Company Fined €51,150 for Misclassifying Workers, Evading €165k in Social Security
A company from the Cham district has been convicted for misclassifying workers and withholding social security contributions. The owner was sentenced to a fine of 51,150 euros.
The company employed three installers as self-employed individuals from 2016 to 2021, but they worked like regular employees. The wages of these installers, totalling nearly 1.5 million euros, should have been reported to the social security office. However, the company failed to do so, leading to a savings of around 165,000 euros in social security contributions over several years. The Regensburg Local Court found the owner guilty of withholding and misappropriation of wages.
The owner is now obliged to pay the withheld social security contributions and the court costs. The case was investigated by the financial control against illicit work at the Regensburg main customs office, resulting in a fine of 100 daily rates of 60 euros each.
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