Less wage and social dumping, but more fines

2023-07-01 09:03:30

The cases of wage and social dumping fell in the previous year – however, compared to 2021, there were almost as many criminal complaints and the fines have increased to around 4.6 million euros. This year, the focus of the controls by the financial police is on the construction industry, the cleaning industry and the tourism sector, said Finance Minister Magnus Brunner and Labor Minister Martin Kocher (both ÖVP) in a broadcast on Saturday.

Wage and social dumping refers to the underpayment of employees and non-compliance with social law provisions. According to the Ministry of Finance, almost 220,000 employees were seconded to Austria in the previous year. A total of 1,153 companies were checked. 266 foreign companies were suspected of being underpaid, which is significantly less than in previous years – in 2020 there were still 435 companies. “The controls are effective, the control pressure must remain high and then the numbers automatically decrease because the companies that have illegal procedures, so to speak, also notice that the controls are in place,” concluded Finance Minister Brunner in the Ö1 “Morgenjournal”.

Although fewer companies were checked, the fines have increased: in the previous year, 1,755 criminal complaints were filed, with fines of around 4.6 million euros being requested. In 2021 it was still 3.9 million euros.

“For this year, the focus of the controls will be on the construction industry, the cleaning industry and the tourism sector, where the majority of companies naturally act in accordance with the law, but there have already been more violations in the past,” explained Labor Minister Kocher in the broadcast. In this way, the employees and the companies that act correctly are protected from wage and social dumping, Kocher assured.

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