Definition and legal classification of development service
Development service is a central concept in German and international law within the context of development cooperation and voluntary service. It denotes institutionalized assignments of specially trained professionals who work for a limited period in developing countries to contribute to sustainable economic, social, and ecological development. The legal foundations and framework conditions are governed in particular by the Development Workers Act (EhfG). A comprehensive understanding of the term ‘development service’ encompasses not only the actual deployment procedure, but also the legal obligations and rights of the individuals and organizations involved.
Legal framework for development service in Germany
Development Workers Act (EhfG)
Objectives and intentions of the legislator
The Act on Development Worker Service (Development Workers Act, EhfG) of June 18, 1969 forms the central legal basis in Germany. Its goal is to promote and legally protect the deployment of German nationals or foreigners permanently residing in Germany as development workers. The law is part of German development policy and is situated within the context of international obligations, including in particular the UN Sustainable Development Goals (SDGs).
Definition of development worker (§ 1 EhfG)
The EhfG defines development workers as persons who
- volunteer for a period of at least 2 years (exceptions possible in the case of reduction for important reasons)
- on the basis of a service contract with a recognized sending organization
- voluntarily
- waive gainful employment, i.e., receive only low financial remuneration
- outside Europe
- in the context of development cooperation
are active.
The requirements of voluntariness and the renunciation of profit-seeking fundamentally distinguish development service from other forms of overseas assignments.
Recognition of sending organizations (§ 2 EhfG)
Organizations that send development workers must be officially recognized under § 2 EhfG. Requirements include working for the public good, ensuring appropriate selection and support structures, and respecting the goals and principles of German development policy.
Duties and rights of development workers
Contractual framework (§ 3 EhfG)
Development workers operate under a private-law service contract. The contract must meet the special requirements of a development service. Aspects such as location, job description, duration, remuneration, insurance coverage, and repatriation assistance are mandatory components of the contract.
Social and insurance law protection (§§ 5-8 EhfG)
The EhfG explicitly regulates the following areas of protection:
- Statutory accident insurance: Development workers are legally insured against accidents during their assignment.
- Health and liability insurance: Sending organizations are required to provide comprehensive health and liability insurance coverage.
- Pension law regulations: Service as a development worker counts under certain conditions as a period of mandatory contributions in the statutory pension scheme according to § 7 EhfG, provided insurance obligation does not already exist elsewhere.
These special arrangements serve to protect development workers and compensate for the particular strains of international assignments.
Termination and repatriation regulations (§ 4 EhfG)
The law governs the early termination of the service relationship, for example for health or family reasons or in cases of danger or force majeure. There is also support for return and reintegration, including measures to assist with professional reintegration.
Providers of development service
Recognized sending organizations
The providers recognized by the Federal Ministry for Economic Cooperation and Development (BMZ) include, among others:
- Deutscher Entwicklungsdienst (DED, now integrated into GIZ)
- Brot für die Welt – Evangelischer Entwicklungsdienst
- Dienste in Übersee of the Evangelical Church in Germany
- Senior Experten Service (SES)
- Weltfriedensdienst
Recognition may be granted under strict conditions and can also be revoked.
Obligations of sponsoring organizations
Recognized organizations must not only be responsible for the selection, preparation, and support of development workers, but also for their insurance and social protection as well as the observance of minimum labor law conditions.
Distinction from other international services
Difference from voluntary service
Development service under the EhfG must be distinguished from short-term international voluntary services (such as the ‘weltwärts’ program or the European Voluntary Service). The distinction is made in particular with regard to minimum duration, scope of activity, and the level of legal protection.
Difference from gainful employment abroad
While regular employment relationships abroad are subject to the laws of the respective host country and often also to German labor contract law, specific provisions of the EhfG apply to development service.
International legal and global context
Federal Government involvement and international obligations
Development service is a tool for implementing international treaties and agreements within the framework of development cooperation, including:
- Goals of the 2030 Agenda for Sustainable Development of the United Nations
- Obligations within the framework of OECD development cooperation
- Contribution to European and multilateral development cooperation
International recognition of comparable programs
Other countries also have programs comparable or similar to the German development service, for example, the ‘Peace Corps’ in the USA or the British ‘Voluntary Service Overseas’ (VSO), though without identical legal regulation.
Tax and social security aspects
Development workers are privileged under special regulations concerning tax law and social security. According to § 3 No. 56 of the German Income Tax Act (EStG), subsidies paid for service in development work from public funds are tax-free. At the same time, there are contribution obligations and entitlements in statutory health, pension, accident, and unemployment insurance, provided that no other relevant entitlements (e.g., from a foreign social security system) exist.
Conclusion
Development service as defined by the Development Workers Act is governed by extensive and detailed legal regulations. It constitutes a special form of service in development cooperation, characterized by voluntariness, non-profit character, renunciation of profit-seeking, and a high level of social protection for those involved. The legal provisions ensure security and social protection for development workers as well as legal certainty for the participating organizations. The system makes a significant contribution to fulfilling international obligations and promoting global sustainable development.
Frequently Asked Questions
What are the specific labor law provisions that apply to development workers in development service?
In Germany, development workers are subject to a special legal employment status which is primarily laid out in the Development Workers Act (EhfG). According to the EhfG, development workers are not classified as regular employees under German labor law, but have a special status. Service contracts with recognized sending organizations, such as ‘Brot für die Welt’ or ‘Deutscher Entwicklungsdienst’ (DED), contain specific provisions regarding notice periods, liability, and return guarantees. There are also exemptions regarding maternity protection, protection against dismissal, and co-determination. Importantly, although a conventional employment relationship does not exist, numerous labor law principles are accordingly applied, particularly with regard to duties of care, occupational safety, and health.
How is insurance coverage for development service regulated by law?
Insurance coverage for development workers is expressly regulated by the Development Workers Act (§ 6 EhfG). There is an obligation for the sending organization to provide comprehensive health, accident, liability, and repatriation insurance. Furthermore: During an overseas assignment, development workers generally do not have coverage under German social insurance (pension, health, long-term care, unemployment insurance) unless a special agreement for continued or subsequent insurance has been made. After return, the EhfG provides for special subsequent insurance obligations under the German pension system for the period of service.
What tax regulations apply to payments during development service?
Remuneration (service pay, benefits in kind, etc.) paid during development service is exempt from tax under § 3 No. 13 of the German Income Tax Act (EStG), provided that the service is performed with a sending organization recognized under the EhfG and that the minimum period of two years is met. There may be a tax liability if the recognized requirements are not fulfilled or if other payments are made that do not fall under § 3 No. 13 EStG. Nevertheless, development workers are required to declare the development service in their tax return, as this information may be relevant for assessing other tax obligations (e.g., progression clause).
What legal obligations do development workers have in the host country?
Development workers are legally obliged by their status under the EhfG to comply with the laws of the host country. In addition, they are subject to the instructions and regulations of the sending organization. Violations of obligations can have disciplinary or contractual consequences, such as premature termination of the development service contract. Depending on the host country, further registration obligations, work permits, or visa requirements may be relevant, which development workers are also bound to observe. The internationally recognized principle of extraterritoriality generally does not apply to development workers.
Are there entitlements to benefits after returning from development service?
According to the EhfG, after completion of their service, development workers are entitled to special benefits, particularly in the area of pension insurance; the German pension insurance institution must grant subsequent pension insurance coverage for the period of development service. As for unemployment law, entitlement to unemployment benefit exists only if eligibility was established through previous mandatory insurance employment. Where development service led to interruptions of social benefit entitlements, reintegration assistance and advisory services are also provided, as regulated by the EhfG or supplementary frameworks such as SGB III.
To what extent are development workers subject to German law in cases of civil disputes during service?
Development workers acting on behalf of a recognized sending organization are, in civil disputes, particularly those arising from the service contract, generally subject to German law unless otherwise contractually agreed. In most cases, German labor courts have jurisdiction over disputes arising from the service relationship. However, for disputes with third parties in the host country, the law of the host country may apply; conflict of law rules, particularly the Rome I Regulation and the Introductory Act to the German Civil Code (EGBGB), are relevant in this context.
What special regulations apply to the termination of the development service relationship?
The termination of a development service relationship is primarily governed by § 7 EhfG and contractual agreements. Notice periods can differ significantly from those typical of regular employment. There are specific reasons that entitle the sending organization to terminate the contract without notice, including serious breaches of duty, health unsuitability, or other serious grounds. Upon proper completion of the contract, development workers are often entitled to return benefits and post-assignment support from the organization. Any repayment obligations for expenses or equipment are also regulated by law and contract.
