Working Life > Staff > Freelancer

Freelancer

Definition, Explanation

Besides employing workers, companies also like to hire temporary workers or freelancers (freie Mitarbeiter). Temporary workers are rented from a temporary employment agency which is employing them. Usually, this is for clearly defined jobs and occupations as controlling, call-centre work, security guards and the like.

Freelancers, in contrast

• are highly qualified or specialized
• work as self-employed. Accordingly, a freelancer is registered in the tax office as a liberal professional or tradesman
• are free in designing their own working conditions, that is being free in choices of working hours and place. They are not entitled to be provided a workplace within the company premises
• are not organizationally embedded in the company structure. Freelancers, also, are not subjects to directive authorities
• are remunerated by hour, based on a service contract, or by lump-sum, based on a contract of work and services. Freelancers do not receive any regular fixed monthly income
• are independent in client acquisition
• can work for several clients at a time
• are self-responsible for their social security and the taxing of their income. Freelancers are not obliged to be social-insured
• are hired on contracts that are usually defined for a certain period of time
• are not entitled to continued payment in case of sickness, to dismissal protection, to paid vacation etc.

Delineation from liberal professional (German: Freiberufler):

A freelancer’s employment relationship is natured fundamentally footloose. In distinction from employees, freelancers are not workers of the company who are subject to directive authority and obliged to be social-insured, but they are self-employed. In contrast, liberal professionalship is characterized by certain kinds of activities, and is associated with a distinct list of “freie Berufe” (liberal professions). However, even many liberal professionals work as freelancers, whereas someone working as a freelancer may be a tradesman, as well.

Contrary to what the definition of freelance work demands, freelancers’ real employment relationships are often very similar to those of regular employees. In such cases of false self-employment, the employer can be sued and be forced to employ the former freelancer as a fully secured, regular employee.

Tips, Checklist

• Make sure that you contract the employment relationship, including the components of:
  • Naming the service/work to be done
  • Agreement on remuneration, including side costs as are travelling costs, rental and material costs
  • Employment according to definition of a freelancer (freier Mitarbeiter)
  • Possibly non-compete agreement, providing for you not to compete with the client
  • Regulations of dismissal and cancelling
  • Secrecy
• If you are the freelancer, also include a non-compete agreement interdicting your employer to obtain the same service from a third party
• Be sure the employment relationship does not turn into false self-employment. Try to always be working for at least 2 different clients
• Occasionally, jobs are offered for freelancers which are actually demand regular employment. If you are suspecting so, you should consider the possibility of just applying as though for a regular employment, and first mention your freelance offer in the job interview, in order to get the job

Information Sources

• Muster für Freier-Mitarbeiter-Vertrag
• Mustervertrag: Freier Mitarbeitervertrag
• Mustervertrag: Freier Mtarbeitervertrag für Programmierer
• Kündigung freier Mitarbeiter (fristgemäß, Auftraggeber)

• more...

Literatures

• Interviewing and Salary Negotiation: For Job Hunters, Career Changers, Consultants and Freelancers by Kate Wendleton

Last update: 01/30/2012