Independent contractor

Crowdworkers are not employees under German Labour Law

Crowdworkers are not considered employees under German labour law under a ruling by the Higher Regional Labour Court of Munich on 4 December 2019 (docket number: 8 Sa 146/19). What are Crowdworkers? Crowdworkers are persons to whom so-called microjobs are offered via an Internet platform which they then carry out independently, if they accept the offers. According to the “Crowdworking Monitor” of the Federal Ministry of Labour and Social Affairs (BMAS) from 2018, around 4.8 percent of the eligible voters in Germany work as crowdworkers. The case The defendant operates an Internet platform and, among other things, carries out checks …

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Works Council’s right to know about work accidents also extends to external staff

According to a judgment by the Federal Labour Court, the works council may request information about work accidents suffered by individuals who are employed by an external party, if these works accidents were suffered in connection with the operational infrastructure (judgment dated 12 March 2019, docket number 1 ABR 48/17). The company, a delivery service provider, used both its own staff as well as contractors to provide these services. When two contractors slipped and thus suffered injuries at work, the local works council requested copies of the relevant accident reports. In addition, it requested to be informed about work accidents …

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Crowd Working and the Transparent and Predictable Working Conditions Directive

On 16 April the European Parliament voted to approve the Transparent and Predictable Working Conditions Directive, which is aimed at strengthening the rights of workers and improving working conditions by promoting more transparent and predictable employment whilst ensuring labour market adaptability. The Directive applies in particular to platform workers (aka crowd workers), but also covers workers including those in casual or short-term employment, on-demand workers, intermittent workers, and voucher-based workers. Genuinely self-employed persons should not fall within scope, but the Directive states that the determination of the existence of an employment relationship should be guided by facts relating to the …

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Circus artists: Employees or independent contractors?

The Federal Labour Court (Bundesarbeitsgericht, BAG) ruled on 11 August 2015 (docket number 9 AZR 98/14) that where an activity agreed by contract may typically be performed in an employment relationship as well as by an independent contractor, the decision of the parties regarding the type of contract has to be considered as part of the necessary overall balance when assessing the employment status. Individual aspects of the performance of the contract may only change its legal character contrary to the wording of the contract, if they are representative of a different employment status, rather than being an exception to the agreed working relationship. …

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Independent contractor or employee – That is the question.

Time and again the question arises whether an individual is employed as an independent contractor or as an employee. Under German law there is a thin line between an employee, ie someone who performs services under an employment contract, and an independent contractor, ie someone who performs services on an independent basis. The distinction is even more difficult since is not made on the basis of the underlying contract alone, but on the way the contract is played out. If the contract establishes an independent contractor relationship but the way the contract is executed establishes an employment relationship, the person …

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