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Illegal work in the construction industry: Customs checks 260 workers in Saxony
Financial control of undeclared work examines construction sites in northern Saxony: 100 customs officers discovered numerous violations of minimum wage laws.
Illegal work in the construction industry: Customs checks 260 workers in Saxony
On June 16, 2025, the financial control of undeclared work at the main customs office in Dresden carried out a comprehensive audit in the construction industry that was nationwide and risk-oriented. Over 100 customs officers were deployed during this campaign, checking a total of eight construction sites in Dresden, Leipzig and eastern and northern Saxony. They met more than 260 employees from 60 different companies. The investigators found suspicious circumstances in 65 cases that will result in further investigation, including minimum wage violations and illegal employment of foreigners. Heike Wilsdorf, press spokeswoman for financial control, explained that construction and secondary industries in particular are often the focus of investigations because they are particularly affected by undeclared work. Employers, regardless of whether they are based at home or abroad, must comply with German minimum wage regulations. The minimum wage is currently 12.82 euros gross per hour, which has been in effect since January 1, 2025; previously it was 9.35 euros.
The problem of undeclared work is not a new issue in Germany. According to the Federal Ministry of Finance, damage caused by undeclared work amounting to around 766 million euros was determined in 2024. Almost 97,000 investigations were initiated in around 25,000 employer audits. In total, prison sentences of 1,277 years were imposed. It is clear to see that undeclared work and illegal employment affect almost all sectors of the economy, but particularly wage-intensive sectors. The Act to Combat Undeclared Work (SchwarzArbG) forms the legal basis for combating undeclared work and was reformed in 2019 in order to expand the auditing powers of financial controls.
Background and developments
Since the introduction of a nationwide minimum wage in Germany on January 1, 2015, public discussion has often focused on the impact of this measure on employment and wages. The minimum wage was gradually increased from initially 8.50 euros to 9.35 euros. However, recent studies show that there is little reliable information on the connection between minimum wage, undeclared work and illegal employment. A study that analyzed various wage-intensive industries, including hospitality and the meat industry, found that the structural characteristics of each industry and the motivations of those involved are more important than the minimum wage itself.
Undeclared work remains a complex issue. While financial control continues to try to enforce the regulations, organized undeclared work is active across Europe. Combating such forms of illegal employment is proving challenging, particularly due to chain fraud that uses complex criminal structures to finance undeclared wages and corruption. It is all the more important that employees and employers take the applicable regulations seriously and comply with them.
The current audits once again confirm how crucial it is to ensure fair working conditions and protect the rights of all employees. This is the only way to ensure that the labor market remains transparent and fair for everyone involved.