Coalition pact is in place: Changes to temporary work and the self-employed

On 9 April 2025, the SPD and CDU/CSU signed a coalition agreement (see here). Although much of the wording remains vague, the agreement does contain some relevant employment and social security reform proposals for companies, the self-employed and HR managers. The focus is on reforms relating to the use of contractors in Germany and other countries, as well as the social security classification and protection of the self-employed.

1. New status assessment procedure

The core of the reforms is the announced revision of the status assessment procedure in section 7a of the German Social Code, Volume 4 (Sozialgesetzbuch IV – SGB IV). This procedure is to be made faster, more transparent and more legally watertight – urgently needed since the ruling by the Federal Social Court (Bundessozialgericht – BSG) on 28 June 2022 (B 12 R 3/20 R, Herrenberg judgment) which tightened up the requirements for self-employment (see paragraph 467 onwards of the coalition pact).

Plans include introducing a legal presumption of approval which takes effect automatically after a set period if the Deutsche Rentenversicherung (German state pension insurance) does not make a decision in time. This new feature is to implemented as part of the planned pension reform for the self-employed (see paragraph 471 onwards of the coalition pact).

2. Pension obligation for the self-employed

In future, all “new self-employed workers” who have not been part of a compulsory pension system to date are to be included in the state pension system in an “entrepreneur-friendly” manner. The aim is to reduce the risk of poverty in old age among the solo self-employed. Existing forms of pension provisions are to be retained, however. What will be key is how “entrepreneur-friendly” the new system will actually be (see paragraph 632 onwards of the coalition pact). At the same time, the contribution rate to the artists’ social insurance fund is to be stabilised. The procedure for paying contributions to the fund is to be simplified and the contribution obligation extended to the digital exploitation of artistic works. This may mean a new financial burden for many self-employed workers (see paragraph 638 onwards of the coalition pact).

3. More legal security and digitalisation in international secondments

New standards are to be set at European level too: An electronic social security ID in a digital EU format (EUDI wallet) is to make crossborder work simpler. In future, secondment notifications and documentary proof such as A1 certificates will be able to be carried digitally and in a legally secure form (see paragraph 493 onwards of the coalition pact).

4. Practical prospects

Although many measures depend on funding and others are vague, the coalition pact sends an important signal towards more legal certainty for self-employed professionals and companies. The reform of the status assessment procedure and the planned compulsory pension scheme for the self-employed could create a long overdue regulatory framework, which has become particularly necessary following the Herrenberg ruling. However, the key factor remains the actual implementation – both in terms of legal certainty and practicality for the self-employed and their clients. We will keep you informed about upcoming legislative proposals.

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Do you have any questions on this topic? Speak to us for expert and customised advice. We are a market leader in employment law and company pension schemes, with over 40 professionals specialising in the field.

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Our legal tech solution, Noerr Contractor Compliance Check, helps companies to comply with the law when engaging and deploying external staff. The tool integrates all the necessary processes for purchasing the services of external personnel efficiently and in a way that is legally compliant. For further information, go to our website.

Further resources on the topic of deploying external staff

The latest information on the topic of deploying external staff is available

• in our quarterly webinar series, Quarterly Update on Contractor Deployment (available in German only)
• and our podcast on this topic (Noerr_podcast: Employee status, employee data protection and algorithm transparency in the platform economy) (available in German only)

 

This article is published as part of our Election Insights. All Election Insights and more information on the election and its impact on industry and the economy can be found on our Election Hub (here).