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ARTICLE · 20 MARCH 2020

Reversal Of An (Allegedly) Freelance Relationship

BAG [Bundesarbeitsgericht – German Federal Labor Court] of June 26, 2019 - 5 AZR 178/18

GermanyEmployment and HR

BAG [Bundesarbeitsgericht – German Federal Labor Court] of June 26, 2019 - 5 AZR 178/18

Should the employee status of an alleged freelancer be established retrospectively, the employer can reclaim the fees paid. Generally speaking, it can be assumed that the remuneration of a freelancer is higher than that of a dependent employee.

Facts of the case

The defendant was employed by the plaintiff as an IT employee without fixed hours on the basis of a service contract. For the "maintenance tasks", the parties agreed on a reaction time on working days of four hours and as remuneration "a fee of EUR 60.00 plus VAT at 16 % per hour incurred". After the termination of the contractual relationship, the Deutsche Rentenversicherung Bund [German Pension Insurance Association] determined, at the request of the defendant, that he was subject to compulsory insurance in all branches of the statutory social insurance during his entire work with the plaintiff. The plaintiff was

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