False self-employment or hidden employment relationship

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Aklima@4
Posts: 13
Joined: Tue Dec 17, 2024 4:40 am

False self-employment or hidden employment relationship

Post by Aklima@4 »

In the current times of economic crisis, the debate often arises about the figure of the so-called “false self-employed”. In this article we are going to analyze what it is, and establish the differences between the TRADE (Dependent Self-Employed Worker) and the hidden employment relationship known as false self-employment.

What is the figure of a false self-employed person?
It is usually defined as a fraudulent scheme used by some companies to avoid hiring their workers, thereby allowing them to save on Social Security costs.

A false self-employed person performs the same work as other employees of the company, under the same conditions and requirements. But in addition to that, he is also obliged to comply with the obligations that come with being self-employed, without actually enjoying the rights of either type of worker.

Therefore, it is an illegal situation that fundamentally benefits companies , while for the worker himself being a false self-employed person has only disadvantages:

He does not have a payroll . He must issue an invoice for the services provided, and therefore pay taxes to the Tax Agency and contribute to the self-employed worker regime. He will also have to register with Social Security.
You are not subject to a minimum wage . The company sets your salary, not the other way around. In addition, you must deduct the amount of the self-employed fee from your salary, regardless of how much you earn.
You are not entitled to unemployment benefits or severance pay.
You do not enjoy paid vacations , nor permits or reductions in working hours , unless these are clearly reflected in your commercial contract.
In some cases, the material to work with is not small business email list provided , so you must use your own means to carry out your task.
These are the main disadvantages faced by a worker who works for a company as a false freelancer.


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On the other hand, there is a different type of worker, whose figure is legal and regulated by the Statute of Self-Employed Workers , which is the previously mentioned economically dependent self-employed worker or TRADE .

According to Law 20/2007 and article 11.1 of chapter III, these are individuals who carry out an economic or professional activity for profit and on a regular, personal, direct and predominant basis for a client, on whom they depend economically because they receive from him at least 75% of their income from work and economic or professional activities.

In addition to the obligations that come with being a self-employed worker, with this modality, TRADEs are also subject to the following conditions:

They may not employ employees or outsource their activity in whole or in part.
They cannot carry out their work activity or services in the same way as the client's employees and be subject to the same conditions as them.
They cannot be owners of commercial or industrial establishments or premises open to the public.
They must have their own resources and infrastructure to carry out their work.
They carry out their tasks according to their own organisational criteria, without the client being able to give any instructions that the worker is obliged to follow.
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