News - Germany

Germany - December 2013

Netherlands and Germany agree Treaty to Combat illegal Cross-border working

A Treaty came into force on 1st October, 2013 to cement cooperation between the Netherlands and Germany in order to impede cross-border unregistered labour and illegal temporary employment.[1]

The intention is to cooperate more closely in the fields of social security benefits and contributions. The Treaty introduces and extends the information obligations of the relevant authorities in both countries. The authorities are obliged to inform each other about the structure and duties of the controlling authorities. Furthermore, the transfer of any necessary information including personal data and documents will be permitted . The authorities are expected to plan and carry out checks together in order to inform each other about the progress of their activities and to send each other notifications without the need for a formal request.

Commentary

Unregistered work and illicit employment is detrimental to the persons concerned as well as to the relevant country’s finances. Due to its location within Europe, Germany is particularly affected by illegal cross-border working and illicit employment. The Treaty is expected to help to combat social security fraud.

Resources

http://dip21.bundestag.de/dip21/btd/17/120/1712015.pdf

For further information or to discuss any of the issues raised, please contact Stefanie Andrelang (stefanie.andrelang@keller-menz.de) on +49 (0) 89 2422300 at Keller Menz - www.keller-menz.eu.

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[1]The briefing notes to the Treaty distinguish between “black labour” which is defined as “unregistered work” (including permanent work) in Germany and “illicit employment” which refers to illegal cross-border temporary work.