Freelancer

As a freelancer or freelance ( in Austria freelance staff, in some industries (English) Freelancer ) is called a self-employed service or work contract for a company orders usually performs in person due to, without being incorporated into the company. Since the consultant is not an employee, the provisions of the labor laws do not apply to him. Is the consultant but a so-called workers like person, shall be entitled, in part, the protection of labor law. A freelancer does not exercise any social security contributions.

Distinction between the terms

Synonymous with the "free" or " freelance " employees is also the term " freelancer " or "Fee force " used. Conventionally, it is common, especially in the professions of gastronomy, the transport industry, advertising and media in the broadest sense, especially in the artistic and cultural fields, but also increasingly in technical professions. Freelancers who work together in virtual teams, also called " e- Lancer" (from English electronic ). The English term was coined by Sir Walter Scott (1771-1832) coined the (English lance, to German, lance ') used it in his novel Ivanhoe as the name of medieval mercenaries.

" Freelancer " is not synonymous with " freelancers ". The term " Freelancer " refers only to the type of employment (usually as opposed to employees)., But says nothing about the profession The term " freelancer " refers to members on the other hand always quite certain professions, namely the free professions ( architects, doctors, lawyers, accountants, etc.), it says nothing about the nature of the employment relationship; a freelancer can also be bound by instructions workers.

Function

Freelancers are often highly qualified and dedicated to specific tasks (for example, as a programmer, journalists, editors, museum curators, musicians, lecturers, interpreters and translators). Characteristics of a freelancer is his personal independence. The freelancer is directly subjected to the instructions of the customer in the design of its working conditions relatively free and formally neither in time, place or technical matters. It is usually not integrated into the organizational structure of the client.

Under German law, a freelancer, a worker is, if it is solely or mainly working for a client and thus is in a dependent relationship; as actors to social insurance ( KSK ) and to income tax can be.

Contract and payment

A freelancer can be employees, professionals or businesspeople. An employee of a business can be a freelancer for another company. There are no fixed working hours and no legal protection in case of illness or vacation. In general, however, either in terms of time to working hours or in terms of the deliverable is contractually agreed. These contracts are usually temporary.

In contrast to workers where the employer still bears the non-wage costs in addition to the salary the employee receives free in Germany only a contractually agreed remuneration ( called depending upon the area of ​​Professional Fees or Gage). From this charge he has to pay all his professional activity related costs ( operating expenses).

Freelancers can be paid by the hour or a flat rate for the completion of an assignment. The former is usually governed by an honorary or service contract, the latter. Due to a work contract

Pros and Cons

For freelancers

Working as a freelancer has the advantage of not being bound by instructions like an employee. Thus, the work can be divided freely. Depending on the technical possibilities of work can be partly carried from the apartment or at any location.

The is the disadvantage of the strong dependence on market activity and the customer, but this is considered by some people as an opportunity for development. When the credit it can be a limitation when no steady income can be demonstrated. The freelancer shall bear the costs of his office and office equipment as well as insurance for professional liability, sickness and pensions fully itself

Since freelancers are not employees, they also have the rights of an employee, especially not entitled to paid leave ( except for employee- related persons) and to continued pay in case of illness.

Time management plays a major role. They range from freelancers, who can afford a much shorter hours than the average worker and lots of free time, to those who offer depending on the personality and market conditions and their labor around the clock, seven days a week.

For the client

Freelancers are often employed when staff shortages occur, but permanent employees would not be profitable because of the high fixed costs. Freelancers are flexible. You have no notice periods, as they are usually contracted only for a specific job or project.

Through the use of freelancers knowledge of permanent employees can be brought up to date and the company can participate in the experience of other companies.

The disadvantage is that freelancers are not constantly available. Many smaller tasks in everyday operation that would otherwise be transferred to an employee, you can hardly be done by freelancers, because it would be too time-consuming and expensive, but specially to commission a.

Another drawback is the sometimes lack of familiarity with the company. Thus, the freelancers need to learn only in the company or in a particular project until they can bring the full power in the region. Free staff sometimes do not identify the same extent with the company as permanent employees.

False self -employed, "fixed -free "

When an employee who is called a " freelancer ", according to the overall appearance but dependent instructions and how an employee is integrated into the operation, an employment relationship is present ( false self ).

Freelancers who are employed continuously be colloquially referred to as " fixed -free ".

VAT Treatment

For the tax depends on whether the consultant is an employee or contractor. This is the Income Tax Act 15 also for the wage tax (employee ) and the income tax by the Income Tax Act § 18 and §. Workers, who can be subject to instructions and has to make his work according to foreign standards. This corresponds to most of the fixed payment after hours etc. For calculations of the employee, the employer can not deduct, but the employee owes the stated in an invoice VAT. The employer is also not in good faith because he knows the working conditions on site and the transfer subjection of the worker.

Social Security Legal Issues

The classification in the social security law may differ from the tax classification. For workers, the employer may have to pay extra social security contributions in arrears alone. It is therefore worth the proof provisions and, where appropriate, a so-called status determination whether an instruction -bound employment or self-employment without integration into the foreign operation is present.