Nahaufnahme: Hände eines Bauarbeiters beim Messen auf frischem Beton

Self-Employed - Just for Show?

Do you know your rights? Check your employment relationship.

Self-Employed

  • Own Bosses
    Self-employed people do not receive any instructions and decide for themselves how to carry their work out.
  • Compensation
    They are paid for a specific project, not for their working hours. They negotiate the price with the client.
  • Invoices and Profit
    Self-employed people write invoices. They only know their profit after the following deductions have been made:

    • Income tax
    • Sales and trade tax
    • Health, pension and accident insurance
    • Contributions to the employers' liability insurance association

    If an order is not paid, self-employed persons bear the losses.

  • Liability
    Self-employed persons or their company are liable for faulty work. This liability can result in high costs years later.
  • No Additional Benefits
    Self-employed persons do not receive sick pay or holiday pay from their employer. They decide for themselves when to take time off.
  • Operating Costs
    • Self-employed persons maintain their own business premises (e.g. office or materials warehouse).
    • They usually buy their own work materials and tools.
    • They also are responsible for transportation. 

Employees

  • Employer
    Employees have an employer who gives them instructions and determines what is to be done when and where.
  • Compensation
    • Employees receive a fixed hourly wage.
    • Minimum wages apply in some sectors (e.g. building cleaning, construction, care, temporary work). You can find out more here.
  • Payment of Wages
    • Employees are paid monthly or weekly and receive a payslip.
    • The employer takes care of paying taxes as well as health and social security contributions.
    • Employees are entitled to their wages, even if the employer makes a loss.
  • Liability
    Employees receive their wages even if they work incorrectly - unless the damage was caused by gross negligence or intent.
  • Additional Benefits
    Employees are entitled to
    • Continued payment of wages in the event of illness (Find out more here.)
    • Statutory holidays and holiday pay (by agreement with the employer)
  • Work Materials
    • Employees do not have to worry about work materials, tools or transport - the employer takes care of this.

Files for Download:

Self-employed - only on paper?

Broschüre / Flyer

07/17/2019

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