Businessman Fined for Withholding Wages, Misclassifying Workers
A 52-year-old businessman from Landkreis BΓΆrde in the construction industry has been convicted for withholding and misappropriating wages. The defendant admitted the charges in court and was fined a total of 50 daily rates of β¬35. The judgement has been legally binding since December 12, 2024.
An audit revealed that the businessman had employed several 'independent' workers who were actually dependent, socially insured employees, known as sham self-employed. These workers were not registered for social security, leading to a total social security loss of over β¬20,000 over a period of more than twelve months. The managing director of the construction company, Hannes Riedel, was not named in the charges but has expressed regret for the incident.
The businessman was convicted in 19 cases and has accepted the legally binding judgement. The incident has highlighted the importance of proper employee registration and wage management in the construction industry.
