Company Owner Fined €51,150 for Wage Theft and Social Security Fraud
The Regensburg Local Court has sentenced a company owner from the Cham district to a total fine of 51,150 euros. The owner was charged with withholding and misappropriation of wages, along with failing to report installers' salaries to the social security office, saving around 165,000 euros in contributions.
The company, a metal systems business, employed three installers as self-employed individuals from 2016 to 2021. However, these workers were treated like regular employees, with the company pocketing approximately 1.5 million euros in unpaid wages. The owner's actions were uncovered by Wolfgang Braun, an investigator from the Financial Control Black Work department, who stressed the importance of exposing such pseudo-self-employment cases to maintain fairness in the labor market.
The Regensburg Public Prosecutor's Office pursued the case, leading to the court's ruling. The owner was ordered to pay the withheld social security contributions and court costs, in addition to the fine.
The company owner's actions have been brought to justice, with a significant fine and the requirement to pay back the withheld social security contributions. This sends a clear message that such practices will not be tolerated, and efforts to uncover pseudo-self-employment cases will continue to protect workers' rights.
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