To bolster efforts against undeclared work, employees in hair salons, barbershops and nail studios will now be required to carry photo identification, such as a passport or national identity card, while on the job. This measure ensures verifiable identification during inspections.
The legislative proposal, spearheaded by Finance Minister Lars Klingbeil (SPD), designates the hairdressing and cosmetics sector as a high-risk industry for undeclared work and illegal employment, triggering stricter regulatory measures. This classification places it alongside existing sectors like construction, transportation and the meat processing industry.
Failure to present valid identification may result in fines of up to €5,000 for employees.
According to the rationale behind the “Law for the Modernization and Digitalization of Undeclared Work Combatting” the Special Customs Unit “Financial Control Undeclared Work” (FKS) has observed a disproportionately high prevalence of undeclared work and illegal employment within the hairdressing and cosmetics sector. The legislation underscores that the absence of mandatory identification complicates the identification of individuals encountered during inspections.
Currently, inspectors often encounter only digital images of identity documents on mobile phones or inadequate forms of identification like health insurance cards. This lack of proper verification makes it challenging to detect potentially fraudulent documents.
The legislative changes also mandate that the FKS promptly report any instances of undeclared work to job centers, allowing for potential sanctions if individuals are also receiving social welfare benefits, specifically citizen’s income. This reporting mechanism enables job centers to evaluate the eligibility of benefit recipients and take appropriate actions. The rationale emphasizes the need to react responsibly when the social welfare system is exploited through combined citizen’s income receipt and undeclared work. The draft legislation is scheduled for approval by the Federal Cabinet next Wednesday.
