LIVONIUS Rechtsanwälte has many years of experience in counselling companies and defending employers in the field of so-called labour criminal law.
This primarily includes offences which are connected with the obligations of the employer, i.e. the offence of withholding or misappropriating social security contributions in accordance with Section 266a of the StGB [German Criminal Code] and offences in the fields of undeclared work and illegal employment (violations of AÜG [Temporary Employment Act], AEntG [Law on the Posting of Workers], SGB III [Social Code]) and of standards which serve to protect employment and employees, protect works councils as well those which serve employee data protection. Misconduct with regard to social insurance, undeclared work and illegal employment regularly go hand in hand with fiscal violations (evasion of income tax and VAT).
Particularly affected are sectors where collective bargaining and strict regulations on the minimum wage and the granting of minimum work conditions apply (e.g. companies in the construction-related trades, building cleaning, the care sector, etc.), as well as companies involved in human resource management planning.
In practice, an increase of investigations on suspicion of so-called pseudo self-employment and for craft or trade law violations can be seen (Section 8 of the SchwarzArbG [Law against Illegal Employment], Sections 117, 118 of the HwO [Crafts and Trade Code]).
Misconduct in connection with legal form and other violations of employer obligations may give rise to sensitive criminal penalties and/or fines. What are not to be underestimated are non-criminal consequences (registration in the Commercial Register, in the State Corruption Register, barring from tender awards, personal liability of directors for withholding social security contributions, etc.).