Guarantors and Contractors

As a contractor, you are liable for your subcontractors. What does that mean? All employers in the construction industry are obliged to pay us contributions for their commercial workers. Whenever an employer fails to pay their contributions in full, we claim the outstanding amounts from their contractor. The contractor then has to pay the outstanding contributions on behalf of their subcontractor. The liability of guarantors is established in Section 14 of the Posted Workers Directive (Arbeitnehmer-Entsendegesetz – AEntG). How can you protect yourself from this as a contractor?

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