Hanover Customs Discover High Damage Amount in Black Work - Nationwide construction crackdown reveals €16.5M in wage fraud and illegal labor
A nationwide crackdown on the construction sector has exposed widespread wage violations and illegal employment practices. Inspectors uncovered over 40 suspected cases of underpayment, undeclared foreign workers, and unmet social insurance obligations. The findings follow a year of intensified checks by customs authorities.
Customs officers carried out more than 9,500 employee interviews and reviewed nearly 700 employers as part of routine inspections. These efforts led to the closure of over 2,700 criminal cases linked to undeclared work in 2023 alone.
The Financial Control Unit for Undeclared Work in Hanover reported damages of around €16.5 million from illegal employment and social security fraud last year. This figure marks a sharp increase—more than double the €7.2 million recorded in the previous year. Courts issued fines and penalty orders totalling over €1 million, while prison sentences handed down in related cases added up to roughly 26 years. The scale of violations suggests systemic issues within parts of the industry.
The inspections highlight persistent problems with wage compliance and undeclared labour in construction. Authorities have signalled that stricter enforcement will continue, with financial penalties and criminal prosecutions for those found breaking the law. The surge in detected damages underscores the growing cost of such violations to both workers and the state.
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