Bogus self-employment (Scheinselbständigkeit) exists when you formally work as a freelancer but in practice are deployed like an employee. German law does not answer the question of how to spot it with a fixed checklist. Instead, courts and social insurance bodies look at the overall picture, based on a few features you can check for every assignment.
Short answer: You are in a bogus self-employment situation when you carry out an assignment as a freelancer but work under the client’s instructions and are integrated into the client’s work organisation. What counts is how the work is actually carried out, not the label in the contract (§ 7 para. 1 SGB IV, § 611a BGB). Last updated: November 2026.
The most important points
- What matters is how the assignment works in daily practice. The contract and the invoice say little about it.
- Instructions on content, place and timing of the work point towards employment.
- Integration into the client’s work organisation, such as rosters or fixed teams, is a further indicator.
- If you work almost exclusively for one client, review your status more carefully.
- If the situation remains unclear, a status determination procedure can bring certainty.
What does the law say about employment?
Under § 7 para. 1 SGB IV, employment means dependent work, in particular under an employment relationship. The provision names two indicators for employment: work carried out under instructions, and integration into the work organisation of the person giving instructions. The wording is published on buzer.de (in German), and the version shown there records an amendment by a law dated 24 July 2026.
Employment law follows the same logic. Under § 611a para. 1 BGB, a person is bound by instructions if they cannot largely determine their own work and working time. The right to give instructions can cover content, execution, time and place. Whether an employment contract exists depends on an overall assessment of all circumstances. If the actual performance of the contract shows an employment relationship, the label used in the contract does not matter. The text is available at lxgesetze.de (in German).
How can you recognise bogus self-employment in assignments?
The table below summarises the features that are checked most often in practice. No single feature decides the matter alone. What counts is the overall picture.
| Feature | Points more towards self-employment | Points more towards employment |
|---|---|---|
| Organisation of the work | You decide how and in which order you work | The client sets processes and methods |
| Working hours | You decide when and how much you work | Fixed shifts or required presence are set |
| Place of work | You work from a place of your choice | You work at the client’s premises to its schedule |
| Number of clients | You have several clients and actively look for work | You work practically only for one client |
| Entrepreneurial risk | You bear costs, materials and the risk of no income | The client provides equipment and pays regardless of the result |
| Substitution | You can have the service delivered by a third party | You may not be replaced in the work |
Which questions should you ask before accepting?
Before you accept an assignment, a short check is worthwhile. The steps below take little time and quickly show whether the arrangement is sound.
- Read the contract and note what you owe: a finished result or a defined activity with fixed specifications.
- Ask who sets the working hours and whether you receive rules on location, method or software.
- Clarify which tools you provide yourself and which the client provides.
- Count how many clients you work for in parallel and check whether a non-compete clause applies.
- Record working hours, instructions and agreements in writing, for example by email.
Documentation is not an end in itself. It helps in a dispute and in a status determination procedure, because it lets you show how the work was actually carried out.
What role does the pension insurance scheme play?
If you are unsure, you can have your status clarified. The German Pension Insurance Scheme (Deutsche Rentenversicherung) examines the actual circumstances of the assignment. We explain how to prepare the application and which documents are useful in our guide on status determination (in German).
What does a typical case look like?
Assumption: you work twenty hours a week for one company, receive a duty roster, use the company’s software and phone, and issue a monthly invoice for your hours. You have registered a trade, but you have no other clients. Instructions, integration and the lack of entrepreneurial risk point towards employment here. The invoice and the trade registration change nothing about that.
The picture changes if you take on a clearly defined project for an agreed price, set your own place and time, use your own software and work for other clients at the same time. Even then the details of the arrangement matter. A quick search online does not replace a proper review of the contract.
The distinction from a contract for work and services (Werkvertrag) is also important. There you owe a specific result, for example a finished translation or a working function, and you decide yourself how to get there. Whether the contract deserves that label again depends on practice. If the result becomes, in fact, hourly work under detailed instructions, the classification shifts. We cover the difference in detail in our guide on contracts for work and employment contracts.
What does this mean for delivery services and platforms?
Delivery services raise the question particularly often, because riders book shifts through apps and are paid per job. According to the federal government’s answer of April 2026, the implementation of the EU platform work directive was still in progress. We discuss the details in our guide on delivery services.
Frequently asked questions
Is a trade registration enough to prove I am self-employed?
No. A trade registration is a formal notification and says little about how the assignment works in practice. Authorities and courts look at how you actually work. A trade registration can still make sense, for example if you serve several clients.
May I work for only one client?
Yes, but this increases the risk that the activity is classed as employment. The more you depend on one client and the more its instructions shape your work, the more carefully the contract should be checked.
Does using my own equipment change the picture?
Your own equipment supports self-employment, but it is not a guarantee. If the client sets processes and times, your equipment helps you little. Look at all the features together rather than relying on one.
Does this check also apply to mini-jobs?
A mini-job is already an employment relationship, so the question of bogus self-employment does not arise there. It does arise for assignments that you invoice as a freelancer, even if you also hold a mini-job.
Who can help if the client sees your status differently?
First, raise the disagreement in writing and record your view. Advice from the German Pension Insurance Scheme and specialist employment law advice can help. Whether you can enforce any claims depends on the individual case.
How to proceed now
- Check your next assignment against the table and note the results.
- Keep instructions, working hours and tools in writing.
- Clarify your status before you start work if anything is unclear.
- Have a contract that binds you tightly reviewed by a specialist adviser.
Related guides
- Founding a business alongside your studies: funding and advice
- Freelancing as a Student: How to Land Your First Orders
- Bogus self-employment in delivery services
- Status determination with the pension insurance scheme (in German)
- Tax registration questionnaire
Sources: § 7 SGB IV, wording on buzer.de (in German), § 611a BGB, wording on lxgesetze.de (in German).
Last updated: November 2026. This guide is general information, not individual advice.
