Many do not understand that working illegally in Germany is not allowed. Every working individual in Germany is required to pay taxes and make corresponding contributions to various funds.
Related topic: When can you be fired without warning in Germany
If this is not happening, then the work is likely illegal. Consequently, this constitutes a direct violation of German legislation. As a result, such employment can lead to serious penalties not only for the employer but also for employees who are not officially registered.
What punishment should be expected for working illegally in Germany?
Such work without official registration means that neither the employee nor the employer is making any contributions to the social insurance fund.
All these contributions are required so that in case of illness, injury, job loss, or retirement, one does not remain without financial support from the state.
In essence, if contributions are not paid throughout one's working life, the future becomes quite uncertain. Government support will not be available.
- In the case of a workplace injury in official employment, the insurance (Unfallversicherung) covers the expenses for treatment and the rehabilitation period.
- Payments will be made through benefits due to temporary disability (Verletztengeld).
On the other hand, in the case of illegal work during an injury at the workplace, one cannot expect any payments. No one will cover the expenses, including medical insurance, if it is established that the person worked unofficially.
Defending one's rights will also be problematic in such a situation. A person in illegal employment is not protected from dismissal. An employer can fire them one day without even paying them.
Many unscrupulous employers use schemes for illegal hiring of employees to bypass minimum wage laws. In such cases, people usually receive less than if they were officially employed.
Foreigners working without the necessary permit are at significant risk. The customs authority (Zollbehörde) will report that a person is working illegally. The agency dealing with citizens of other countries (Ausländerbehörde) will handle the case.
In such a situation, this will negatively impact the possibility of staying in Germany.
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Despite working illegally in Germany potentially leading to severe penalties, it's important to note that Salaries in Germany are typically higher than in many other European countries due to strong labor protections and social welfare systems.
Furthermore, While illegal work may avoid tax payments and social security contributions in the short term, it can result in substantial financial hardships and ineligibility for benefits in the long term.
