Berlin Labor Court: Freelance work by music school teachers is clearly distinct from employment relationships
In its judgment of June 10, 2024 (Case No.: 22 Ca 10650/24), the Berlin Labor Court once again had the opportunity to highlight the important criteria for distinguishing between so-called freelance work and an employment relationship subject to social insurance. The subject of the proceedings was the claim of a music school teacher who argued that the actual scope and conditions of her work constituted an employment relationship within the meaning of Section 611a of the German Civil Code (BGB). However, the court dismissed the claim—with a remarkably detailed rationale.
Facts of the case: Music school teacher seeks clarification of her employment status
In the present case, the claimant worked for several years for a music school. Her activities were based on various contracts for freelance work, in which she undertook specific instrumental lessons. She was solely responsible for the structure and implementation of her lessons. In practice, however, she used, among other things, the music school’s premises, accessed its infrastructure, and was included in the lesson schedule. Subsequently, she brought a legal action, claiming, among other things, continued payment in the event of illness and protection against dismissal, arguing that there was in fact an employment relationship.
The Berlin Labor Court dismissed the claim. There was no employment relationship, but rather a service relationship as an independent music educator. The decision again underscores the tension between contract drafting and the actual execution of the work.
Criteria for distinguishing freelance work from employment relationships
Key characteristics
The central legal basis for assessing the status of an employment relationship is Section 611a BGB. According to this, the decisive factor is whether there is a right to give instructions regarding the content, execution, time, and place of the activity, and whether the worker is integrated into the operational organization of the contracting party.
The court specifically examined:
- Right of direction: The music school did not provide binding specifications with regard to the exact lesson content or the choice of teaching methods.
- Organizational integration: Although the claimant made use of the music school’s infrastructure, she was in principle not involved in workflows beyond her actual teaching.
- Personal responsibility: The arrangement of lessons, scheduling with students, and any substitutions fell within the claimant’s area of responsibility.
- Remuneration and risk: Compensation was paid only for teaching units actually delivered; there was no entitlement to continued payment of wages in the event of illness.
Contractual terms versus actual practice
The judgment clarifies that the formal designation of a contract is not necessarily decisive; what always matters is the actual implementation of the employment relationship. In this case, the element of personal responsibility was predominant. In addition, typical characteristics of an employment relationship such as regular attendance obligations, inclusion in company holiday planning, or integration into the general operations of the music school were lacking.
Legal relevance for the music and cultural sector
Industry-standard contract forms
Especially in the field of artistic and educational services, the distinction between freelance work and dependent employment is of particular importance. Music schools and cultural institutions regularly face the challenge of drafting contracts in a legally secure manner and complying with statutory regulations.
Liability risks and social security consequences
Incorrect determinations of status can lead to substantial claims by social insurance providers and are associated with further financial and organizational risks. The Berlin Labor Court’s decision once again raises the bar for contract drafting, documentation of cooperation, and ongoing review of day-to-day working arrangements in the context of current case law.
Significance of the judgment for principals and contractors
Room for maneuver and uncertainties
The decision provides guidance but at the same time emphasizes the necessity of an individual assessment in each case. Determining the status of a form of cooperation remains a matter of weighing various factors, in addition to legal considerations, economic and practical factors must also be taken into account.
Outlook
The case highlights the dynamic nature of labor and social law in the creative professions and calls for diligent contract drafting. While the decision provides some clarity for similar constellations, even minor deviations in individual cases may lead to different assessments.
Source reference: ArbG Berlin, judgment of 10.06.2024 – 22 Ca 10650/24 (available e.g. at <a href="https://urteile.news/ArbG-Berlin22-Ca-1065024Freie-Mitarbeit-einer-Musikschullehrerin-ist-kein-Arbeitsverhaeltnis~N35253″>urteile.news)
For legal questions regarding contract drafting and status assessment of freelance collaborators, the lawyers at MTR Legal are pleased to be available to their clients as their point of contact.
