License

Fine proceedings

In recent years, fine proceedings have become increasingly important. Since denial of the license is often not proportionate, the Federal Employment Agency (Bundesagentur für Arbeit) has started to impose fines for violation of the German Law on Temporary Employment (AÜG, Arbeitnehmerüberlassungsgesetz).

The fines are sometimes quite high. The fine for failure to correctly apply the collective agreements can be as high as €500,000 (see sec. 16 (1) no. 7a in conjunction with sec. 10 (4), sec. 16 (2) AÜG).

The list below shows several offences subject to fine (pursuant to sec. 16 (1) AÜG). This applies to every person who, intentionally or through negligence,

 

Sec.  16 (1) no. Offence Fine in EUR
1 assigns a temporary employee to a third party without a licence in violation of sec. 1 30,000
1a allows a temporary employee received from a temporary employment agency without a license to work for them 30,000
1b assigns a temporary employee or allows a temporary employee to work in violation of sec. 1 (1) sentence 3 30,000
1c fails to identify an assignment of a temporary employee at all, correctly or in time in violation of sec. 1 (1) sentence 5 30,000
1d fails to concretise the person at all, correctly or in time in violation of sec. 1 (1) sentence 6 30,000
1e assigns a temporary employee in violation of sec. 1 (1b) sentence 1 30,000
1f assigns a temporary employee or allows a temporary employee to work in violation of sec. 1b sentence 1 30,000
2 allows a foreign temporary employee assigned to him to work if such employee does not have the required residence title pursuant to sec. 4 (3) of the  Act on the Residence, Economic Activity and Integration of Foreigners in the Federal Territory (AufenthG, Gesetz über den Aufenthalt, die Erwerbstätigkeit und die Integration von Ausländern im Bundesgebiet), permission to remain or temporary suspension of deportation (Duldung) or a permit pursuant to sec. 284 (3) of the Third Book of the Code of Social Law (SGB III, Sozialgesetzbuch (SGB) Drittes Buch (III)) 500,000
2a fails to submit notification pursuant to sec. 1a at all, correctly or in time 2500
3 fails to comply with a requirement pursuant to sec. 2 (2) at all, correctly or in time 2500
4 fails to submit notification pursuant to sec. 7 (1) at all, correctly, completely or in time 1000
5 fails to provide information pursuant to sec. 7 (2) sentence 1 at all, correctly, completely or in time 1000
6 fails to fulfil their record-keeping obligation pursuant to sec. 7 (2) sentence 4 30,000
6a fails to accept a measure as contemplated in sec. 7 (3) sentence 2 in violation thereof 1000
7a fails to provide a working condition in violation of sec. 8 (1) sentence 1 or (2) sentence 2 or 4 500,000
7b fails, in violation of sec. 8 (5) in conjunction with a legislative act pursuant to sec. 3a (2) sentence 1, to pay the minimum hourly wage as provided for therein at all or in time 500,000
8 fails to fulfil an obligation pursuant to sec. 11 (1) or (2) 1000
8a allows a temporary employee to work in violation of sec. 11 (5) sentence 1 500,000
9 fails to inform the temporary employee at all, correctly or completely in violation of sec. 13a sentence 1 2500
10 fails to grant access in violation of sec. 13b sentence 1 2500
11 fails to tolerate an audit or to co-operate during such audit in violation of sec. 17a in conjunction with sec. 5 (1) sentence 1 of the Act to Combat Clandestine Employment (SchwarzArbG, Gesetz zur Bekämpfung der Schwarzarbeit und illegalen Beschäftigung) 30,000
12 fails to grant access to a property or business premises in violation of sec. 17a in conjunction with sec. 5 (1) sentence 2 SchwarzArbG 30,000
13 fails to transfer data at all, correctly, completely, in the required manner or in time in violation of sec. 17a in conjunction with sec. 5 (3) sentence 1 SchwarzArbG 30,000
14 fails to submit registration at all, correctly, completely, in the required manner or in time in violation of sec. 17b (1) sentence 1 AÜG 30,000
15 fails to submit a change report at all, correctly, completely, in the required manner or in time in violation of sec. 17b (1) sentence 2 AÜG 30,000
16 fails to attach a declaration in violation of sec. 17b (2) AÜG 30,000
17 fails to prepare a record at all, correctly, completely or in time in violation of sec. 17c (1) AÜG or fails to archive such record for a minimum period of two years or 30,000
18 fails to make a document available at all, correctly, completely or in the required manner in violation of sec. 17c (2) AÜG 30,000

 

 

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