• Mehr als 3 Millionen Wörter Inhalt
  • |
  • in**@********aw.com
  • |
  • Tel: 03322 5078053
Rechtsanwalt Marian Härtel - ITMediaLaw

No products in the cart.

  • en English
  • de Deutsch
  • Informationen
    • Ideal partner
    • About lawyer Marian Härtel
    • Quick and flexible access
    • Principles as a lawyer
    • Why a lawyer and business consultant?
    • Focus areas of attorney Marian Härtel
      • Focus on start-ups
      • Investment advice
      • Corporate law
      • Cryptocurrencies, Blockchain and Games
      • AI and SaaS
      • Streamers and influencers
      • Games and esports law
      • IT/IP Law
      • Law firm for GMBH,UG, GbR
      • Law firm for IT/IP and media law
    • The everyday life of an IT lawyer
    • How can I help clients?
    • Testimonials
    • Team: Saskia Härtel – WHO AM I?
    • Agile and lean law firm
    • Price overview
    • Various information
      • Terms
      • Privacy policy
      • Imprint
  • Services
    • Support and advice of agencies
    • Contract review and preparation
    • Games law consulting
    • Consulting for influencers and streamers
    • Advice in e-commerce
    • DLT and Blockchain consulting
    • Legal advice in corporate law: from incorporation to structuring
    • Legal compliance and expert opinions
    • Outsourcing – for companies or law firms
    • Booking as speaker
  • News
    • Gloss / Opinion
    • Law on the Internet
    • Online retail
    • Law and computer games
    • Law and Esport
    • Blockchain and web law
    • Data protection Law
    • Copyright
    • Labour law
    • Competition law
    • Corporate
    • EU law
    • Law on the protection of minors
    • Tax
    • Other
    • Internally
  • Podcast
    • ITMediaLaw Podcast
  • Knowledge base
    • Laws
    • Legal terms
    • Contract types
    • Clause types
    • Forms of financing
    • Legal means
    • Authorities
    • Company forms
    • Tax
    • Concepts
  • Videos
    • Information videos – about Marian Härtel
    • Videos – about me (Couch)
    • Blogpost – individual videos
    • Videos on services
    • Shorts
    • Podcast format
    • Third-party videos
    • Other videos
  • Contact
Kurzberatung
  • Informationen
    • Ideal partner
    • About lawyer Marian Härtel
    • Quick and flexible access
    • Principles as a lawyer
    • Why a lawyer and business consultant?
    • Focus areas of attorney Marian Härtel
      • Focus on start-ups
      • Investment advice
      • Corporate law
      • Cryptocurrencies, Blockchain and Games
      • AI and SaaS
      • Streamers and influencers
      • Games and esports law
      • IT/IP Law
      • Law firm for GMBH,UG, GbR
      • Law firm for IT/IP and media law
    • The everyday life of an IT lawyer
    • How can I help clients?
    • Testimonials
    • Team: Saskia Härtel – WHO AM I?
    • Agile and lean law firm
    • Price overview
    • Various information
      • Terms
      • Privacy policy
      • Imprint
  • Services
    • Support and advice of agencies
    • Contract review and preparation
    • Games law consulting
    • Consulting for influencers and streamers
    • Advice in e-commerce
    • DLT and Blockchain consulting
    • Legal advice in corporate law: from incorporation to structuring
    • Legal compliance and expert opinions
    • Outsourcing – for companies or law firms
    • Booking as speaker
  • News
    • Gloss / Opinion
    • Law on the Internet
    • Online retail
    • Law and computer games
    • Law and Esport
    • Blockchain and web law
    • Data protection Law
    • Copyright
    • Labour law
    • Competition law
    • Corporate
    • EU law
    • Law on the protection of minors
    • Tax
    • Other
    • Internally
  • Podcast
    • ITMediaLaw Podcast
  • Knowledge base
    • Laws
    • Legal terms
    • Contract types
    • Clause types
    • Forms of financing
    • Legal means
    • Authorities
    • Company forms
    • Tax
    • Concepts
  • Videos
    • Information videos – about Marian Härtel
    • Videos – about me (Couch)
    • Blogpost – individual videos
    • Videos on services
    • Shorts
    • Podcast format
    • Third-party videos
    • Other videos
  • Contact
Rechtsanwalt Marian Härtel - ITMediaLaw

Player contracts: Employee or contractor?

7. November 2022
in Law and Esport
Reading Time: 3 mins read
0 0
A A
0
meeting 1020145 1280
Key Facts
  • The legal position of e-sports players is dealt with in German law, particularly with regard to contracts.
  • The decision as to whether players should be employees or contractors has significant implications for planning and social security.
  • Employers have the authority to issue instructions and can directly determine the activities of employees.
  • Employment offers social security and often produces more productive and satisfied employees.
  • Dealing with bogus self-employment harbors risks that can lead to financial burdens for teams.
  • Contract review by experts is crucial to avoid costly mistakes in the form of employment.
  • Professionalization and long-term commitment are crucial for success in e-sports.

This article addresses a specific issue in German law regarding the legal status of e-sports players. But it is also about the issue of professionalization of esports contracts, when you hire a player as an employee or simply give him a contract as a contractor, affects the planning, social security and sponsorship management of teams.

Due to numerous requests over the past few months, I decided to write a short article today about a growing problem in esports: should players on a team be employees or contractors?

First of all, it should be emphasized that under German law I can only provide more detailed legal information. Unfortunately, labor law is not harmonized in Europe, and therefore I can only make recommendations outside the Federal Republic of Germany, which are basically part of business development. However, I would very much appreciate feedback from colleagues in other countries and would be happy to add relevant information.

So what is better? An esports player who is employed as an esports team employee or is a contractor?

Well, the question is not so easy to answer, because both have advantages and disadvantages.

Benefits (to the team) of having an employee:

  • As the “employer”, you have direct authority. Within the framework of an employment contract, it is possible to determine to a large extent when and where an employee performs an activity and what this activity should look like.
  • During the term of the contract, a player cannot simply switch, support another team and the like.
  • The services rendered by the employee are generally attributed to the team (“employer”). This applies in particular to the exploitation rights of copyright acts.
  • The costs can be planned very well, as the salaries are contractually agreed and the social security institutions cover any losses. Employees are also covered by statutory accident insurance.
  • Social and financial security often makes workers, and therefore actors, more productive and satisfied.
  • Overall, employees are much closer to the team than a contractor can ever be legally bound.

Disadvantages (to the team) of employing an employee:

  1. Within the framework of notice periods, salary payments are obligatory and statutory notice periods must be observed. This applies in particular within the framework of the provisions on protection against dismissal. In addition, social security contributions and taxes are generally not insolvency-proof.
  2. Various employer obligations mean costs and administrative effort. For example, pay stubs, documentation requirements, employee protection regulations and more must be properly and regularly maintained.
  3. Employees are entitled to vacation, can sign up for regular sick leave, and have numerous other rights. For larger organizations, things like works councils and the like need to be considered.
  4. Other legal regulations such as the minimum wage must be observed.

The opposite is true for contractors in this regard. It is therefore rather difficult to retain people in the long term. This prevents things like transfer fees in principle. It is also difficult for sponsors to “sell” a certain continuity of a team, which is why regular sponsorship payments in larger sums are rather difficult to negotiate. Also, investments in a player, such as training, hardware, and the like, are sometimes more difficult to justify from a business standpoint when that player can move fairly easily to a competing team, and lockout or non-compete clauses are usually difficult to enforce.

Another problem faced by “entrepreneurs” is the largely unresolved legal issue of “bogus self-employment”, at least in the Federal Republic of Germany. This can lead to an enormous financial risk, especially for teams, which often only occurs 2-3 years after the activity, namely when a first social security or payroll tax audit takes place. If the tax office or social security agencies disagree with the team (or, in case of doubt, their legal advisors), often the only option is expensive court proceedings or very high additional payments.

In principle, it is now possible to obtain so-called “binding information” from the social insurance institutions as to whether or not an activity is to be regarded as subject to social insurance. However, this may take time and may also be negative. Thereafter, contracts must be amended and new binding applications submitted. A process that can also be very expensive.

There are many other considerations in favor of a regular employment contract, such as the tournament rules of some gaming providers. Other reasons for professionalization also lead to the need to refrain from all forms of a cooperation agreement.

If you decide to use a freelancer despite the above disadvantages, the corresponding contract should in any case be reviewed by an expert and the structures evaluated. Otherwise, the saved costs can quickly turn into a financial disaster.

This article is just a brief outline of the problems in e-sports. For more details, feel free to contact me at ha*****@*******el.com. The most important thing is to think about the consequences of a particular contract. This includes legal issues as well as problems of a business nature and the professionalization of the team.

 

Marian Härtel
Author: Marian Härtel

Marian Härtel ist Rechtsanwalt und Fachanwalt für IT-Recht mit einer über 25-jährigen Erfahrung als Unternehmer und Berater in den Bereichen Games, E-Sport, Blockchain, SaaS und Künstliche Intelligenz. Seine Beratungsschwerpunkte umfassen neben dem IT-Recht insbesondere das Urheberrecht, Medienrecht sowie Wettbewerbsrecht. Er betreut schwerpunktmäßig Start-ups, Agenturen und Influencer, die er in strategischen Fragen, komplexen Vertragsangelegenheiten sowie bei Investitionsprojekten begleitet. Dabei zeichnet sich seine Beratung durch einen interdisziplinären Ansatz aus, der juristische Expertise und langjährige unternehmerische Erfahrung miteinander verbindet. Ziel seiner Tätigkeit ist stets, Mandanten praxisorientierte Lösungen anzubieten und rechtlich fundierte Unterstützung bei der Umsetzung innovativer Geschäftsmodelle zu gewährleisten.

Tags: E-sportsEsportExploitation lawInformationInsolvencyInvestmentKündigungLabour lawLegal questionLigaManagementSocial securitySponsorUrheberrechtVerträgeWorkers

Weitere spannende Blogposts

Esport: Liability for Cheating and Exploiting

Esport: Liability for Cheating and Exploiting
29. November 2019

Yesterday I promised to submit a brief contribution on the subject of civil or labour liability for cheating and exploiting...

Read moreDetails

Green light for cannabis start-ups – A new chapter begins

Green light for cannabis start-ups – A new chapter begins
28. November 2023

The decision of the coalition government to pass a new, less strict cannabis law in Germany marks a turning point...

Read moreDetails

Spam is not limited to email

Spam is not limited to email
7. November 2022

Today I reported on this ruling of the OLG Nuremberg. Moving away from the actual legal issues surrounding advertising, the...

Read moreDetails

Legal pearls for the weekend

Legal pearls for the weekend
7. November 2022

Apparently everyone is too warm today. The exciting verdicts are out this week and I'm also too hot in the...

Read moreDetails

Virtual Avatars and Influencers: Legal Aspects in the Marketing World

Virtual Avatars and Influencers: Legal Aspects in the Marketing World
5. July 2023

In the ever-changing digital landscape, virtual avatars and influencers have become a significant trend that has the potential to revolutionize...

Read moreDetails

Broadcasting State Treaty and Esport Streams?

Broadcasting State Treaty and Esport Streams?
20. November 2018

Over the past year, there has been a lot of discussion in the games industry about whether professional YouTubers or...

Read moreDetails

The invaluable value of well-drafted contracts: Promoting legal certainty, legal peace and entrepreneurial growth

The invaluable value of well-drafted contracts: Promoting legal certainty, legal peace and entrepreneurial growth
15. May 2023

Introduction: Contracts - the foundation of the business world In my years of practice as a contract specialist, I have...

Read moreDetails

What legal form as an esport team?

What legal form as an esport team?
7. November 2022

What legal form should you aim for if you want to start or professionalize an esports team? The answer to...

Read moreDetails

Stumbling blocks you should be aware of when reading a contract

Stumbling blocks you should be aware of when reading a contract
4. January 2023

Why is it important to read and understand contracts? Contracts are an essential part of everyday life. They help us...

Read moreDetails
pre seed seed finanzierung

Pre-seed / seed funding

27. June 2023

Introduction In the world of startups and enterprise creation, financing rounds are critical to a company's growth and development. Pre-seed...

Read moreDetails
No-shop clause

No-shop clause

16. October 2024
Invitatio ad offerendum

Invitatio ad offerendum

1. July 2023

GmbH & Co. OHG

10. November 2024
earn out klausel

Earn-out clause

26. June 2023

Podcast Folgen

c9c5d7fd380061a8018074c2ca5a81bf

Startups and innovation in Germany – challenges and opportunities

26. September 2024

This insightful podcast episode takes an in-depth look at the startup and innovation landscape in Germany and Europe. The discussion...

9e9bbb286e0d24cb5ca04eccc9b0c902

Legal challenges of innovative business models

1. October 2024

In this captivating podcast episode, I dive deep into the world of legal challenges associated with innovative business models as...

Looking to the future: How technology is changing the law

Looking to the future: How technology is changing the law

18. February 2025

In the final episode of the first season of the ITmedialaw.com podcast, we take a look at the future of...

8ffe8f2a4228de20d20238899b3d922e

Web3, blockchain and law – a critical review

26. September 2024

  In this insightful episode of the ITmedialaw podcast, we take an in-depth look at the intersection of Web3, blockchain...

  • Privacy policy
  • Imprint
  • Contact
  • About lawyer Marian Härtel
Marian Härtel, Rathenaustr. 58a, 14612 Falkensee, info@itmedialaw.com

Marian Härtel - Rechtsanwalt für IT-Recht, Medienrecht und Startups, mit einem Fokus auf innovative Geschäftsmodelle, Games, KI und Finanzierungsberatung.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
  • Informationen
    • Ideal partner
    • About lawyer Marian Härtel
    • Quick and flexible access
    • Principles as a lawyer
    • Why a lawyer and business consultant?
    • Focus areas of attorney Marian Härtel
      • Focus on start-ups
      • Investment advice
      • Corporate law
      • Cryptocurrencies, Blockchain and Games
      • AI and SaaS
      • Streamers and influencers
      • Games and esports law
      • IT/IP Law
      • Law firm for GMBH,UG, GbR
      • Law firm for IT/IP and media law
    • The everyday life of an IT lawyer
    • How can I help clients?
    • Testimonials
    • Team: Saskia Härtel – WHO AM I?
    • Agile and lean law firm
    • Price overview
    • Various information
      • Terms
      • Privacy policy
      • Imprint
  • Services
    • Support and advice of agencies
    • Contract review and preparation
    • Games law consulting
    • Consulting for influencers and streamers
    • Advice in e-commerce
    • DLT and Blockchain consulting
    • Legal advice in corporate law: from incorporation to structuring
    • Legal compliance and expert opinions
    • Outsourcing – for companies or law firms
    • Booking as speaker
  • News
    • Gloss / Opinion
    • Law on the Internet
    • Online retail
    • Law and computer games
    • Law and Esport
    • Blockchain and web law
    • Data protection Law
    • Copyright
    • Labour law
    • Competition law
    • Corporate
    • EU law
    • Law on the protection of minors
    • Tax
    • Other
    • Internally
  • Podcast
    • ITMediaLaw Podcast
  • Knowledge base
    • Laws
    • Legal terms
    • Contract types
    • Clause types
    • Forms of financing
    • Legal means
    • Authorities
    • Company forms
    • Tax
    • Concepts
  • Videos
    • Information videos – about Marian Härtel
    • Videos – about me (Couch)
    • Blogpost – individual videos
    • Videos on services
    • Shorts
    • Podcast format
    • Third-party videos
    • Other videos
  • Contact
  • en English
  • de Deutsch
Kostenlose Kurzberatung