Company Owner Fined for Misclassifying Employees as Self-Employed
A company owner from the Cham district has been penalised for misclassifying employees as self-employed. The Regensburg Local Court imposed a fine and ordered the repayment of withheld social security contributions and court costs.
Between 2016 and 2021, the company employed three installers, treating them as self-employed individuals to avoid paying social security contributions. However, these workers functioned like regular employees.
This practice allowed the company to save approximately 165,000 euros per year in social security contributions, amounting to nearly 1.5 million euros over the five-year period. The Regensburg Public Prosecutor's Office charged the owner with withholding and misappropriation of wages. The court sentenced the owner to a total fine of 51,150 euros.
Wolfgang Braun, an investigator from the Financial Control Black Work, stressed the significance of exposing such pseudo self-employment cases to maintain fairness in the labour market.
The court's decision sends a clear message that misclassifying employees to evade social security contributions is unacceptable. The company owner must now pay the fine and the withheld contributions, ensuring justice for the affected workers.
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