Checklist for short-term employment
1. Duration of employment
- Criteria: A maximum of three months or 70 working days per calendar year across all employers.
If you have several short-term jobs within a calendar year, the periods must be added together.
The employment must be clearly time-limited and must not be regular.
If the expected duration is unknown at the start, short-term employment is not possible.
For employment to count as short-term, there must be at least two months between two assignments with the same employer. - Employers should note: Monitor the duration of employment. Keep accurate records.
Make sure the minimum breaks between assignments are observed. - Employees should note: Keep track of your periods of employment. Find out how several short-term jobs are added together.
Make sure your short-term jobs are not carried out regularly and continuously.
2. Fixed term
- Criteria: The employment must be time-limited from the outset, either by contract or by the nature of the work.
If the expected duration is unknown when the contract starts, short-term employment cannot be agreed. - Employers should note: Make sure the fixed term is clearly stated in the employment contract.
Avoid contracts where the duration of employment is not known from the start. - Employees should note: Check that your employment contract contains a clear fixed term.
Avoid jobs where the duration is unclear at the start.
3. Pay
- Criteria: There is no upper earnings limit.
For pay above €603 per month, you must prove that the work is not done on a professional basis (Berufsmäßigkeit). - Employers should note: Remember that there is no earnings limit. Carefully document pay above €603 per month.
Provide proof that the work is not professional if the pay exceeds this limit. - Employees should note: Know your income level and how it affects your social security obligations.
If you earn more than €603 per month, make sure your job is classified as a secondary job.
4. Not a professional activity
- Criteria: The short-term job must not be the main source of income. It must be an economically minor source of income.
The job should only be done alongside a main activity, such as full-time or part-time employment, university studies, school or a pension. - Employers should note: Make sure the job is not the employee's main source of income.
Document the employee's main activity. - Employees should note: Make sure your short-term job remains a secondary job.
Keep proof of your main activity ready, such as an enrolment certificate if you are studying or an employment contract for your main job
5. Social security
- Criteria: Short-term employees do not pay social security contributions.
However, they are entitled to paid holiday after four weeks of employment as well as continued pay during illness. - Employers should note: There are no social security contributions for health, long-term care, pension or unemployment insurance.
Only contributions to accident insurance, the insolvency benefit levy (Insolvenzgeldumlage) and the U2 levy (“maternity levy”) apply from the start of employment. Contributions to the U1 levy (“sickness levy”) apply from the fourth week after the start of employment.
Remember that short-term employees also have holiday and sick pay entitlements.
Inform your employees about their rights. - Employees should note: Understand that you do not have to pay social security contributions.
Find out about your entitlement to paid holiday and continued pay during illness.
6. Taxes
- Criteria: Short-term employees pay wage tax, solidarity surcharge and church tax as normal.
Under certain conditions, employers can calculate wage tax at a flat rate. - Employers should note: Pay regular wage tax for your short-term employees or use the option of flat-rate taxation.
Document the tax payments carefully. - Employees should note: Be aware that wage tax, solidarity surcharge and church tax apply.
Find out how these taxes are calculated and paid.
7. Registration
- Criteria: Employers must register and deregister short-term employees with the Minijob-Zentrale.
The annual report for accident insurance to the employers' liability insurance association (Berufsgenossenschaft) must include the working hours of short-term employees. - Employers should note: Register and deregister your short-term employees with the Minijob-Zentrale on time.
Record working hours for the annual accident insurance report. - Employees should note: Make sure your employer registers your employment correctly.
Keep records of your working hours and registrations.
Conclusion
Short-term employment is an attractive way to create flexible working relationships. With this checklist, both employers and employees are well prepared to comply with the legal requirements and get the full benefit of this type of employment. If you have questions or are unsure, we recommend contacting experts in employment law or payroll accounting.
If you need support with payroll or managing short-term employment, our team is happy to help. Contact us for individual advice. Learn more about our digital solutions for efficient payroll accounting!
