Fragmented control of minimum working conditions in Germany

Goal and task

State controls on compliance with the minimum wage have been criticised since its introduction. For years, various studies have shown a large number of systematic violations of the statutory minimum wage and sectoral minimum wages.

Strategic and structural problems are evident at the responsible Financial Control of Undeclared Work (Finanzkontrolle Schwarzarbeit, FKS) of the customs authorities, which make effective control strategies difficult. Criticism is mostly directed at an insufficient number of controls with the demand for a significant increase in staff at the FKS. However, the problems are also related to the strategic orientation of the FKS, which is usually less critically questioned. This includes, for example, the selection of companies to be controlled or the lack of supra-regional assessments of the situation.

However, the deficits do not lie only in the organisation and strategy development of customs, but also in framework conditions that make effective controls more difficult. One example is the current obligation to record working hours, which must be reconstructed laboriously for each control. Finally, there is an increased effort due to the large number of authorities that are also involved in control activities. These include public prosecutors' offices, tax offices, tax investigation offices, the German pension insurance or the offices for occupational health and safety at the federal state level.

The planned research project will focus on the empirical investigation of the fragmented system for the legal control of minimum working conditions (minimum wages, working hours) in Germany. The focus will be on the Financial Control of Undeclared Work (Finanzkontrolle Schwarzarbeit), taking into account cooperation with other responsible authorities.

Procedure

Based on available statistics, studies and other sources, an overview analysis of the control system in Germany will first be made. Afterwards, experiences and strategies in the control of minimum working conditions will be examined. Discussions and workshops are planned, especially with experts from the control institutions. Special attention will be paid to the obstacles to improved monitoring and compliance with minimum standards and possible strategies to overcome them. The aim is to examine the control system holistically, to identify the problems and to develop proposals for reform.