German customs officials recently conducted a nationwide investigation into the construction industry, targeting undeclared work and illegal employment practices. The operation, carried out across multiple cities, revealed numerous violations.
Nationwide Focus on Illegal Practices in the Construction Sector
On Tuesday, March 10, 2026, German customs launched a large-scale investigation of the construction industry. The primary goal of this operation was to uncover instances of undeclared work – often referred to as “shadow work” – and illegal employment. The operation was organized by the Financial Control of Illegal Work (Finanzkontrolle Schwarzarbeit, or FKS) division of the customs authority and involved coordinated checks at various locations throughout the country.
Inspections in Dortmund and Other Cities
The Dortmund Main Customs Office played a significant role in the operation, deploying a total of 114 personnel. Inspections were conducted in the cities of Dortmund, Gelsenkirchen, Hagen and Siegen. During the operation, a total of 274 individuals were checked, and business records were examined at twelve companies.
Findings of the Investigations
The inspections revealed several potential violations. In 44 cases, possible breaches of minimum wage regulations were identified. Eleven cases raised suspicions of non-payment of social security contributions. Authorities also found evidence suggesting the employment of individuals without valid work permits in nine instances. Three cases indicated potential abuse of benefits by employees.
Objectives of the Focused Investigation
This nationwide investigation is part of the regular control measures carried out by the Financial Control of Illegal Work division of the German customs authority. The aim of these measures is to detect violations and reduce the acceptance of undeclared work and illegal employment within society. It’s important to note that the construction industry is subject to industry-specific minimum wage regulations, while other sectors adhere to the statutory minimum wage, which currently stands at 13.90 euros per hour.
This report originated from presseportal.de and was created with the assistance of AI.
The German government has been increasingly focused on combating undeclared work in recent years, recognizing its detrimental effects on fair competition, worker rights, and public finances. The construction sector, with its reliance on temporary labor and often complex subcontracting arrangements, is particularly vulnerable to these practices. This latest operation underscores the commitment of customs authorities to enforce labor laws and ensure a level playing field for businesses.
The FKS division utilizes a variety of methods to detect illegal employment, including on-site inspections, analysis of financial records, and cross-checking of data with other government agencies. They also rely on tips from the public, which can be submitted anonymously. The penalties for violating labor laws can be substantial, ranging from fines to criminal prosecution.
Beyond the immediate financial implications, undeclared work also poses risks to worker safety and health. Employees who are not officially registered may not be covered by social security or workers’ compensation insurance, leaving them vulnerable in the event of an accident or illness. The German government emphasizes the importance of protecting workers’ rights and ensuring safe working conditions for all.
The results of this investigation will be analyzed further to identify trends and patterns of illegal activity. This information will be used to refine future enforcement efforts and target resources more effectively. The customs authority plans to continue conducting regular inspections and working with other agencies to combat undeclared work in the construction industry and other sectors.
The focus on social security contributions is particularly important, as unpaid contributions can strain the German social security system, which provides benefits to retirees, the unemployed, and those in need of healthcare. Ensuring that all employers fulfill their obligations to contribute to the system is crucial for maintaining its long-term sustainability.
The investigation also highlights the challenges of enforcing labor laws in a globalized economy, where companies may be tempted to cut costs by employing undocumented workers or paying below-minimum wages. The German government is working with international partners to address these challenges and promote fair labor practices worldwide.
Looking ahead, the German customs authority will likely continue to prioritize the fight against undeclared work and illegal employment. The ongoing operation in the construction industry serves as a clear signal that authorities are taking these issues seriously and are committed to protecting the rights of workers and ensuring fair competition.
The next step in this process will be the formal assessment of the findings and the initiation of any necessary legal proceedings against those found to be in violation of the law. The customs authority has not yet announced a timeline for these actions, but it is expected that they will be taken in the coming weeks and months.
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