The consequences of non-compliance

• Employee
• Employer
• Client
• Self-employed

Employee

Administrative offence

A foreigner who works without having the requisite work permit may be fined up to 5,000 euros (see Volume III, Article 404 (2), item 4, of the German Social Code (Sozialgesetzbuch Drittes Buch - SGB III)).

It is illegal to be in employment if the residence title of a third country national does not include the requisite work permit.

Criminal offence

If persistently repeated, the action is punishable (see Section 11(1), item 2b), of the Act to Combat Undeclared Work and Unlawful Employment (Schwarzarbeitsbekämpfungsgesetz - SchwarzArbG)) with imprisonment for up to one year or with a fine.

The action of a national of a third state who stays in Germany on a Schengen Visa and works without a permit is also punishable (see Section 95(1a) of the Residence Act (Aufenthaltsgesetz - AufenthG)) with up to one year’s imprisonment or with a fine.

Employer

Administrative offence

An employer who employs a foreigner illegally can be punished (see Volume III, Article 404(2), item 3, of the German Social Code (Sozialgesetzbuch Drittes Buch - SGB III)) with a fine of up to 500,000 euros.
Every fine imposed in final judgement exceeding 200 euros is entered in the Central Commercial Register.

Criminal offence

Persistent repetition of the action is punishable (see Section 11(1), item 2a), and Section 11(2) of the Act to Combat Undeclared Work and Unlawful Employment (Schwarzarbeitsbekämpfungsgesetz - SchwarzArbG)) with imprisonment of up to three years or with a fine.
The same applies if more than five foreigners are employed illegally (see Section 11(1), item 1, and Section 11(2) of the Act to Combat Undeclared Work and Unlawful Employment).

Imprisonment of up to five years can result if, in addition to the unauthorised employment, significantly poorer working conditions than usual are imposed (see Section 10 of the Act to Combat Undeclared Work and Unlawful Employment).

Client

Administrative offence

Under certain circumstances a client or builder, too, may be fined if a subcontractor has deployed foreign employees who do not hold a work permit. This would be the case where the client has known, or reasonably should known, that the subcontractor

• employs foreigners illegally, or
• for his part employs other subcontractors, or permits the activities of subcontractors who employ foreigners illegally to complete the order (see Volume III, Section 404(1), of the German Social Code (Sozialgesetzbuch Drittes Buch - SGB III)).

Repeatedly ordering a paid service or work from a foreigner who is a third country national, and which the foreigner provides for profit, is also an administrative offence (see Section 98 (2a) of the Residence Act (Aufenthaltsgesetz - AufenthG)).

Every individual case can result in the imposition of a fine of up to 500,000 euros. Every fine imposed in final judgement exceeding 200 euros is entered in the Central Commercial Register.

Self-employed

Administrative offence

A national of a third country who works self-employed without authorisation must expect a fine of up to 5,000 euros (see Section 98(3), item 1, of the Residence Act (Aufenthaltsgesetz - AufenthG)).

Criminal offence

If the third country national’s residence title is only a Schengen visa, working as self-employed constitutes a punishable offence (see Section 95(1a) of the Residence Act) that is punishable with imprisonment of up to one year or with a fine.