Germany Tightens Grip on Illegal Employment with New Digitization Law
The German government has approved a bill to modernize and digitize the fight against illegal employment, aiming to combat tax evasion, black work, money laundering, and financial crime. The bill, known as the SchwarzArbG, focuses on improving digital processes and data exchange, but it does not explicitly grant the Finance Control for Illegal Employment (FKS) direct access to the police data network.
The revised law expands powers for telecommunications surveillance and access to electronic records of companies to tackle false invoice fraud more effectively. It also removes forestry and butchery from the catalog of risk branches for black work, as findings show these sectors have not been significantly affected by the issue. Meanwhile, the hairdressing and cosmetics industry will be added to the list of high-risk branches.
The bill seeks to strengthen investigators and expand the competencies of the FKS, with a focus on improving the analysis of collected data. Social Minister Barbara Bas (SPD) highlighted that investigation results will be immediately forwarded to job centers to detect social benefit fraud earlier. Additionally, the FKS will be allowed to participate in the police information network to identify persons staying in Germany without a residence permit more quickly.
The General Association of Agricultural and Forestry Employers (GLFA) welcomed the cabinet draft, with GLFA President Hans-Benno Wichert describing it as an important and correct signal. Federal Finance Minister Lars Klingbeil (SPD) emphasized the government's commitment to combating financial crime and ensuring fair competition for businesses.
Read also:
- Inherent Skills Know No Bounds, Yet Access to Employment Remains Unequal: Suggestions for a More Equitable Job Market of the Future
- Backwell Project Aims to Boost Indonesia Literacy in Australia
- EU Proposes Using Frozen Russian Assets to Fund €140bn Ukraine Loan
- Exploring Physical Recovery after the Overturning of Roe v. Wade Decision
