German law stipulates in the German Commercial Code (HGB) that an independent contractor has the particularity of being able to freely determine his performance and working hours. In contrast, an employee is a person who is not authorized to determine his or her work performance without instructions from the client or employer and who is related to certain hours of work. According to the Law on Protection against Dismissal, the dismissal of the employment relationship by the employer is legally effective only if it is reasonably justified. In principle, dismissal is only justified if it is based on personal reasons of reference (e.g. B, impairments, prolonged or frequent illnesses) or on the employee`s behaviour (breach of contract) or if there are compelling operational reasons that prevent the employee from continuing to work in the company. However, given that these criteria are quite vague, particularly with respect to flexible salary accounts and highly specified jobs, and that there are no other legal regulations, the Federal Labour Court distinguishes between a “dependent” employee and an independent contractor based on the degree of personal dependence. The more the client can determine the contractor`s performance, the more likely it is that the contractor will be an employee. There are two types of leases: a permanent lease or a fixed-term lease, also known as a temporary lease. A standard lease can be downloaded or purchased at most paper mills. A permanent contract is valid for an indefinite period. It usually includes a six-month trial period, after which your contract can only be terminated if you terminate or if the employer finds legal reasons to fire you (there are strict guidelines that govern this). As soon as you have found a room, apartment or house in Germany, you must first register your address with your citizens` office.
Until 2015, you could only do this with your signed lease. However, after a change in the law, you will need to present a separate document called owner confirmation in order to register. A fixed-term contract sets a date for moving in and out. It is not necessarily renewed after it expires. You will often meet them in student dormitories, where a room is only rented for the duration of the academic year or semester. In principle, the landlord is obliged to grant his employees (temporary workers) the same basic conditions of employment as apply to comparable permanent employees in the tenant`s home. This basic principle of German and EU DER LEGISLATION can be derogated from if the owner applies a collective agreement for his employees. In the vast majority of cases, such collective agreements apply. In Germany, there are two types of leases: fixed-term and indefinite. On the other hand, independent contractors generally do not benefit from paid leave. This is quite natural, since independent contractors, by definition, do not have specific working time and can therefore take days off at their own discretion. However, as a rule, they do not receive compensation for this free time, since they are only paid for the services actually provided.
The distinction between hiring employees and hiring a contractor is currently a very hot topic in Germany, and often customers are not aware of this problem. However, the risks are great, as negligent customers can end up employing regular employees they never wanted on their payroll. Your employment contract will describe in detail various aspects of your employment. Check it carefully to make sure there are no surprises. The most common elements are: finally, the legitimate interests of the workers are represented by a works council which is not responsible for the interests of independent contractors because they are not part of the workforce in the strict sense. In Germany, there are different types of employment contracts. Open-ended employment contracts are by far the most common. By law, an employee is entitled to certain benefits, each of which represents a mandatory minimum level. Thus, employers can grant more, but never less than what is required by law. An independent contractor, on the other hand, is not entitled to such services under statutory law. If an entrepreneur is granted these special benefits by his principal, it may actually involve a disguised job. These special benefits include: The difference in terms of termination of an independent contractor and an employee is huge.
While an employee can usually only be fired for a valid reason, an independent contractor can be fired without giving reasons, subject to a contractual notice period. This agreement is a form of employment contract used to engage a person or company with a specific and defined task for the employer and includes details such as the type of work, the duration of employment, the rate of pay and any confidential obligations that may exist. This agreement can also be adapted for contractors, consultants or freelancers. The landlord can only terminate a lease in the following circumstances: the deposit tends to be high; Landlords have the legal right to demand up to three months` rent in advance when signing the contract. This can be paid in three monthly installments, the first at the beginning of the rental and the second and third in the following months. Both parties can agree on how to pay the deposit. The most common way is to use a cash guarantee agreement, where the tenant transfers the sum to the landlord or pays it in cash. It is also possible to involve a third party, such as .
B a bank, as an intermediary. Tenants are not obliged to pay the amount in cash or make a transfer to a private bank account. Instead, they may require that the deposit be paid into an insolvency-proof account (a bank account separate from the owner`s assets) to protect the deposit of the owner`s creditors. For independent contractors, there are practically no binding rules for the terms of their contract. Although they are of different durations, leases in Germany usually follow a standard form that is the same for all different forms of housing. This means that they often contain provisions that do not necessarily apply to your specific situation. Before signing, you should read your contract carefully to make sure you understand all the terms. Employment relationships and relationships with independent contractors may be terminated by the party concerned for a valid reason with immediate effect in the event of a serious breach of contract.
The distinction between an employee and an independent contractor has several consequences for the parties involved. Especially with regard to social security law and tax treatment, there are considerable differences between an employee and an independent contractor. By signing a service contract, a freelancer makes his services available to the client for a fee. The contract usually contains all the specific obligations, the duration of the agreement and the conditions for terminating the contract. The decision as to whether a contractor should be qualified as an employee or as an independent contractor depends on a holistic view of these criteria. Labour courts tend to focus their deliberations on the degree of personal dependence, while social security institutions are more dependent on the economic dependence of an entrepreneur. Mini-jobs are a form of marginal employment in Germany. A mini-job describes an employment contract in which the employee does not earn more than 450 euros per month (mini-jobs of 450 euros) or works less than three months or 70 days a year (short-term mini-jobs). Mini-jobs can be accepted alongside your main job in addition to your salary or as your main form of income. Finally, it should be noted that the way in which the parties determine their contractual relationship is irrelevant. In particular, it is not important to know how the parties have structured their contractual relationship in the contractual documents, but how the contractual relationship is exercised in day-to-day business. Thus, even if both parties are convinced that their contractual relationship is a service contract, it can still be evaluated by the German courts or authorities as an employment relationship and vice versa.
An employment contract differs from a service contract mainly in that it relates to a specific job and not a period of time. The freelancer commits to making or repairing something for a one-time fee. The service is usually provided only once. With this type of contract, you are employed by the recruitment agency (personnel agency) and not directly by the employer. The agency is therefore responsible for paying your salary. Fixed-term contracts of this type can only be valid for a maximum period of 18 months and you are entitled to the same remuneration and benefits as permanent employees of the client company. The Continuing Remuneration Act does not apply to independent contractors. With regard to § 616 BGB, however, an independent contractor may claim damages if he is unable to provide his services for personal reasons, e.B. .