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Undeclared work; information on combating it
Undeclared work distorts competition, jeopardizes the existence of small and medium-sized enterprises and destroys jobs. The public purse suffers considerable losses in taxes and social security contributions.
Responsible for you
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Procedure details
Description
The term "undeclared work" is regulated in Section 1 (2) and (4) of the Act to Combat Clandestine Employment (SchwarzArbG).
As a rule, this is understood to mean the provision of services or work
- in violation of tax law,
- in violation of social security law,
- by circumventing the obligation to notify social security institutions and/or
- without a business registration or entry in the register of craftsmen, although a trade or craft requiring a license is exercised.
Undeclared work also exists if the provision of a service or work is faked and social benefits are wrongfully received as a result.
There is a separate definition of illegal employment in Section 1 (3) SchwarzArbG.
Undeclared work and illegal employment can have consequences under civil law, criminal law or public law (in particular administrative law). Section 3 of the SchwarzArbG contains special provisions on fines and penalties.
The Federal Customs Administration is responsible for combating illegal employment. It is supported by various authorities, including the district administrative authorities. These can, for example, initiate fine proceedings against undeclared workers and their clients or inspect companies where undeclared work is suspected in cooperation with the main customs office.
Related issues
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Trade register; application for registration
Registration in the Register of Craftsmen is required for the independent operation of a craft requiring a license as a standing trade. Proof of professional qualification is a prerequisite for entry in the Register of Craftsmen.
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Register employees for social insurance
As an employer, you are obliged to register your employees with social insurance.
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List of trades not requiring a license or similar trades; application for information
You can apply for information from the register on the owner of a business in a craft that does not require a license or a trade similar to a craft.
Status: 08.01.2025
Editorial responsibility Bayerisches Staatsministerium für Wirtschaft, Landesentwicklung und Energie
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