Blackwork work in Upper Austrian bakeries: Finance police strikes!

Blackwork work in Upper Austrian bakeries: Finance police strikes!

In Upper Austria, the financial police recently carried out a control campaign in bakeries that specialize in Balkan specialties. Numerous violations of the law were uncovered that indicate a growing problem in the catering and bakery industry. During the investigation, violations of various legal provisions were found, including four violations of the Range employment law, three violations of the General Social Insurance Act, two violations of the trade regulations and four violations of the Working Hours Act. In total, the control affected ten companies and 34 employees, 31 of whom were foreign and three Austrian citizens. In a special case, a 26-year-old Kosovare was placed in handcuffs.

In addition, irregularities in the cash management and the document exhibition were found. The possible fines for those affected are between 2,000 and 20,000 euros due to illegal employment. In several cases, applications for commercial deprivation for preliminary bakeries have already been made. On site, the officials received outstanding taxes of 12,866 euros. In this context, Finance Minister Markus Marterbauer emphasized the importance of controls to ensure compliance with the tax laws.

growing problem in the industry

The uncovering of these violations is not just an isolated case. Rather, they represent part of a major problem that has become more important in recent years. According to the Federal Ministry of Finance, undeclared work and illegal employment in almost all economic sectors become problematic, especially in wage -intensive industries such as the hospitality industry. In 2023, around 43,000 employer exams and over 101,000 investigations were initiated due to criminal offenses. The damage resulting from criminal and finance investigations will amount to around 615 million euros.

The financial control undeclared work (FKS) of the customs administration is committed to combating undeclared work with around 8,900 employees. The FKS checks, among other things, compliance with social security reporting and the correctness of the employer's information, especially when it comes to foreign workers without the necessary residence permit or work permit. Organized forms of undeclared work are widespread across Europe and often work conspiratories.

legal framework and consequences

The Black Working Act (SchwarzarbG), which was adjusted in 2019, forms the basis for combating these illegal practices. Employers are obliged to pay social security contributions and wage tax correctly, and violations can result in criminal consequences. Non-EU citizens without a residence permit must also expect strict sanctions.

The importance of this control and the associated measures are also underlined by raising the minimum wage since January 1, 2024, which is now 12.41 euros per hour. Such controls should not only ensure compliance with the regulations, but also promote fairness and justice in the labor market.

The processes in the Upper Austrian bakeries are therefore an impressive example of the previous efforts by the tax authorities to combat undeclared work and illegal employment, which crystallize as a serious problem in society. A comprehensive approach is necessary to remedy the existing grievances and prevent future violations.

Kosmo and Federal Ministry of Finance report on the background and the current situation in the industry.