Insights
HR & PAYROLL
Summer job, compulsory internship & Co
Many pupils and students gain work experience or earn a little extra during the summer holidays. Whether a summer job or a compulsory internship, there is a difference under employment and social security law.
For summer workers/summer employees we are talking about pupils or students who want to earn money during the holidays within a classic employment relationship, where this work for pay is not required as a compulsory internship by the school or university. Summer workers or summer employees are subject to personal work obligations, are organisationally integrated into the company and are bound by instructions, and use the employer's resources.
For these employees the same employment law provisions apply as for other employees. They must be registered for compulsory insurance before starting work and are entitled to collective‑agreement remuneration (including special payments), holiday leave and continued payment of wages in case of illness. If the employment lasts longer than one month, contributions to occupational pension schemes must also be paid.
Unpaid compulsory internship
The situation is different for an unpaid compulsory internship. Compulsory interns are pupils or students who, as a supplement to their school education, complete a prescribed internship in a company. Here the training and learning purpose is paramount. Compulsory interns work neither in personal nor economic dependence and receive neither cash nor in‑kind benefits. Therefore there is no obligation to register with the social insurance system. They are nevertheless covered by the statutory accident insurance for pupils and students.
If compulsory interns receive allowance (cash or in‑kind benefits) for their activity, the legal situation changes. In this case income tax liability arises and registration with the social insurance is required. If the internship lasts longer than one month, contributions to occupational pension schemes must also be paid. If there is also a claim to collective‑agreement remuneration, it constitutes a regular employment relationship.
Hotel and catering industry
Special rules apply in the hotel and catering industry. Internships there can be undertaken exclusively within the framework of an employment relationship. Interns therefore in any case have a claim to payment in accordance with the applicable collective‑agreement provisions.
Also in agriculture and forestry internships are generally carried out as employment relationships. In exceptional cases a traineeship (Volontariat) may be agreed. In such cases, however, it should be clarified in advance with the relevant school whether the training purpose is fulfilled and the internship can be credited. The amount of the internship compensation is determined by the collective agreement of the respective federal state.
Anyone wishing to undertake a summer job or a compulsory internship should therefore examine carefully before starting which form of employment applies. This affects not only remuneration and any possible social‑insurance obligation, but also important employment‑law rights.
For these employees the same employment law provisions apply as for other employees. They must be registered for compulsory insurance before starting work and are entitled to collective‑agreement remuneration (including special payments), holiday leave and continued payment of wages in case of illness. If the employment lasts longer than one month, contributions to occupational pension schemes must also be paid.
Unpaid compulsory internship
The situation is different for an unpaid compulsory internship. Compulsory interns are pupils or students who, as a supplement to their school education, complete a prescribed internship in a company. Here the training and learning purpose is paramount. Compulsory interns work neither in personal nor economic dependence and receive neither cash nor in‑kind benefits. Therefore there is no obligation to register with the social insurance system. They are nevertheless covered by the statutory accident insurance for pupils and students.
If compulsory interns receive allowance (cash or in‑kind benefits) for their activity, the legal situation changes. In this case income tax liability arises and registration with the social insurance is required. If the internship lasts longer than one month, contributions to occupational pension schemes must also be paid. If there is also a claim to collective‑agreement remuneration, it constitutes a regular employment relationship.
Hotel and catering industry
Special rules apply in the hotel and catering industry. Internships there can be undertaken exclusively within the framework of an employment relationship. Interns therefore in any case have a claim to payment in accordance with the applicable collective‑agreement provisions.
Also in agriculture and forestry internships are generally carried out as employment relationships. In exceptional cases a traineeship (Volontariat) may be agreed. In such cases, however, it should be clarified in advance with the relevant school whether the training purpose is fulfilled and the internship can be credited. The amount of the internship compensation is determined by the collective agreement of the respective federal state.
Anyone wishing to undertake a summer job or a compulsory internship should therefore examine carefully before starting which form of employment applies. This affects not only remuneration and any possible social‑insurance obligation, but also important employment‑law rights.