On-demand work: risk of phantom wages

In many companies there is great uncertainty when employees are deployed on call (on-demand work). This often affects mini-jobbers or flexibly employed part-time employees subject to social security contributions, who often work without a written employment contract.

On-demand work is particularly the case

  • if the scope of the work to be performed is not contractually specified, and
  • the employee is to be used “flexibly” according to the agreement reached.

Effective January 1, 2019, according to [sg_popup id=”2178″ event=”click”]§12 TzBfG[/sg_popup], the scope of the legally stipulated weekly working hours increased from 10 hours to 20 hours, if there is no agreement in place.

Since January 1, 2019, there has been an increased risk of so-called “phantom wages” and any subsequent calculation of social security contributions as part of a social security audit. This can lead to significant financial risks for companies that employ on-call staff. Therefore, companies should regulate on-demand work in advance in accordance with the law.

There are many possible solutions for the regulation of retrieval work in accordance with the law, e.g. regulations on demand work, minimum or maximum working hours.

Feel free to contact us with any questions. We will then work out individual solutions with you, under involvement of experts in labor and social security law.

Source: DATEV

Photo: Juan Gomez, Unsplash

Disclaimer: We assume no liability for the accuracy of the information. The information listed here does not constitute recommendations for action.