False self-employment is a situation in which somebody registered as self-employed is de facto treated as an employee by a company they work for. They are integrated into the processes and have to follow instructions. But they only receive a fee for their services, and no social security contributions, no paid vacation or sick pay.
Therefore, false self-employment is often a way to circumvent social welfare and employment legislation, for example by avoiding employers' social security and income tax contributions. It often happens involuntarily without the company being aware of it. But because there can be serious consequences if the situation is discovered, companies should be very careful and educate their teams on the topic.