Three forms, three sets of consequences
| Form | Who handles the formalities | Who it suits |
|---|---|---|
| Employment with posting | The sending employer: contributions, A1, notification, records | Workers who want cover and paperwork without running a business |
| Self-employment | The business owner: own A1, notification, invoices, taxes | Tradespeople with genuine independence and several clients |
| Subcontracting between firms | The Polish company answers for its own crew | Crews delivering a defined package of work on their own account |
Posting under an employment contract
The safest form for longer contracts. The worker keeps home-country insurance, holiday entitlement and protection against dismissal, while the employer takes on the A1, the notification and the records. Pay may not fall below the German sector minimum for hours worked in Germany.
German rules on working time, breaks, Sunday work and minimum holiday also apply where they are more favourable.
Self-employment and the bogus self-employment trap
Running your own business means a higher net rate and flexibility, but every obligation shifts to you: your own A1 (form US-1), the notification, invoicing, taxes and no employment protection.
- Warning signs: one client only, a fixed hourly rate billed like a wage, the client's tools and materials, inclusion in the client's shift plan, a ban on subcontracting.
- Marks of genuine independence: a defined scope of work, own tools, freedom to organise the work, several clients, commercial risk carried by the contractor.
Subcontracting
The company takes a defined package of work and owes a result. The contract should set out clearly:
- Scope and standard of work, with drawings or a bill of quantities.
- Start and completion dates and the consequences of delay on both sides.
- Payment: hourly rate or lump sum, and how variations are billed.
- Payment terms and any retention — typically 5 % until handover.
- Who provides materials, equipment, scaffolding, power, welfare facilities and waste removal.
- The handover procedure and the defects liability period.
- Governing law and jurisdiction.
Checklist before signing
- Check the client in the German commercial register (handelsregister.de): registration, capital, authorised representatives.
- Confirm the rate covers the sector minimum plus travel, accommodation and equipment.
- Establish who pays for accommodation and whether a deduction pushes pay below the minimum.
- Agree an advance or staged payments — a full month of work before any payment is the standard risk.
- Fix payment terms and the consequences of late payment, including the right to stop work.
- Check the contract does not transfer other trades' delays onto your crew.
- Ask for a contract version in a language you understand.
- Have the A1, the notification and liability insurance in place before the first working day.