The Freelance Subcontractor Agreement is essential for businesses operating in Germany that engage independent professionals or contractors for specific projects or ongoing services. This document is crucial in establishing a clear independent contractor relationship while avoiding the risks of pseudo-employment (Scheinselbstständigkeit) under German law. It incorporates necessary provisions to comply with German civil code (BGB), commercial law (HGB), data protection regulations (GDPR/DSGVO), and social security requirements. The agreement is particularly relevant in today's growing gig economy and flexible workforce arrangements, providing a legal framework for engaging external expertise while maintaining compliance with German regulatory requirements. It includes detailed sections on service scope, payment terms, intellectual property rights, and data protection, tailored to meet both parties' needs while ensuring legal compliance.
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1. Parties: Identification of the contracting parties - the contractor and the company, including full legal names, addresses, and registration details where applicable
2. Background: Context of the agreement and confirmation of the contractor's independent business status
3. Definitions: Key terms used throughout the agreement, including 'Services', 'Deliverables', 'Project', and other relevant terminology
4. Scope of Services: Detailed description of the services to be provided, emphasizing the contractor's autonomy in service delivery
5. Term and Termination: Duration of the agreement, notice periods, and grounds for termination in accordance with German law
6. Remuneration and Payment Terms: Fee structure, payment schedule, expense policies, and VAT arrangements
7. Independent Contractor Status: Clear stipulation of the independent nature of the relationship, contractor's business independence, and right to work for others
8. Contractor's Obligations: Key responsibilities, quality standards, and compliance requirements
9. Company's Obligations: Company's responsibilities regarding information, access, and cooperation
10. Intellectual Property Rights: Assignment or licensing of IP rights created during the service provision
11. Confidentiality: Confidentiality obligations in accordance with German Trade Secret Act
12. Data Protection: GDPR compliance measures and data processing obligations
13. Liability and Insurance: Liability limitations and required insurance coverage under German law
14. General Provisions: Standard clauses including governing law, jurisdiction, severability, and entire agreement
1. Non-Competition: Post-contractual competition restrictions (note: must be carefully drafted to comply with German law restrictions on such clauses)
2. Equipment and Resources: Provisions regarding use of own equipment vs. company resources - include when relevant to service delivery
3. Quality Assurance: Specific quality standards and testing procedures - relevant for technical or specialized services
4. Compliance with Industry Standards: Include when the services must meet specific industry regulations or standards
5. Substitute Personnel: Terms for engaging substitute personnel or subcontractors - include if permitted
6. Project Management: Procedures for project management and reporting - relevant for complex service arrangements
7. Force Majeure: Provisions for unforeseen circumstances preventing service delivery
8. Exit Assistance: Transition provisions at contract end - relevant for complex or long-term arrangements
1. Schedule 1 - Service Description: Detailed specification of services, deliverables, and performance metrics
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, payment terms, and invoicing procedures
3. Schedule 3 - Data Processing Agreement: GDPR-compliant data processing terms if personal data is processed
4. Schedule 4 - Service Levels: Specific performance standards and metrics, if applicable
5. Schedule 5 - Approved Subcontractors: List of pre-approved subcontractors if relevant
6. Appendix A - Contact Details: Key contact persons and communication protocols
7. Appendix B - Required Insurance Coverage: Specific insurance requirements and minimum coverage amounts
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