🚫 Undeclared work, false self-employment and immediate notification
In brief
Particularly strict rules apply in the construction industry to prevent undeclared work.
- Immediate notification (Sofortmeldung): As an employer in the construction industry you must report employees to the pension insurance at the latest when employment starts.
- Carry ID: Employees must have their identity documents with them. You must point this out to them in writing.
- False self-employment: Someone who works as self-employed but is in fact in dependent employment can trigger back payments. A status determination can clarify this.
If in doubt, get advice beforehand: from the pension insurance, the chamber or a legal adviser.
Step by step
- Have an employer numberYou need it for every notification.
- Submit the immediate notificationAt the latest when employment starts, to the data office of the pension insurance.
- Notice on the duty to carry IDPoint this out to employees in writing, provably, before work begins, and keep the proof.
- Clarify the statusIf in doubt whether someone is self-employed or employed: apply for a status determination.
Deadlines
- The construction industry is the first of eleven sectors to which immediate notification applies.
- Employees in the construction industry must carry identity documents and show them to the Zoll (customs) on request (§ 2a SchwarzArbG). Employers must point this out in writing.
- Rules and fines on undeclared work and false self-employment were not evaluated in detail here. Get advice.
- Parts of § 7a SGB IV (Abs. 2 Satz 2 and 3, Abs. 4a to 4c, Abs. 6 Satz 2) expire at the end of 30 June 2027.
In depth · legal basis, figures and practice – for advisers and professionals
Immediate notification
§ 28a Abs. 4 SGB IV: employers in the eleven sectors named there, first of all the construction industry, must report the start of employment to the data office of the pension insurance at the latest when it begins. The following must be stated: name, insurance number (or date of birth and address), employer number and start date. Other sectors include restaurants, haulage, building cleaning, the meat industry and the security industry.
Duty to carry documents
§ 2a SchwarzArbG obliges employees in the eleven named sectors to carry their identity documents and show them to the inspection authorities on request. The employer must point this out to them provably and in writing before they start work and keep the proof.
Status determination
Under § 7a SGB IV, the Deutsche Rentenversicherung Bund decides on application whether a contractual relationship is employment or self-employment. The procedure is possible in writing or electronically. If the application is made within one month of starting the activity, the insurance obligation under para. 5 arises only when the decision is announced, if the employed person agrees and there is cover against the risk of illness and for retirement provision in the meantime. Para. 4a allows a decision even before the activity starts. Other insurance providers are bound by the decisions of the Deutsche Rentenversicherung Bund. Parts of § 7a (Abs. 2 Satz 2 and 3, Abs. 4a to 4c, Abs. 6 Satz 2) expire at the end of 30 June 2027.
Distinction
Which features point to false self-employment (subject to instructions, integration into the business) was not evaluated here from case law or administrative guidelines.
A question about your situation that this page does not answer? Write to us or use the contact form – we will tell you which office is responsible and what to bring. Free of charge, without individual legal advice.