Freelance Or Contract Workers – Where Does The Border?
New judgment to the Landesarbeitsgericht ensures clarity as long as to principal and contractor agree, take over independent like to freelance work for changing companies. It comes to the dispute over the nature of the business relationship, but can cause serious consequences. On the safe side, it is therefore who informed prior to a contract for the legal framework of its activities as a freelancer. When freelancers and self-employed entrepreneurs provide services for third parties and those customers pay the self-employed for the work they have done, both are automatically in a legally binding contract. But where exactly? Here are the limits of fluent, explains Lutz Groot Bramel, Managing Director of the insurance broker specialised in freelance and self-employed entrepreneurs gb.online gmbh: A distinguishing criterion formulated aims of the Treaty.
A concrete success is sought, for example, the development and implementation of a Computer program and the contractor determines how he fulfills the contract, so it is a work contract. If the target is only the fulfillment of an activity at the or the provision of services to the customers, one speaks of a service contract.” Here, it is essential that the contractor owes not a concrete success, but only a particular activity the customer in a service contract. Quite different the situation is, if the Freelancer or his staff at the customer site will be active. Here, the suspicion of temporary work and thus a license contract is close quickly. Most important criterion for the detection of such license agreement is the question of whether the service provider in the customer operations is incorporated and whether he gets employment instructions directly from the customer. In this case, the presumption is close, that here is a self-employed as employees of the client company working without being hired there. The problem is, it don’t care about the courts as the contractual agreement is between two parties, but will be lived as the actual employment relationship “, explains Lutz Groot Bramel. The National Labor Court Baden-Wurttemberg has made a landmark judgment in August 2013 to this question which will be decisive in assessing similar contractual relationships between freelancers and their clients in the future. It is advisable therefore to undergo the scrutiny’s own working conditions and, where appropriate, with the principal to negotiate changes, in order to avoid the accusation of bogus contracts and of self-employment. The media spokesman of the Landesarbeitsgericht BW, Ulrich Hensinger answers questions about this ruling and its consequences, see.