German customs intensify crackdown on illegal work and faulty time‑recording in construction and hospitality

The German Customs Authority’s Financial Control against Illegal Employment (Finanzkontrolle Schwarzarbeit) is stepping up inspections to enforce labour‑law obligations. In the construction sector, a Federal Labor Court ruling now obliges employers to document working hours in real time, keep records GDPR‑compliant, and ensure they can be verified in disputes. Hand‑written timesheets are deemed insufficient, and compliant digital solutions are recommended to avoid penalties.

A recent raid in Straubing, Bavaria, targeted a gastronomy business where customs officers, supported by the local foreign‑resident authority, found multiple breaches: missing work permits for three employees, violations of the statutory minimum wage, failure to record working hours, and non‑compliance with ID‑carrying requirements. The offenders faced administrative offence proceedings and investigations under the Residence Act. The operation underscores the broader effort to eliminate illegal employment and ensure fair competition across German industries.