Germany to Crack Down on Worker Exploitation

Germany is preparing measures to combat the exploitation of foreign workers, organized fraud and misuse of social benefits, while seeking to uphold the principle of free movement within the European Union, Labor Minister Bärbel Bas said on Wednesday.

She said the ability of EU citizens to work in other member states with minimal red tape is important for Germany, which needs skilled foreign workers to address its labor shortage. However, some people exploit these rules to take advantage of vulnerable workers and commit organized fraud.

The measures were developed following consultations with local governments, which had raised concerns about these problems. Authorities are to exchange data more effectively, close legal loopholes and strengthen coordination.

Municipalities will gain broader powers to act against substandard properties, often linked to overcrowded or unsanitary housing for migrant workers. The federal employment agency will be granted greater authority to hold employers accountable for exploiting undeclared labor. Payment of basic social benefits will be suspended for individuals against whom an enforceable arrest warrant has been issued.

(Reuters, bak)