, we prepared works council election procedures and trained their HR team on co-determination rights. When employees eventually requested a Betriebsrat, Zenjob was ready.
Management Liability: With growth came management complexity. We implemented D&O structures and management agreements that protected founders as the company professionalized.
Funding Rounds: Legal as a Competitive Advantage
Zenjob closed multiple funding rounds during our partnership. Each round meant investor due diligence, and each due diligence meant scrutiny of their legal infrastructure.
Because we’d been building that infrastructure proactively, Zenjob’s data rooms were clean. Cap tables were organized. Employment contracts were standardized. IP assignments were documented. Investor counsel found what they expected to find, and deals closed on schedule.
“Other startups scramble to clean up their legal house before a funding round. Zenjob’s house was already clean because Compound had been maintaining it all along.”
The Platform Challenge: Marketplace Compliance
Zenjob operates a staffing marketplace, which creates unique legal challenges. They’re not just an employer. They’re a platform connecting workers with businesses.
We helped them navigate:
- Worker Classification: Ensuring their flexible workers were properly classified under German law
- Platform Liability: Structuring terms that appropriately allocated risk between Zenjob, workers, and client companies
- Data Protection: Building GDPR-compliant systems for handling worker and client data at scale
Results
After years of partnership, Zenjob has:
- Scaled from 10 to 300+ employees without a single employment law dispute
- Closed multiple funding rounds with clean due diligence
- Built a compliant marketplace operating across Germany
- Established employment infrastructure that will support their next phase of growth
Why It Worked
Zenjob’s success isn’t just about having good lawyers. It’s about having lawyers who understand how startups grow and what legal infrastructure they need at each stage.
Traditional law firms bill for problems. We build systems that prevent them. That’s the difference between legal as a cost center and legal as a competitive advantage.
