Social dumping report – 1,600 checks, fines of €4 million imposed

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Last year, more than 1,808 criminal charges were filed under the wage and social dumping law in about 1,600 checks across Austria. For example, there were suspicions of underpayment, undeclared work and abuse of short-time working. “This is of course a big disadvantage for those affected, but also for all companies and it disrupts fair competition,” Labor Minister Martin Kocher (ÖVP) said Monday.

In 2021, 1,590 companies were audited. The financial police imposed 1,808 criminal complaints and fines amounting to 3.9 million euros. Compared to 2020, there were fewer checks, but the problem should not have gotten smaller, said financial police chief Wilfried Lehner. For example, the financial police checks whether employees are underpaid and whether companies are complying with social security rules.

Focus on foreign workers
“The Law to Combat Wages and Social Dumping is an important tool to protect the domestic economy from companies operating illegally in Austria,” said Finance Minister Magnus Brunner (ÖVP). This is also registered by the financial police. In the past year, more than 3,000 employees who were posted or lent from abroad were checked. There was a suspicion of underpayment at 385 companies. In the future, the construction and construction-related crafts, transport and parcel service providers and the food trade will be monitored more closely. In addition, checks are planned that depend on events and risk analyses.

Lehner said not everything could be made clear at this point as new types of fraud were constantly being added. Since April, 14,000 companies have been checked for short-time working. 1,160 violations were identified, mainly undeclared work and fraud. This year again (243) companies were reported for the improper use of short-time working.

Source: Krone

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