Chamber of Labor Demands Stricter Measures Against Social Fraud in Companies

As part of the planned measures to combat fraud, the Chamber of Labor (AK) is now also increasing pressure on the federal government. After the Chamber of Commerce recently called for stricter controls on sick leave, the AK is introducing additional proposals against social fraud – particularly against companies that underpay employees or employ them off the books.

Specifically, the AK is demanding, among other things, that clients be held liable for wages and social security contributions, higher penalties for wage and social dumping, and more controls by the financial police. Protection against bogus self-employment should also be improved, and the expiration of claims during an ongoing employment relationship should be prevented.

Five-Year Professional Ban for Managers in Case of Violations

Another proposal is particularly drastic: Managers who have repeatedly been fined for wage and social dumping or violations of the Foreign Employment Act should no longer be allowed to practice their profession for five years. The same applies to those who have been responsible for multiple bankruptcies.

The AK refers to specific cases from its fraud prevention department. For example, a construction company is said to have continued under a slightly altered name with the same responsible parties after a bankruptcy. In another case, employees of a real estate company were reportedly repeatedly transferred between different companies – apparently to avoid salary payments.

Government Focuses on Tax Fraud – Law Planned

The government program has so far focused on tax fraud. Finance Minister Markus Marterbauer (SPÖ) has already had an expert commission develop proposals. These include, among other things, the abolition of the input tax deduction for luxury real estate and the possibility of accessing the account register in investigations against shell companies.

According to the ministry, a corresponding draft law was sent to the coalition partners ÖVP and NEOS last Friday. The legislative amendment is to be passed within the current year.

(APA/Red)

This article has been automatically translated, read the original article here.