A new legislative initiative proposes stricter identification requirements for employees in hairdressing salons, barbershops and nail studios to combat shadow employment and illegal work practices. The draft law, spearheaded by Finance Minister Lars Klingbeil, aims to enhance the effectiveness of checks and ensure the verifiable identification of individuals during inspections.
Currently, industries such as construction, transportation and meat processing are subject to heightened scrutiny due to their perceived risk of shadow employment. The proposed changes extend these stricter regulations to the hairdressing and cosmetics sector, which authorities have observed to be particularly vulnerable to undeclared work and illegal employment.
Under the proposed legislation, employees in these establishments will be required to carry a passport or identification card while working. Failure to provide such documentation could result in fines of up to €5,000.
The rationale cited by the Finance Ministry stems from observations made by the Zoll-Sondereinheit “Finanzkontrolle Schwarzarbeit” (FKS), a special unit focused on combating shadow employment. Inspectors frequently encounter situations where only mobile phone images or insufficient forms of identification, such as health insurance cards, are presented. Officials highlight the inability to detect potential forgeries under these circumstances.
Furthermore, the proposed law mandates that the FKS promptly report any detected instances of shadow employment to job centers. This reporting mechanism is designed to facilitate potential sanctions in cases where individuals are simultaneously receiving social welfare benefits (Bürgergeld) while engaging in undeclared work. The Ministry emphasizes that it is necessary to respond appropriately when the social security system is exploited through such dual activity.
The draft law is scheduled to be approved by the Federal Cabinet next Wednesday.