Hairdressing and beauty salons were recently included in the law against undeclared work. This means stricter regulations apply to these trades, such as the immediate registration of employees with the pension insurance provider and the requirement to carry identification. (Photo: © parilovv/123RF.com)
Read aloud:
Undeclared work: How the Chamber of Skilled Crafts recognizes violations, what steps it can take itself – and when it has to pass cases on to the authorities.
"He's obviously working illegally – why isn't anything being done about it?" Chambers of Skilled Crafts regularly receive complaints like these. The frustration of many legally registered businesses is understandable to chamber staff. But what appears to be inaction is actually the result of clearly defined responsibilities, the chamber emphasizes. Chamber of Crafts Constance. In combating undeclared work in the sense of unauthorized practice of a craft, the chambers of crafts are subject to strict legal limits.
A key misconception concerns the very term "undeclared work." It is often understood to mean the employment of unregistered workers. According to the Crafts and Trades Code, however, this does not apply. Undeclared work in the sense of trade law However, this occurs when someone practices a craft requiring a license without being registered in the trade register – even though this is legally required.
➡️Undeclared work has many facets, which are: read here.
Based on Business registrationsThe chambers of commerce check the applications submitted by the trade offices to determine whether the stated activity is a craft and whether registration in the [Chamber of Commerce] is required. Craft role This is required. If the situation is clear, the businesses will be contacted and asked to register. "Many people think of undeclared work first and foremost as unregistered employees. However, for us, the focus is on the registration requirement under the Crafts and Trades Code," explains [name/title of person explaining]. Julia Scholtes, lawyer and head of the trade register at the Chamber of Skilled Crafts Konstanz.
Operations management
Operations management
Operations management
Registration is subject to clear requirements: The owner or a designated manager must hold a master craftsman's certificate or another recognized qualification. If registration fails to occur despite repeated requests, or if the required documents are not submitted, the Chamber of Skilled Crafts can impose a fine in accordance with Section 112 of the Skilled Crafts Code.
However, this is where the direct powers of the Chamber of Skilled Crafts end. The responsibility for prosecuting administrative offenses – such as operating without registration – lies legally with the lower administrative authorities, i.e., the municipalities.
In such cases, the Chamber of Skilled Crafts informs the relevant regulatory authorities and transmits substantiated suspicions and relevant information. Further investigation is then carried out by the authorities, often jointly with the police and public order service.
If it is determined that a craft is being practiced without registration, fines of up to 10.000 euros can be imposed.
Also a so-called Prohibition of trade pursuant to Section 16 Paragraph 3 of the Crafts Code This is possible. The major district towns and the district offices are responsible for this. "As soon as we have forwarded a well-founded suspicion to the responsible authority, the procedural authority lies with them," says Scholtes. "The authority decides on further steps and measures such as fines or business closures."
From the Chamber of Skilled Crafts' perspective, this situation is particularly frustrating – not least in the interest of legally operating businesses. There's a good reason why many unregistered companies don't meet the requirements: acquiring master craftsman qualifications costs time and money – just like the ongoing obligations of a registered business.
"Registered businesses invest heavily – for example, in qualifications, managers, and chamber fees – and then have to compete with providers who circumvent these requirements. That's simply unfair," emphasizes Julia Scholtes. Reports of violations are particularly frequent in barbershops, but also in auto repair shops and plastering businesses. These trades often lack the necessary registration requirements.
It is important to distinguish this from other forms of undeclared work: Unregistered employees or untaxed income do not fall under the purview of the Chamber of Skilled Crafts. "That is clearly a matter for customs," Scholtes clarifies. A positive signal comes from the legislature: Hairdressing and beauty salons were recently included in the... Act to Combat Undeclared Employment included. This means that stricter regulations apply to these trades, such as the immediate reporting of employees to the pension insurance and an identification requirement.
"We hope that this will enable customs to take even better action against undeclared work in the skilled trades," says Scholtes.
Despite their limited powers, the Chambers of Skilled Crafts and Trades prioritize cooperation. They maintain close contact with public order offices, trade offices, district offices, and the police. Joint information days and exchanges of experience are held annually, including with the Chambers of Industry and Commerce (IHK) in their respective regions. "All participating agencies are interested in raising awareness and are willing to take action against undeclared work," emphasizes Julia Scholtes.
At the same time, she would like to see more consistency: "Taking a bold approach with fines or business closures would make it less attractive to disregard the rules." However, proceedings often take a long time, so for some providers it is still financially worthwhile to operate without registration. In these cases, the chambers of skilled crafts can only provide guidance and inform the relevant authorities.
The trade register The Register of Craftsmen is the official directory of all craft businesses requiring a license within the chamber's jurisdiction. It ensures that only professionally qualified companies are permitted to practice specific trades. Owners or designated managers must comply with the registration requirement; otherwise, they face fines. In this way, the Register of Craftsmen ensures fair competition and high-quality craftsmanship.
Guest article by Jana Seifried, HWK Konstanz
Anyone who performs undeclared work on the basis of a service or work
Violations can result in fines of up to €50.000 for both the illegal workers and their clients. In addition, any profits generated can be confiscated.
Source: Chamber of Crafts Düsseldorf
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