Definition and classification
The status determination procedure is the procedure of the German pension insurance under § 7a SGB IVby which it is settled bindingly whether an activity is carried out as self-employment or dependent employment. It prevents False self-employment .
How does the procedure work?
The parties submit details of how the activity is actually organized. The German pension insurance assesses features such as being bound by instructions, integration and entrepreneurial risk, and determines the social security status bindingly. That creates clarity before an unclear engagement turns into expensive back payments.