What types of employment are there?
1. Regular employee
A regular employee's working hours, place of work and tasks are usually set out in the employment contract. The job can be full-time or part-time. In return, the employee receives a fixed salary or pay based on an hourly wage, a daily rate or a monthly flat rate.
The employer must register the regular employee with social security. The employer also pays social security contributions such as health insurance, pension insurance and unemployment insurance. In return, the employee is entitled to occupational health and safety protection, continued pay during illness and paid holiday.
2. Managing Director
A managing director (Geschäftsführer) is a person who manages a company or organisation. This is usually a leadership position with a high level of responsibility and decision-making authority. Managing directors can be either employed or self-employed. Managing directors who are unsure whether they count as employed or self-employed should apply for a status determination procedure (Statusfeststellungsverfahren), for example with the German Pension Insurance.
3. Minijob
Minijobbers are people in marginal employment (geringfügig entlohnte Beschäftigung). This is employment where the monthly income does not exceed €603. Minijobbers are treated differently for tax and social security purposes. They are exempt from certain contributions.
4. Short-term employees
Short-term employees are people who work for a company or organisation for a limited period. This type of employment is limited to a maximum of three months or 70 working days per year. Short-term employees are also treated differently for tax and social security purposes.
5. Interns
Interns are people doing an internship at a company or organisation. This is usually a temporary job that serves career orientation, training or further education. Internships can be paid or unpaid.
6. Working students
Working students are people who work for a company or organisation alongside their studies. This type of employment is limited to a maximum of 20 hours per week. Working students usually receive special treatment for tax and social security purposes.
7. Apprentices
Apprentices are people completing vocational training in a company. This is dual vocational training that covers both theory and practice. Apprentices receive a training allowance during their apprenticeship.
8. Employed pensioners
This type of employment covers people who have already reached retirement age but continue to work. They often have a pension or other sources of income. They still want to keep working to use their skills, stay socially active or earn extra income.
In many cases, these pensioners have part-time or flexible employment contracts so they can balance their job with their other commitments.
Conclusion: What types of employment are there?
Choosing the right type of employment is essential for complying with employment, tax and social security rules. Each type of employment comes with its own rights, obligations and options. These should match the needs of the company and its employees. A careful analysis of the requirements and advice from experts help you find the right solution and make it work in the long term.
