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In this issue…


Freelance? Self-Employed? Are You Certain?
New German Social Security and Labor Legislation Redefines Traditional Market Relationships

Michael Reiter, Senior Project Manager, Fry & Bonthrone Partnerschaft

German translators, technical authors, editors, programmers, consultants, and many others who thought they were self-employed may be in trouble, along with their clients. Amendments to the country's social security legislation, in force since January 1, 1999, mean that a good number are now considered to be "pseudo self-employed". The result: both they and their customers may be forced to pay contributions to the State-run health, invalidity and pension insurance programs - possibly even retroactively for several years. Additional legislation on casual working and foreign contractors - the implications of which are in many cases still unclear - also looks set to reduce flexibility on the German labor market still further. The language industry, with its peaks and valleys in demand and traditional heavy reliance on external suppliers, is one of the sectors most affected by the changes.


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