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Employment- and Social Security Law

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The "four-day week" - new opportunities for employers in the labour market?

The "four-day week" is currently the subject of much discussion. It seems to fit in with the striving for a better "work-life balance", especially but not only among the younger generation. Not least for this reason, the Ger­man trade union IG Metall has taken up the efforts to reduce working hours from 35 to 32 hours per week and to distribute them over four days and has announced a corresponding decision for the objectives of the up­coming collective bargaining in the steel industry at the end of 2023. Should this be a success for IG Metall, other trade unions are likely to follow and eventually even employers not bound by collective agreements will also come under pressure to join in to maintain their competitiveness in the labour market. It is therefore worth­while to look into the existing models and possibilities of realization a "four-day week" at an early stage.

The "four-day week" has already been successfully tested in Great Britain in a pilot project. In this project, 61 companies allowed their employees to reduce their working hours to 80% over four days with full wage compensation, but on the condition that there would be no loss of previous productivity. Satisfaction was so high on both the employer and employee side after the six-month test period that 92% of the participating companies will continue with the reduced working time and 30% of the companies even want to introduce the "four-day week" permanently. The implementation of the "four-day week" was a com­plete success and is even said to have led to more productivity, a decrease in stress levels and a reduction in sick days among employees as well as a better balance of family/leisure time and work.

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From Dr. Oliver Lücke und Dr. Galina Daskalov

Social security: employing pseudo-self-employed also has consequences under crimi­nal law - legal certainty is more important than ever!

Pseudo-self-employment is when a person on the labor market creates the legal appearance of self-employment, although an employment relation­ship actually exists. Self-employed persons are in principle not obliged to pay health-, nursing care-, unemployment- and pension insu­rance contribu­tions. Dependent employees, on the other hand, are subject to compulso­ry social insurance.

The consequences of pseudo-self-employment for the employer are immense: social security contributions as well as late payment sur­charges can be reclaimed retroactively for up to 4 years and, in the case of deliberate withholding, for up to 30 years. Now, the Federal Supreme Court has also convicted a law firm owner under criminal law for withholding and embezzling the social security contributions of his employees (judgement of 08.03.2023, file no. 1 StR 188/22).

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From Iris Brandes und Dana Schneider

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