Company Owner Fined €51,150 for €1.5M Wage Fraud Scheme
The Main Customs Office Regensburg's Financial Control Black Work unit has exposed a significant case of wage fraud. A company from the Cham district was found to have employed three installers as alleged self-employed individuals from 2016 to 2021, saving around €165,000 in social security contributions over several years.
The company, owned by an entrepreneur convicted by the Landgericht Regensburg, exploited the installers by not reporting their wages. This resulted in a total of almost €1.5 million in unpaid contributions. The court sentenced the owner to a fine of €51,150 and ordered him to pay the withheld contributions and court costs.
The Main Customs Office emphasized the importance of preventing pseudo-self-employment to maintain fairness in the labor market. They highlighted that such practices undermine the rights of workers and the integrity of the social security system.
The court's decision sends a clear message that wage fraud and misuse of self-employment status will not be tolerated. The company owner's conviction and the ordered payments ensure that the installers receive the social security contributions they are entitled to, and the company is held accountable for its actions.
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