How do general contractors and subcontractors differ?

General contractor

Entire entrepreneur. 1. Term: The entrepreneur entrusted by a client with the execution of an order (usually a construction contract, see also work contract, construction contract, consumer construction contract) who uses other entrepreneurs (subcontractors) to fulfill the order. Legal relationships generally only arise between the client and the general contractor on the one hand and the general contractor and the subcontractors on the other. This form of working group is called General Enterprise designated.

Different:Main contractor.

2. Statutory liability for employee remuneration: In the relationship between the client and the general contractor or in relation to the subcontractors or their employees, the liability regulation of Section 14 of the Posted Workers Act (AEntG) from 2009 applies. The regulation reads: "An entrepreneur who provides another entrepreneur with the provision commissioned by work or services is liable for the obligations of this entrepreneur, a subcontractor or a lender commissioned by the entrepreneur or a subcontractor to pay the minimum wage to employees or to pay contributions to a joint institution of the parties to the collective bargaining agreement according to § 8 as a The minimum wage within the meaning of sentence 1 only includes the amount to be paid to employees after deduction of taxes and contributions to social insurance and employment promotion or corresponding expenses for social security pay is (net fee) ". This regulation is applied analogously by § 13 Minimum Wage Act (MiLoG) to the statutory minimum wage (8.50 euros per hour) that has been in force since the beginning of 2015, i.e. if, for example, a subcontractor does not adhere to his employees, this liability consequence can apply to the whole Extend the chain of pre-commissioners. The introduction of the statutory minimum wage at the beginning of 2015 led to corresponding uncertainty and to attempts to take special security measures. For example, permanent contractual partners in particular have requested extra declarations according to which they pay in accordance with the law and accordingly also ensure that subcontractors employed by them do this.

3. Sales tax liability:Working group.

To distinguish it from the general contractor, see there.