In the dynamic environment of life sciences companies, the integration of freelancers can be a crucial part of the business strategy. Freelancers offer life sciences companies a flexible and cost-effective way to integrate specialized expertise into projects without making long-term commitments. They allow companies to respond quickly to short-term staffing changes and needs and to bring in specific expertise exactly when it is needed. This is particularly important in the life sciences industry, where flexibility and agility are key success criteria.

What are Freelancers?

Freelancers are self-employed service providers who are not subject to the legal framework of permanent employees. In Germany, a freelancer is defined as a person who carries out business assignments without being dependent on the client. This means, for example, that:

• The person is not integrated into the client's work organization

• They are not subject to the client's instructions regarding working hours, place of work and content of the activity

In order to ensure that the employment is legally classified as self-employment and not as an employment relationship, companies must ensure that there is no bogus self-employment. This requires a precise review of the working conditions and the respective freelancer status. It should be noted that each assignment must be checked individually with regard to the compliance guidelines.

What can be Characteristics of Bogus Self-Employment?

The following list is an excerpt of indications that could indicate bogus self-employment:

1. Integration into the company: If the freelancer is integrated into the company's work organization and is treated like an internal employee, this indicates bogus self-employment. Example: Participation in company events.

2. Being bound by instructions: If the freelancer receives instructions regarding working hours, location, and content, which he must strictly follow, this indicates dependent employment and not self-employment.

3. Working exclusively for the company: If the freelancer works exclusively for only one company for more than 18 months and there are no assignments with other clients, this may indicate dependent employment.

4. Disciplinary management: If the freelancer takes on the disciplinary management of employees, it can be assumed that the freelancer is bogusly self-employed.

A more detailed excerpt of possible checkpoints that must be observed when hiring freelancers is listed in the following drop-down section:

Generally, the characteristics that need to be considered when hiring freelancers must be examined individually to minimize existing risks as much as possible. K-Recruiting has also taken measures in this regard.

K-Recruiting supports the entire freelancer recruitment process and deals intensively with the relevant aspects of bogus self-employment. Leveraging the specialized expertise of the internal contract management team and extensive experience from past projects, we mitigate risks as far as possible. Furthermore, compliance experts are always available to clients and candidates to ensure a smooth process flow and the best possible compliance.

Note: The information provided does not constitute legal advice. The information in this article is of a general nature and is provided for information purposes only. If you need legal advice for your individual situation, you should seek the advice of a qualified attorney.