Construction Employment Law

Liability under the German Social Insurance Act (Sozialgesetzbuch, "SGB"), the German Act on Minimum Wage (Mindestlohngesetz, "MiLoG") and the German Act on Delegating Employees (Arbeitnehmer-Entsendegesetz, "AEntG") are of great relevance for our clients in the field of construction employment law.

According to the provisions in social insurance law (§ 28 e SGB IV and § 150 para. 7 SGB VII), the main contractor is liable for the subcontractors paying social insurance contributions for their employees who have worked in the contracted construction project. There is a possibility for the main contractor to exculpate itself from liability. The situation is different under the liability imposed by the MiLoG and the AEntG. This involves strict liability, but the risk of liability can be substantially reduced with the appropriate preventive measures. We provide support for you in this field. See Law of Public Levies in Construction. 

At the same time, the problem of apparent freelancers on the construction site is one of the standards topics for investigative authorities. This involves accusations against the responsible persons at the main contractor that the contributions for social insurance have not been properly paid. If the subcontractor is actually not independent and instead works as an employee, there is a substantial threat of consequences for the main contractor under criminal law, civil law and also tax law. We advise you about getting control of the problem of apparent independence. A standard topic in construction continues to be illegally providing temporary employees, and there are new challenges in this field in the area of employment law and social insurance law. This can often also involve criminal law related to construction including prosecution, fines, corporate fines and blocking the award of contracts. 

We, of course, provide services to you through our employment lawyers at the GvW offices in Berlin, Frankfurt, Hamburg and Munich, also about all aspects that arise which are not specific to construction, including employment law issues that involve your company.

Our main areas of services:

Liability for claims for wages, social insurance contributions, workmen's compensation authority contributions and the insolvency funding charge for the subcontractor

Liability of customers under the German Act on Minimum Wage (MiLoG)

Liability of the customer under the German Act on Delegating Employees (AEntG)

Strategies for avoiding and reducing liability

Advice on apparent independence