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Contractor Agreement Deutschland

The more the client can determine the contractor`s work, the more likely the contractor is to be a worker. As a general rule, independent contractors do not participate in the German compulsory social security system. They have to organize their social security from their. B through private health insurance and private pension funds. As a result, they generally receive higher (gross) compensation than comparable employees. On the other hand, self-employed contractors generally do not receive such special allowances. Their earnings are generally higher than the average salary of a comparable worker and no additional benefits are granted. However, because workers are considered more vulnerable in the past, there are many specific legislation that protects workers` rights and does not apply to self-employed contractors. Many of these guarantees are a mandatory minimum and cannot be replaced by parties to an employment contract. However, the terms of employment contracts, including remuneration and benefits, are widespread and governed by collective agreements and not by legal provisions. The benefits of an independent contractor are generally subject to VAT (VAT). Some professions are excluded from taxation, such as certain occupational medical benefits.B.

In addition, an independent contractor, as a small contractor, is subject to such a VAT if the expected profit for the following year does not exceed EUR 50,000. The independent contractor is responsible for the transfer of the VAT incurred and his personal income tax. In general, contractors are responsible for carrying out and carrying out the work in accordance with the definition of the scope of work (i.e. technical descriptions and work plans), in accordance with the work plan and price agreed by the parties. On the other hand, it is the responsibility of employers to pay the agreed price in accordance with the payment plan (for example. B some milestones, as agreed by the parties). As a general rule, the termination rights of a contractor are excluded; However, both parties remain entitled to terminate the contract for as yet unexplained reasons (i.e., violation by the other party of an essential contractual obligation that would render the continuation of the contract unacceptable or unreasonable). As a result, construction contracts generally list the circumstances that allow the employer (and/or contractor) to terminate the contract for substantive reasons, such as the incumbent`s insolvency.B.

Extended force majeure events may also give the parties the right to terminate the contract. The differentiation between a worker and an independent contractor has several consequences for the parties concerned. In particular, with regard to social security law and tax treatment, there are considerable differences between a worker and an independent contractor. Given your commitment as a contractor or independent advisor to [the company) (the «company»), the undersigned (the «adviser») agrees: As a general rule, construction contract partners may assign specific risks to another party (especially in case of force majeure).

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