FALSE SELF-EMPLOYMENT
Scheinselbstständigkeit – false or bogus self-employment – exists when someone presents as self-employed but actually works like an employee. What counts isn’t what the contract says, but how the working relationship looks in practice.
Models are usually self-employed: they take on individual jobs for different clients and bear their own business risk. Signs of false self-employment, on the other hand, can include:
- You work permanently and almost exclusively for a single client.
- You’re bound to fixed working hours and instructions, much like an employee.
- You’re firmly integrated into the company’s operations, for example as a permanent in-house fit model.
- You bear no business risk of your own and practically can’t turn down jobs.
If false self-employment is established, the work is treated as employment. The client then has to pay social security contributions retroactively, in some cases for several years. If you want clarity, you can apply for a status determination procedure (Statusfeststellungsverfahren) with the German Pension Insurance (Deutsche Rentenversicherung). If you’re unsure, it’s worth getting advice from a tax advisor or lawyer.
As a model, you usually work on a self-employed basis for changing clients. The topic can become relevant, though, if you work almost only for one client over a long period, for example as a regular showroom or fitting model with fixed hours and instructions, because then the question arises whether you still count as self-employed for social insurance purposes. As an influencer, this topic can become relevant if you work almost exclusively for one brand over a longer period, for example as a brand ambassador with fixed working hours and rules about where and how you work. The more closely you are integrated into a company's processes, the more likely questions about your status become. In both cases, have such contracts reviewed before you sign if in doubt.
See also: Fitting.
