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Germany cracks down on illegal employment with new digital enforcement tools

From hair salons to tax evasion, Germany’s sweeping reforms aim to expose hidden economies. Will stricter surveillance finally curb exploitation and fraud?

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1 min read
In front of the picture, we see a white car on which "Police" is written. Behind that, there are...
In front of the picture, we see a white car on which "Police" is written. Behind that, there are many cars moving on the road. On either side of the road, we see grass and trees. This picture is clicked outside the city.

Germany cracks down on illegal employment with new digital enforcement tools

The German government has approved a bill to enhance its fight against black work, or illegal employment, with a focus on modernizing and digitizing efforts. The new measures aim to strengthen investigators, improve data analysis, and combat false invoice fraud more efficiently.

The cabinet draft, known as the SchwarzArbG, expands the powers of telecommunications surveillance and access to electronic company records. It also removes forestry and butchery from the catalog of risk branches for black work, as these sectors have shown improved regulation and enforcement. Meanwhile, hairdressing and cosmetics have been added due to increased risks of undeclared work and exploitation.

Social Minister Barbara Bas emphasized that investigation results will be immediately forwarded to job centers. This move aims to detect social benefit fraud earlier. The Financial Control Black Work (FKS) will also participate in the police information network to identify persons staying in Germany without a residence permit, speeding up proceedings.

Federal Finance Minister Lars Klingbeil stated that the goal is to combat not only black work but also tax evasion, money laundering, and financial crime overall. The General Association of Agricultural and Forestry Employers (GLFA) welcomed the cabinet draft, noting that agriculture and forestry have not been affected by an increased risk of black work.

The federal government's bill to modernize and digitize the fight against black work has been adopted. It includes expanded powers for investigators, improved data analysis, and changes to the catalog of risk branches. The goal is to strengthen the fight against illegal employment, detect social benefit fraud earlier, and combat related financial crimes.

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