Guarantors

Guarantors’ liabilities

Contractors are liable for their subcontractors.

Employers are obliged to pay the contributions for their workers in full to SOKA-BAU. If employers do not fully or only partly comply with their duty to pay contributions to SOKA-BAU, SOKA-BAU will take recourse against their contractor or other contracting parties with regard to any contributions due pursuant to § 14 AEntG (Arbeitnehmer-Entsendegesetz -Posted Workers Directive)  and/or §12 SokaSiG  (Sozialkassenverfahrensicherungsgesetz -Social Security Benefits Safeguarding Act).

In this case, contractors are liable towards SOKA-BAU as absolute guarantors.

Implementation of the so-called ’Bürgenfrühwarnsystem’ early warning system

The so-called ’Bürgenfrühwarnsystem’ early warning system offers contractors the opportunity to obtain information from SOKA-BAU as to whether their subcontractors are participating in the leave scheme in an orderly manner. 

To this effect, subcontractors shall authorise their contractors to obtain monthly construction-site related information from SOKA-BAU with details about the exact number of workers deployed, including the gross wages reported.

When presenting such authorisation, SOKA-BAU will inform contractors on a monthly basis whether reports have been submitted and contribution payments been made and/or whether any contributions are overdue, and if so, what amount is outstanding.  

Contractors of prequalified subcontractors and other contractors who can present a so-called SOKA-BAU liability release certificate for their subcontractors will not be held liable by SOKA-BAU as guarantors within the disclaimer of liability limit.