Bogus self-employment of freelancers: A storm in a teacup?

When major media outlets address the topic of freelancing , they tend to use dramatic language. They speak of "fiascos," "tragedies," and "existential ruins." The message that sticks with the reader is disastrous: anyone who becomes self-employed as a freelancer supposedly enters a legal gray area that sooner or later ends in disaster. As a specialized law firm, we follow this reporting with a mixture of skepticism and astonishment. While the individual cases presented are undoubtedly painful, a distorted picture of reality is painted . It creates the impression of a widespread systemic failure, whereas in our daily practice we often experience the opposite: a functioning legal system that offers clear guidelines – one simply has to know and use them. In our view, the narrative of the demise of freelancing due to bogus self-employment is a classic storm in a teacup that unnecessarily obscures the actual opportunities in the market.

The construction of a crisis: When abuse becomes the norm

It is important to understand the intention behind dramatic articles about bogus self-employment. This needs to be critically examined . Often, a model is described that has little to do with genuine freelancing . If companies deliberately try to save on social security contributions by simply declaring employees who are bound by instructions and fully integrated as "freelancers," then this isn't a problem with freelancing itself. It's simply a deliberate violation of the rules. However, the problem is artificially exaggerated when these black sheep are used as representatives of an entire industry . We observe that this media oversimplification creates a culture of fear, which primarily unsettles those who want to operate ethically. Those who set up their self-employment professionally, have multiple clients, use their own business premises, and present themselves as entrepreneurs enjoy a very high degree of security in Germany. The "gray area" that is so often discussed is usually quite clear and well-defined for informed stakeholders.

The Herrenberg ruling and the art of differentiation

The so-called Herrenberg ruling by the Federal Social Court from June 2022 is often cited as the final nail in the coffin for freelance work. However, closer examination reveals that it merely refined criteria that have long been important for a proper distinction. The fact that policymakers are granting transitional periods until 2027 for certain sectors, such as teaching, is not a sign of the system's failure, but rather of an orderly adaptation process in specific niches. The general uncertainty in the market is often less attributable to the case law itself than to how it is interpreted . For those who follow the rules and regularly review their contracts and practices, the legal situation has not deteriorated dramatically. The "structural problem" conjured up by the media is often simply a lack of information on the part of those involved.

Why professional freelancers have little to fear

A crucial point in the current debate is often overlooked: the German labor market is far more modern and adaptable than its critics claim. In our consulting practice, we regularly see projects being completed successfully and legally. The risk of additional payments is minimal for those who don't operate on the fringes of legality . If clients are now becoming more cautious, that's not inherently a bad thing – it leads to a professionalization of the commissioning processes. Freelancers who present themselves as genuine experts and truly embrace their entrepreneurial freedom are indispensable to the economy. They don't pay a "price" for their flexibility, but rather enjoy the benefits of a market that rewards expertise and agility. The specter of bogus self-employment usually only affects those who have ignored the fundamental groundwork for starting a business.

Conclusion: Professionalism is the best legal protection.

In summary, the "freelancing fiasco" is largely a manufactured problem. The media's focus on dramatic individual cases obscures the millions of smoothly functioning business relationships between freelancers and their clients. We don't need to fear the future, but simply be aware of the existing rules. A labor market that has to choose between permanent employment and supposed illegality doesn't exist – there is a broad, legal space for genuine entrepreneurial freedom. Those who adhere to the criteria and conduct their work transparently can fully exploit the opportunities of the modern working world without having to fear for their livelihood. The system isn't broken; it simply requires professionalism and clarity on both sides.