Stricter controls against undeclared work: What companies can expect.

Customs officials are now authorized to take significantly tougher action against undeclared work. For companies, this could mean more inspections, increased reporting obligations, and stricter digital requirements. An expert explains the legal situation.

This article is part of the special topic Offensive against illegal work

As of January 1, 2026, the new law to modernize the fight against undeclared work (SchwarzArbMoDiG)) entered into force. The Bundestag passed it on November 13th, and the Bundesrat approved it on December 19th. The tariff receives new powers; companies must digital Granting access to documents and databases. Ecovis lawyer Luljeta Krasniqi explains what companies should prepare for.

Customs receives more powers  

Customs is being expanded into the central inspection and investigation authority. In the future, it will be allowed to raid business premises without prior notice. the betret, Documents see and employees questionThe authority can prosecute violations under the new regulations. Sections 14a to 14c of the Act to Combat Undeclared Work (SchwarzArbG) investigate, prosecute and to enforce. Furthermore, the customs administration's own participation in criminal proceedings is planned. This means it now assumes a role that is generally reserved for the public prosecutor's office. 

Hairdressers and beauticians are now in focus, butchers are no longer.

New in the catalog of particularly vulnerable industries § 2a SchwarzArbG are Hairdressing and cosmetics industry as well as platform-based delivery services. Butchery and forestry, on the other hand fallen path. The new sectors are now also subject to the following regulations: Documentation obligations for ID cards.

Employers must continue to remind their employees of their obligations point out, to carry the ID card and present it to the authorities upon request. This instruction should now be explicitly stated already near The authorization must be granted for the provision of the service or work. As before, employees must keep the employer's notification and present it during customs inspections.

Furthermore, the companies concerned must comply with the requirements in  Section 28a Paragraph 1 SGB IV (Fourth Book of the Social Code) mentioned data to social security transmit.

Comprehensive data exchange between authorities

The FKS is now part of the police information network. Information about violations – for example, against the mindestlohngesetz, tax laws or the temporary employment of workers – authorities will have to do this in the future report to each other. The "Operational Information and Data Analysis System" (OIDA) is designed to process large amounts of data, for example from social security institutions or state tax authorities, automatically matched The central office of the customs administration is permitted to access this data every six months and evaluate. 

Businesses must digitize all documents

In the future, companies will have to submit their documents electronically provide them. The authorities can request digital copies and access data in machine-readable format. There are no exceptions. Furthermore, the [retention period] is extended for credit institutions, insurance companies, and securities firms. retention requirements according to the Commercial Code, for ten years.

Higher penalties

The new Section 9 of the Act on Undeclared Work classifies certain administrative offenses Criminal act high. Who false evidence Anyone who displays or uses it commercially risks a fine or imprisonment for up to five years.

Practical tip: What companies should do now

Business owners should therefore check whether internal processes are already sufficiently digital to quickly provide documents electronically. This also includes clearly defining responsibilities for reporting to social security institutions and informing employees about new obligations to carry and submit documents. informierenProcesses that were previously analog – such as payroll documents, deployment plans or proof of receipts – should be implemented promptly. digitize. It is also important to regularly check whether the transmitted data is complete and correct, as the authorities will be comparing it automatically in the future.

"Companies should therefore review and adapt their risk and compliance management early on," advises Ecovis lawyer Luljeta Krasniqi. "The better the processes are documented and digitally organized, the lower the risk of violations."

Source: Ecovis

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