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the performed work is typical work for an employee or if entrepreneurial thinking and decisionsare necessary. Eventually, this distinction is a matter of the individual case (§ 7SGB IV). Problems can occur for the principal, if the freelance worker turns out to be anostensible self-employee. This leads to the employers duty to pay social insurance contributionsin arrears for a period up to four years as the principal employed an employee.Additionally, fines can be imposed too. Furthermore, the ostensible self-employee is entitledto claim for a employment contract including dismissal protection, paid vacationand paid illness.Because of the legal consequences of a wrong classification, there is the possibility ofperforming a “procedure of qualification” (Statusfeststellungsverfahren) at the Clearingstellefür sozialversicherungsrechtliche Statusfragen, 10704 Berlin, which is an institutionby the German Pension Insurance.This presentation has been established for information purposes only. It may not be relied upon as legaladvice. This presentation cannot be reproduced or distributed without our prior written consent. Please donot hestitate to contact us for further information.Im Breitspiel 969126 HeidelbergGermanyTel. +49 (0)6221 3113.0international@tiefenbacher.deKey contacts:Dr. Gero Schneider M.C.L.g.schneider@tiefenbacher.deMarcello Di Stefanodistefano@tiefenbacher.de34