Company Fined for Illegally Classifying Employees as Self-Employed
A company in the Cham district has been found guilty of falsely classifying employees as self-employed. The Regensburg Local Court has sentenced the company owner to a substantial fine and ordered the payment of withheld social security contributions and court costs.
The case came to light after an investigation by the Financial Control Black Work of the Main Customs Office Regensburg. Between 2016 and 2021, the company employed three installers, treating them as self-employed contractors despite them working like regular employees. This practice allowed the company to avoid reporting their wages, totaling nearly 1.5 million euros, to the social security office. The company saved around 165,000 euros in social security contributions over the years.
The Regensburg Public Prosecutor's Office charged the company owner with withholding and misappropriation of wages. The court found the owner guilty and imposed a total fine of 51,150 euros.
The court's decision sends a clear message that such practices will not be tolerated. The company owner must now pay the withheld social security contributions and court costs, in addition to the fine. The case serves as a reminder for businesses to adhere to employment laws and social security regulations.
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