German employer fined €12,600 for evading social security payments

A tip led to the discovery of two unregistered employees—and a hefty fine. How undeclared work undermines fair competition and public funds.

, and Administrator

2025 November 14 . 3:12 PM

1 min read

In this image there is a train on the tracks, to the right of the train there are tracks on the... — In this image there is a train on the tracks, to the right of the train there are tracks on the surface, to the left of the train there are trees, electric poles, cars and buildings, on top of the electric poles there are cables, in front of the train there is a bridge and there is smoke coming out of the train.

A mail-order business owner from the Neckar-Odenwald district has been fined €12,600 by the Mosbach District Court for employing two Polish workers without registering them for social security contributions. The penalty order is now legally binding.

Acting on a tip, investigators from the Financial Control Unit for Undeclared Work discovered the unregistered workers. The two Polish employees had been with the company for some time, yet the employer had not paid the required social security contributions, amounting to over €14,000 in total losses for the system.

The court imposed a fine of 180 daily rates at €70 each, totalling €12,600. The owner's identity has not been made public. Employing workers off the books gives businesses an unfair edge over competitors and undermines the social security system.

The Mosbach District Court's ruling sends a strong message against the practice of employing unregistered workers. The €12,600 fine, along with the €14,000 in unpaid contributions, highlights the significant impact of such actions on the system and fair competition.