Pre-contractual forecast decisions with on-site inspection
What had actually changed back then compared to the previous legal situation?
With the amendment to the law, the possibility was introduced to have the social security status of a contractor determined in advance upon request even before the activity begins (so-called pre-contractual prognosis decision).
What actually changed compared to the previous legal situation?
The amendment introduced the option to determine the social security status of a contractor in advance upon request, before the activity begins (so-called pre-contractual prognosis decision).
The assessment is based not only on the contractual provisions but also on the parties' statements regarding how the collaboration is actually intended to be implemented in practice.
What consequences did this have for principals (and contractors)?
• Relying on contract texts agreed upon once is risky, both currently and after the amendment.
• The German Pension Insurance may reject an application for a pre-contractual status determination or defer a decision until after the activity has commenced.
• If the actual collaboration later deviates from the assumptions underlying the prognosis, the prognosis decision may be revoked or reassessed.
Note*: The amendment to §7a SGB IV in conjunction with a law implementing Directive (EU) 2019/882 of the European Parliament and of the Council.
Assessment from the principal's perspective: