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Customs Raid Uncovers Wage, Employment, and Benefit Fraud in Germany's Hotel Industry

Customs inspectors found widespread potential violations in Germany's hotel industry. The thorough checks uncovered suspected minimum wage breaches, illegal foreign worker employment, and benefit fraud.

,   and  Administrator
1 min read
This picture is clicked inside the hotel and in front, we see a table on which white color cloth is...
This picture is clicked inside the hotel and in front, we see a table on which white color cloth is placed. On table, we see plates, fork, spoon, glass, branches of tree. Around the table, we see chairs and behind that we see the other table which is like green in color and behind that, we see a man wearing black blazer. Next to him, we see the girl standing and behind them, we see door on which exit is written on it and behind that door, we see two men standing.

Customs Raid Uncovers Wage, Employment, and Benefit Fraud in Germany's Hotel Industry

The Main Customs Office Stralsund recently conducted inspections across Germany's hotel and catering industry, uncovering potential violations of minimum wage laws, illegal employment of foreign workers, and benefit fraud. The inspections, carried out last Friday, involved 81 deployment forces who conducted 113 interviews and found various irregularities.

The inspections, part of the Tax Investigation Service's (FKS) ongoing efforts to combat undeclared work, focused on compliance with the general minimum wage of €12.82 per hour, social security obligations, and improper receipt of social benefits. In 8 cases, there were indications of minimum wage violations, while 11 cases suspected illegal employment of foreign workers, and 4 cases were flagged for potential benefit fraud. Additionally, evasion of contributions under § 266a StGB was suspected in 11 cases.

The thorough follow-up inspections will involve comparing employee data with wage and financial accounting and checking further business documents. The hotel and catering industry was a particular focus due to its size and regulations under the Minimum Wage Act (MiLoG). Despite one incident where a participant made personal insults and verbal threats towards the deployment forces, the control was carried out successfully.

The inspections, part of the customs office's risk-oriented approach to securing social systems and state revenues, highlight the importance of compliance with labour laws and regulations in the hotel and catering industry. The findings will now be investigated further, with potential penalties for violations.

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