Development workers and development aid: Definition and legal framework
Definition and distinction
The term “development worker” refers to individuals who, for a limited period, are professionally active in countries recognized as developing countries by the federal government and participate in development cooperation projects there. “Development aid” (also called development cooperation) thus refers to programs, projects, and financial as well as human resources with which industrialized countries support developing countries in their social, economic, or ecological progress.
In German and international law, development workers and development aid are structured differently in legal terms, concerning status, rights, duties, and contractual relationships.
Historical background and legal classification
Institutionalized development aid has been evolving in Germany and internationally since the 1950s, but the legal classification of development workers and their assignments has been increasingly specified in recent decades. This has occurred in particular to safeguard employment, insurance, and liability law frameworks.
Legal status of development workers
§ 1 Development Workers Act (EhfG)
The activity as a development worker is centrally governed by the German Development Workers Act (EhfG). Pursuant to § 1 para. 1 EhfG, development workers are persons who
- for a period of at least two years
- with the consent of a recognized supporting organization
- work in developing countries
- and do not pursue a predominant intention to earn income.
The work is generally performed in the form of a development service, where the focus is not on personal material gain but on contributing to the development of the host country.
Recognition and supporting organizations
Supporting organizations are officially recognized institutions, often non-profit organizations such as the German Development Service (DED), “Brot für die Welt,” or “MISEREOR.” These organizations enter into written development worker contracts with the development workers.
Distinction from other dispatches
Not every foreign assignment within the context of a development aid measure falls under the definition according to the EhfG. For example, short-term projects, assignments motivated solely by profit, or voluntary activities are not protected and regulated by development worker law to the same extent.
Rights and duties of development workers
Rights
- Contractual protection: Development workers receive special employment law protection through their development worker contract, which regulates aspects such as social and health protection, vacation periods, and remuneration.
- Social insurance: According to § 4 EhfG, supporting organizations are obliged to provide adequate health, accident, and liability insurance, as well as retirement provisions. Special regulations apply to social insurance requirements.
- Legal entitlement to reintegration support: After completion of the assignment, there is a legal entitlement to support for professional reintegration in Germany, for example through integration assistance (§ 6 EhfG).
Duties
- Long-term commitment: The activity must last at least two years (with certain exceptions).
- Waiver of intent to earn income: The law expressly requires that the training and activity serve the assistance or development of the host region and are not primarily for one’s own economic interests.
- Confidentiality obligations: Contractual and service-related confidentiality requirements apply to partner organizations and information from the host country.
Employment, residence, and visa law
Employment law status
The development worker is not in a classic employment relationship with the supporting organization. They are not subject to instructions as in a regular employment relationship. The development worker contract entails different conditions and rights. Special provisions apply regarding working hours, notice periods, and remuneration.
Residence status in the host country
The development worker’s stay in the host country is usually based on special residence and work permits, which are agreed within the framework of cooperation between Germany and/or international organizations and the respective developing country.
Liability law and compensation for damages
Liability during service
According to § 5 EhfG, the supporting organization is liable for damages suffered by development workers during their service and in the performance of their duties, unless alternative coverage exists. Additional regulations on liability insurance also apply.
Tax and contribution regulations
Development workers can, under certain conditions, benefit from tax privileges, for example through tax exemption of earnings under § 3 no. 11 and 13 EStG if paid within the framework of public development aid. Social security contributions are determined by special regulations in the EhfG and SGB.
Aspects under international law
International agreements
From the perspective of international law, the activity of development workers is based on agreements and bilateral treaties. Development workers and their organizations often enjoy special rights, such as protected status or tax relief in the host country.
Implementation agreements
In so-called implementation agreements, supporting and developing countries regulate the modalities of deployment, including visas, liability, immunities, and data protection.
Development aid in general
Definition and distinction
“Development aid” or development cooperation refers to all efforts, especially personnel, financial, technical and material support, that aim to contribute to the sustainable development of a country. The terminology has changed internationally: The term “development aid” is increasingly being replaced by “development cooperation” to emphasize the partnership principle.
Legal framework of development aid
Development aid is governed under international law by international organizations, such as the United Nations (UN), the World Bank, or the European Union, but above all nationally through laws, programs, and bilateral agreements.
In Germany, various laws—including the Budget Act, the Development Workers Act, and funding regulations of the Federal Foreign Office—govern development aid. Funding requirements, project resources, awarding guidelines, and monitoring mechanisms are subject to strict legal requirements regarding transparency and earmarking.
Financing
The development cooperation budget is part of the federal budget and is subject to annual approval by the Bundestag. The legal basis lies in the provisions of the federal budget plan and specific funding laws. The governmental implementing agency is GIZ GmbH; besides this, there are numerous private and church-based organizations.
Control mechanisms and accountability
Both development workers and supporting organizations are subject to duties of care and auditing obligations. The Federal Audit Office and the Federal Ministry for Economic Cooperation and Development (BMZ) conduct checks and evaluations. The aim is the efficient, targeted deployment of public funds in accordance with the guidelines of German and international development cooperation.
Criticism and reform approaches
Development aid and especially the deployment of development workers are frequently the focus of legal and political as well as societal debates regarding efficiency, tax obligations, legal oversight, and sustainability. This results in ongoing adjustments and innovations in the legal framework, particularly concerning good governance, corruption prevention, and the United Nations’ Sustainable Development Goals (SDGs).
Summary
The activities of development workers and the organization of development aid are comprehensively regulated in Germany and internationally. Central is the Development Workers Act, which provides the legal framework for status, insurance, contract, liability, tax treatment, and reintegration benefits. Development aid is organized through a dense web of national and international norms. Both the activities of development workers and the allocation of public funds to development projects in Germany are backed by specific protective laws, contractual standards, and control mechanisms.
Frequently asked questions
What legal requirements must development workers fulfill in order to work abroad?
Development workers must meet certain requirements for a legally secured foreign assignment. These usually include being of legal age as well as holding citizenship of an EU member state or (depending on the supporting organization) of a contracting state to the European Economic Area. Development workers typically form a special status group, for example according to the German Development Workers Act (EhfG). They must first conclude a legally regulated contract (“development worker service contract”) with a recognized sending organization, which sets out tasks, rights, and duties in detail. Additionally, adequate insurance coverage (especially health, accident, and liability insurance) is legally required. In some cases, visa requirements and employment regulations of the host country must be taken into account, meaning that a work permit usually needs to be applied for in advance. Another essential point is medical fitness, which must be proven by a doctor’s certificate. Violations of these legal foundations can jeopardize the status as a development worker and result in civil or even criminal consequences.
What employment law regulations apply to development workers during their foreign assignment?
During their assignment abroad, development workers are subject to the employment law provisions of the Development Workers Act (EhfG), which grants them their own employment law status that differs significantly from a conventional employment relationship. Unlike regular employees, development workers conclude a development worker service contract with the sending organization, which provides for special protection and care obligations. German employment law, such as the Dismissal Protection Act, applies only to a limited extent. Instead, the EhfG takes precedence, being specifically tailored to the special features of foreign assignments. In addition, the employment law provisions of the respective host country apply only insofar as they do not conflict with mandatory German regulations. The development worker is, in particular, not subject to mandatory social insurance under German law, but is instead covered by special social protection provisions implemented by the sending organization.
How do social insurance protections apply to development workers?
Development workers enjoy specific social insurance protection, which is essentially governed by the EhfG. During their foreign assignment, they are usually exempt from compulsory social insurance in Germany. Instead, the sending organizations are obliged to provide comparable insurance benefits at their own expense. These include, in particular, health, accident, pension, and liability insurance. Coverage must be at least equivalent to the German social insurance level. Upon return to Germany, pursuant to § 12 EhfG, there is an obligation to pay supplementary insurance contributions to statutory pension and unemployment insurance for up to three months to ensure seamless integration into the system. Generally, there is no entitlement to statutory health insurance benefits, but substitute benefits are contractually regulated. These regulations ensure that development workers are protected under social law without the risk of double insurance.
What particular liability regulations apply to development workers?
The liability of development workers is largely governed by special regulations in the EhfG and by the service contract conditions of the supporting organization. Development workers are generally liable, both domestically and abroad, for damage caused to third parties intentionally or through gross negligence. Slight negligence, however, leads to liability only in exceptional cases, which, moreover, is usually covered by the liability insurance concluded by the sending organization. In the host country, additional liability issues can arise, for example in case of violations of local laws or due to inadequate briefing on the legal particularities of the host country. The supporting organization is obligated to thoroughly inform development workers about liability-related topics and to provide extensive support in legal disputes. Personal liability can be limited by contractual or statutory indemnifications, especially if the damage occurred within the scope of obligated service.
Are there special tax regulations for the income of development workers?
The income of development workers is generally subject to special tax regulations. Remuneration from development worker service is tax-exempt under § 3 no. 12 of the German Income Tax Act (EStG) if paid by an organization recognized under the Development Workers Act and if the activity fulfills the statutory requirements. Tax exemption is subject to conditions, such as assignment in a developing country and a minimum contract duration of two years. However, depending on the country of assignment, there may be taxation in the host country, so bilateral double taxation agreements must be considered to avoid double taxation. Further tax specifics may arise with benefits in kind or allowances granted by the sending organizations; these may also be tax-free under certain conditions.
What special protective rights do development workers have with respect to occupational health and safety?
Development workers abroad are protected by specific occupational health and safety regulations. According to the EhfG and supplementary German as well as international occupational health and safety laws, the sending organization bears a comprehensive duty of care and protection. It must ensure that working conditions in the place of assignment are safe and comply with general standards. This includes accident prevention measures, medical check-ups, provision of necessary protective equipment, and training on safety-related issues. There is also an obligation for psychosocial support, especially in crisis areas. Development workers have the right to refuse service or demand protective measures if there is danger to life or limb. If the supporting organization fails to fulfill its obligations, this can lead to claims for damages by development workers. Occupational health and safety are based on minimum legal standards both of the sending state and—as far as reasonable—of the host country.
