Nail salon owner convicted for evading social security payments in 48 cases
A nail salon owner in Regensburg has been convicted for social insurance fraud. The owner, who remained unnamed, was found guilty of not properly registering several employees with social insurance between 2015 and 2017, in a total of 48 cases.
The investigation began following an anonymous tip. It revealed that the owner had been operating the salon with fewer staff than officially stated, and some employees were not registered for social security. The owner attempted to conceal this by claiming that staff were engaged in training or further education programs.
The Financial Control of Undeclared Work (FKS) regularly monitors nail and beauty salons due to their high risk of violating social security obligations or minimum wage laws. The FKS targets businesses based on risk assessment, focusing on those where anonymous tips, prior experience, or suspicious business structures raise concerns.
The owner received an eight-month suspended prison sentence and must pay approximately €110,000 in evaded social security contributions and court costs. René Matschke, head of the Regensburg Customs Office, warned that 'undeclared work cannot be hidden indefinitely' and those who attempt to evade social security contributions will face consequences. The FKS will continue to target operators in sectors with high risk of undeclared work, including security services and personal care services.
