Hello,

I have been living in Germany since last 6 years. Recently my wife completed 3 years of her stay in Germany after which she was given a work permit to so that she can find a job.

She could find a Teaching job. This is more like a 'forced freelancer'. I am saying this because, her intention was to find a full time job. But the offer she received has no commitment on either side (Employee and Employer) in terms of terminating contract(notice period is just 24 hours), health insurance, pension contribution etc. They pay on an hourly basis and since its teaching job, it gives more flexibility in terms of choosing number of hours and the time of work based on mutual convenience. The employer told my wife that the earnings will be calculated based on number of hours she spends in teaching and accordingly the amount will be deposited to her Bank account.

Since this is not similar to a job contract, we are confused as to how to handle.
1. Health Insurance
2. Taxes and pension contribution
3. Are there any thing that my wife is obliged to do legally.
4. Is my wife expected to register as a freelancer? If yes, where to find details?
5. Does she need to keep track on her proffessional expenses for future references?

Please note that I hold a full time job and currently i am on tax clas 3 and my health insurance covers the entire family.

I am asking this because, we never had any intention to be an independed freelancer. However the situation has put my wife to be an independent consultant and we are not sure as to what is expected from us legally.

any help will be great.

Regards,
B

Hi,

you should read this...

http://www.trust7.com/en/foren/start_up/false_or_pseudo_self-employment

Good luck
Detlef

To assess if your wife is an employee the factual situation is crucial not the terms used in the contract. For this reason, she could also enjoy dismissal protection if the "facts on the ground" show that she is actually an employee.

With regard to the social security obligations, there is a special procedure to ascertain whether employee status or not is given (Deutsche Rentenversicherung Bund Clearingstelle für sozialversicherungsrechtliche Statusfragen,10704 Berlin,)

http://www.deutsche-rentenversicherung.de/nn_7112/SharedDocs/de/Inhalt/04__Formulare__Publikationen/01__formulare/01__versicherung/V0027.html

Servicetelefon 0800 10 00 480 70

It is unclear whether she is a consultant or a teacher.

Do note, that a self employed teacher with no employees working for him is generally subject to the pension fund (§ 2 Nr. 1 SGB VI). Being self-employed, one has to pay the contributions oneself.

Even in the absence of employee status, one could still be in an employee-like status (arbeitnehmerähnlich). They are characterized as not having employees themselves and having predominantly only one contractor (§ 2 Nr. 9 SGB VI). Being only employee-like one has to pay the contributions oneself.

http://bundesrecht.juris.de/sgb_6/__2.html

It is mostly the employer that gets into trouble big time should he have failed to observe his legal obligations that arise with employee status.

There are also income tax implications between self employed persons and employees as they fall into two distinct genres of income.

In addition,as a genuine freelancer one has to inform the local trade department (Gewerbeamt) of one´s economic activity. In principle, a freelancer is subject to trade income tax (Gewerbesteuer) with certain professions not falling into this category. In contrast to an employee, a freelancer usually writes invoices to his or her contractor for the delivered services. Issues of value added tax arise. Below a certain income cap one can apply for an exemption at the tax office in order not to be subjected to VAT.


Rechtsanwalt_Jain@yahoo.de