Risks that Threaten your Existence
There is no free choice as to whether someone is to be classified as an employee or a self-employed contractor. Consequently, it is unfortunately completely irrelevant what heading adorns a contract and what imaginative content apparently regulates the cooperation.
When determining or not determining employee status, (almost) exclusively the practice actually lived is decisive. Only almost, because clauses that contradict the practice do not improve the situation, but can significantly worsen it.
IT and Creative Industries Particularly Vulnerable
We can’t even hear the word “freelancer” anymore. In the IT and creative industries, the bad habit is rampant of employing every person who is not fixed in the office for eight hours a day as a freelancer on a contract basis in a seemingly cost-saving manner.
The consequences of this bad habit are often devastating. If, as part of a GPLA audit (Joint Audit of Wage Taxes by the Tax Offices and Health Insurance Funds), a reclassification to employee status occurs, then all contributions must be paid retroactively for five years.
This disaster often causes immediate insolvency.
Correct Classification is Crucial
Regardless of whether classic employee, freelancer, subcontractor or cooperation partner – contracts are a solid basis for any cooperation. Of course, only if the contract fits.
Mag. Peter Harlander advises you on the correct classification of your employees, freelancers, subcontractors or cooperation partners and creates tailor-made, legally compliant contracts.
Sample Contracts
Most sample contracts only regulate the bare essentials – so that the contracts fit as many companies as possible. Especially in the IT and creative industries, however, further regulations are necessary, e.g.: copyright clauses, data secrecy, overtime or flextime regulations, non-compete clause, …
The contract generators of our legal packages for agencies and shop operators take these requirements into account. This is the cheapest option for agencies and shop operators.
Paper is Patient
However, the best contract is useless if the content and the lived practice do not match. We therefore advise at least a control meeting, especially in this area.
