Self-Employed
- Own Bosses
Self-employed people do not receive any instructions and decide for themselves how to carry their work out. - Compensation
They are paid for a specific project, not for their working hours. They negotiate the price with the client. Invoices and Profit
Self-employed people write invoices. They only know their profit after the following deductions have been made:- Income tax
- Sales and trade tax
- Health, pension and accident insurance
- Contributions to the employers' liability insurance association
If an order is not paid, self-employed persons bear the losses.
- Liability
Self-employed persons or their company are liable for faulty work. This liability can result in high costs years later. - No Additional Benefits
Self-employed persons do not receive sick pay or holiday pay from their employer. They decide for themselves when to take time off. - Operating Costs
- Self-employed persons maintain their own business premises (e.g. office or materials warehouse).
- They usually buy their own work materials and tools.
- They also are responsible for transportation.
Employees
- Employer
Employees have an employer who gives them instructions and determines what is to be done when and where. - Compensation
- Employees receive a fixed hourly wage.
- Minimum wages apply in some sectors (e.g. building cleaning, construction, care, temporary work). You can find out more here.
- Payment of Wages
- Employees are paid monthly or weekly and receive a payslip.
- The employer takes care of paying taxes as well as health and social security contributions.
- Employees are entitled to their wages, even if the employer makes a loss.
- Liability
Employees receive their wages even if they work incorrectly - unless the damage was caused by gross negligence or intent. - Additional Benefits
Employees are entitled to- Continued payment of wages in the event of illness (Find out more here.)
- Statutory holidays and holiday pay (by agreement with the employer)
- Work Materials
- Employees do not have to worry about work materials, tools or transport - the employer takes care of this.
Frequent Topics and Problems
Here you will find important information about your rights at work
Labour Law Advice - Germany-Wide, free of Charge and Anonymous
We can provide you with information and advice on labour law issues in your first language.
Important Addresses in other Countries
We also work together with our partner network abroad and can advise you.
