The German coalition government, comprised of the Christian Democratic Union (CDU) and Social Democratic Party (SPD), is poised to expand its legislative efforts to combat undeclared work, a move drawing criticism despite assurances of protecting small and medium-sized enterprises. A revised draft bill, reported by the “Rheinische Post”, will now include platform-based food delivery services alongside existing sectors like barbershops and cosmetics studios, subjecting them to heightened regulatory scrutiny.
The amendment, agreed upon by both governing parties, specifically targets companies utilizing platforms to organize deliveries and subcontractors acting on behalf of these platforms. Inclusion in this designated catalogue triggers mandatory requirements for employees – including the obligation to carry identification – and imposes a “swift notification” duty on employers. Violations will be met with substantial fines.
While CDU rapporteur Anja Karliczek, speaking to the “Rheinische Post”, claims the expansion represents a “meaningful contribution” to suppressing black market labor and shields legitimate businesses from “illegal price dumping” the move is not without its detractors. Critics argue the legislation risks oversimplifying the complex employment models prevalent in the delivery sector, potentially placing undue burden on independent contractors and hindering innovation.
Concerns revolve around the legality of requiring identification from individuals often classified as self-employed and the potential for the swift notification requirement to discourage companies from engaging freelance delivery personnel. Experts suggest the regulations may disproportionately impact smaller platforms, potentially consolidating market share amongst larger, more established players. Beyond the practicalities of enforcement, the legislation amplifies a broader debate surrounding the definition of employment in the gig economy and the government’s role in regulating non-traditional work arrangements. The Bundestag is expected to formally adopt the bill this Thursday, prompting scrutiny of its potential impact on both business and individual livelihoods.
