Company Fined €51K for Misclassifying Employees as Self-Employed
A company in the Cham district has been exposed for misclassifying employees as self-employed, leading to a significant fine and wage recovery. The Main Customs Office Regensburg's Financial Control Black Work department and the Kontrolleinheit Verkehrswege (KEV) played crucial roles in uncovering the case.
From 2016 to 2021, the company employed three installers, treating them as regular staff despite claiming they were self-employed. This pseudo-self-employment scheme allowed the company to avoid paying social security contributions, totaling around 165,000 euros over several years. The unpaid wages amounted to nearly 1.5 million euros.
The Regensburg Local Court found the company owner guilty of withholding and misappropriating wages. He was fined a total of 51,150 euros and ordered to pay the withheld social security contributions and court costs. The case underscores the importance of maintaining a fair labor market and preventing such practices.
The company's misclassification of employees as self-employed has resulted in severe penalties. The case serves as a reminder that such practices are illegal and will not be tolerated. The Main Customs Office Regensburg and KEV continue to work together to protect workers' rights and ensure a fair labor market.
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