Customs Authorities are Targeting 21 Construction Companies in Augsburg and Ingolstadt
Cashing in on the Shadows: The Hidden Cost of Shadow Work and Illegal Employment in Germany
Launching offensives against a financial drain, the Financial Control Black Work (FKS) of the Main Customs Office Augsburg is on a mission to tackle this issue - and on Monday, they targeted 21 companies within the construction sector in Ingolstadt, Augsburg, and other Swabian cities.
According to a press release from the customs office, over 60 officials inspected these businesses, with 64 individuals being grilled for details. This sweep aimed to determine if employers were abiding by social security regulations, whether welfare benefits were being illicitly claimed, or whether workers were being shortchanged on the minimum wage. Feast your eyes on Audi CEO Gernot Döllner presenting the new Q3 atop the Audi Piazza
Upon the completion of these measures, the customs officers swiftly initiated a penalty process and launched four criminal investigations. The customs office announced that six cases required further scrutiny.
While exact financial losses aren't precisely specified, reports indicate that the damage hit approximately 766 million Euros in 2024[2]. The Financial Control Black Work (FKS) plays a pivotal role in quashing shadow work and illegal employment. They boast extensive powers, supported by the Black Work Suppression Act (SchwarzArbG). Regular audits across industries, particularly in labor-intensive sectors such as construction[2], are a common strategy employed by the FKS.
In Swabia, specific details on ongoing FKS initiatives in the construction sector remain scant. However, the essential aspects of their work encompass:
- Persistent Check-ups: The FKS conducts approximately 25,000 employer audits annually to ensure compliance with legal requirements[2].
- Investigative Procedures: They launch numerous investigations to combat wrongdoing such as shadow work[2].
- Cooperation with Other Authorities: The FKS collaborates closely with other authorities to ensure a comprehensive crackdown on shadow work.
Despite these efforts, shadow work remains a substantial issue that demands ongoing attention.
[2] Source: [Link Removed for Privacy]
The Financial Control Black Work (FKS) is primarily targeting industries prone to labor-intensive jobs like the construction sector, aiming to eliminate shadow work and illegal employment. The extensive powers granted to the FKS through the Black Work Suppression Act (SchwarzArbG) support their audits and investigations, which include numerous checks on employers and collaboration with other authorities to maintain compliance with legal regulations in finance, business, and manufacturing.
