Sometimes it can be difficult to assess whether or not you are in an employment relationship. In such cases, the circumstances of the employment are assessed as a whole.
The main characteristics of an employment relationship:
Employment contract: An employment contract is concluded between the employee and the employer and can be oral, written or electronic. A written contract is always the safest option.
Personal obligation to work: the worker undertakes to work personally and cannot transfer this obligation to another person without the employer’s consent.
Consideration, or pay: a worker is paid a salary or other financial consideration for his or her work.
Under management and supervision: the employer has the right to direct and supervise the work, i.e. the worker is under the management and supervision of the employer.
Employment contract as a sign of an employment relationship
An employment contract is a contract between an employer and an employee that agrees on the work to be done, the wages to be paid and other terms and conditions of employment.
The employment contract must make clear
- Contracting Parties
- Duration of employment
- Tasks and place of work
- Salary and pay date
- Working time
- Period of notice
- Collective agreement to be observed
Temporary employment contract models
Temen’s employment contract templates are freely available. They show you what should be covered by an employment contract. Pay particular attention to the relationship between working time and pay. As a member, you can have your contract checked by the union before signing it.
Read more about Teme's contract modelsCollective agreement
A collective agreement, abbreviated TES, is an agreement between a trade union and an employers’ association or employer. The collective agreement sets out the terms and conditions of employment in the sector, e.g. wages, pay increases, working hours, overtime pay, holidays, leave, sick pay, notice periods and general terms and conditions of employment.
If a collective agreement is generally binding, it must be observed in all workplaces in the sector concerned – even those that are not organised and belong to an employers’ association. Teme negotiates three collective agreements that are universally applicable: the collective agreement for the theatre sector, the collective agreement for film and TV production and the collective agreement for dance teachers.
Read more about the collective agreement in the theatre sector Read more about the collective agreement on film and TV production Read more about the collective agreement for dance teachers Read more about Temen's collective agreementsA collective agreement sets minimum conditions that employers must respect when concluding employment contracts. Better conditions can be agreed with the employee, but not worse than those laid down in the TES.
Travel expenses
Freelancers who travel for work should be aware of the reimbursement of travel expenses and discuss them with their employer or client at the contracting stage. Travel reimbursement refers to the financial compensation paid by the employer or contractor to the employee or self-employed person for the costs incurred for business travel.
Common types of reimbursement for travel expenses are:
Mileage allowance
– Paid for using your own car or other vehicle for commuting.
– In 2025, the tax administration’s recommendation is €0.59/km.
Daily allowance
– Compensation for being away from your permanent place of work for more than 6 or 10 hours (In 2025, part-time allowance 24€ / full-time allowance 53€).
– Covers extra living costs during travel.
Accommodation allowance
– Replaces the cost of hotel or other accommodation on the basis of supporting documents or instead of a daily allowance.
Reimbursement of travel tickets or other travel expenses
– e.g. train tickets, air tickets, taxi fares, fuel costs, etc.
Typical situations
– Business trip to another city
– Visit to a customer
– Training trip at the employer’s request
– Trip to the client by the entrepreneur
If the allowances are paid in accordance with the Tax Administration’s guidelines and ceilings, they are tax-free. If the compensation exceeds these limits, the excess is taxable income.
Termination of employment
The employment relationship can end in different ways depending on its nature and the wishes and needs of the parties. A fixed-term employment contract ends automatically at the end of the agreed period and does not require a separate notice of termination. An employment relationship of indefinite duration, on the other hand, ends with notice of termination by either the employer or the employee. Termination or resignation must be made in accordance with the notice periods and criteria laid down by law or collective agreement.
Termination of employment
The employment relationship can be terminated immediately if one of the parties is in material breach of the contract. Employment relationships are often subject to a probationary period, during which both the employee and the employer are entitled to terminate the employment relationship with immediate effect. The purpose of the probationary period is to see whether the work meets the expectations of both the employee and the employer. The probationary period is often provided for in a collective agreement or has to be specifically agreed in the employment contract.
At the end of the employment relationship, the employee is entitled to a certificate of employment. For freelancers in the arts and culture sector, it is very rare for the next employment relationship to start after the previous one has ended. There will almost inevitably be periods of unemployment in between, during which unemployment benefits may be available.
Read more about unemployment benefitsEmployment condition
A work condition is a condition you must meet to receive earnings-related unemployment benefit, basic unemployment allowance or labour market subsidy. It tells you how long and under what conditions you must have worked before you can get unemployment benefit.
Freelancers should remember that only work done in an employment relationship will count towards the employment condition! Work done on a grant, by invoice, as remuneration or in an agency relationship does not accrue working time.
Why is it important to accumulate a work record?
If you meet the employment condition and are a member of an unemployment fund, you can get a daily earnings-related allowance. If you are not a member but meet the employment condition, you can get a basic daily allowance. If you do not meet the employment condition, you may be eligible for labour market subsidy, which is means-tested.
Read more about accumulating a working condition