(English) Vodafone prohibits use of freelancers after CEO spent a year working for more legal certainty

This text is an automatic english translation of our original article about this topic:

Connection cut off: Vodafone renounces self-employed, Photo: Pixabay, mhoppsy

Yesterday evening (22 July) a senior member of Vodafone Procurement Company SARL (Supply Chain Management & Logistics Operations) wrote an urgent mail to five colleagues in his team with the subject "Use of freelancers | Use of freelancers".

However, the actual recipients were the "Dear Vodafone business partners", i.e. Vodafone suppliers. There must be many of them, because this morning we received the e-mail of the Vodafone employee in charge from several of our members.

Use until further notice no longer permitted

In the e-mail, Vodafone prohibits the use of freelancers by consulting companies and personnel service providers who work for the mobile network operator: "We would like to inform you that Vodafone will no longer permit the use of freelancers for contract fulfilment with immediate effect and until further notice.

The term will then be defined more precisely: "By freelancers we mean external personnel without a permanent employment contract for whom no employer pays the statutory contributions, etc.".

Exceptions to the regulation are only permissible with the prior approval of the Vodafone "Workforce Management (FW)" department. The detailed order conditions, which contain special regulations to which reference is made, are attached to the e-mail.

In case of violation: Recourse claims

Vodafone even threatens its suppliers with penalties in the event of non-compliance: "We ask you to take these requirements into account in your quotations with immediate effect. In the event of non-compliance (use of freelancers not approved in advance), we reserve the right to claim recourse."

Suppliers are not able to talk their way out of the new regulations due to a lack of knowledge. You are requested to inform all responsible contact persons in your company about the information on the use of freelancers and to confirm informally that you have taken note of the letter.

Vodafone CEO has been advocating more legal certainty for one year

Vodafone is not the first large German company to prohibit the use of freelancers in whole or in part. Several major German banks have already banned the use of freelancers in whole or in part. For at least one major bank, this has recently led to considerable operational problems, for example in the execution of transfers and direct debits.

On July 11, 2018, Dr. Hannes Ametsreiter, CEO of Vodafone Germany, together with 14 other board members and CEOs of large German companies, had already contacted Federal Employment Minister Heil on the subject: "A digital working world needs digitization experts. Quote from this letter:

"It is already evident today that digitisation experts are migrating abroad and offering their specialist knowledge there in order to avoid the difficulties that exist in Germany.

We don't want to relocate any company divisions abroad. But IT and digital expertise is essential for us. Without it, our digital business will be considerably impeded and our international competitiveness endangered. (...)

Solutions are necessary (...) We are happy to be ready for an exchange in order to discuss common solutions with you. We are looking forward to the dialogue with you."

Minister Heil was represented at talks with 15 board members on the subject of legal certainty

To our knowledge, it took eleven months - until 14 June 2019 - until a personal meeting was to take place. On this day, board members of the 15 German companies travelled to Berlin. In a two-hour discussion with Federal Minister Heil, they wanted to personally explain the existing legal uncertainty once again, make clear the urgency of changes and preferably talk directly about concrete solutions with Hubertus Heil. The conversation would probably have been friendly in tone, but also very clear on the subject.

Minister Heil apologised without giving reasons and was represented by State Secretary Björn Böhning. So far nothing is known about the Ministry's consequences from the discussion.

The consequence of Vodafone on the conversation could very well consist in the Vodafone Purchasing Circular. According to the CEO, if you can't do without digitization experts in Germany and then ban their use a year later because there is apparently a lack of legal certainty, then that's definitely a clear statement. Unfortunately at the expense of the self-employed.

Update

Because the question arose on Facebook: We removed our previous reference to existing special conditions at Vodafone for VGSD club members from our website on Tuesday after the announcement of the "Freelancer ban". In addition, we will terminate our two Vodafone mobile phone contracts concluded in this context with reference to this contribution.

That may be the wrong thing to do, because the German government has created the appropriate framework conditions that have led to this step. Nor is Vodafone the only large company to have taken such a step.

But perhaps such steps will motivate the company to build up more pressure towards the Federal Ministry of Labor instead of simply "banning" all self-employed people and declaring us outlaws at Vodafone. At least we would have expected a word of regret if we had taken such a step in the mail to our suppliers.

From our side this is expressly no boycott call, but a gesture according to the motto: "If you don't want us as a supplier, then you probably don't want us as a customer either".

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