Freelancers in Medium-Sized Companies: Why Bogus Self-Employment Deters Companies, Markt und Mittelstand
2026年09月15日Partner Philipp Schäuble was quoted by Markt und Mittelstand about the legal uncertainty German companies face when engaging freelancers and the risk that an independent contractor may later be classified as an employee for social security purposes. Philipp noted that classification depends on the actual working relationship rather than the contractual structure, with factors including the individual’s level of direction, integration into the client’s organization, use of its resources, and entrepreneurial risk.
“The legal framework only keeps pace with this reality to a limited extent. Therefore, in practice, the rule is often: When in doubt, employee status is more likely to be assumed,” Philipp said, noting that this uncertainty can make companies more cautious about engaging freelancers.