Customs Uncovered Unauthorised Labour Supply
The Lörrach Main Customs Office investigated a transport company operating near Freiburg in the German state of Baden-Württemberg. Officers from the Financial Control of Undeclared Work unit found that the company had engaged 40 foreign drivers as temporary agency workers without the required authorisation.
According to the official statement from German Customs, the drivers were formally employed by two affiliated Lithuanian haulage companies. In practice, however, they were fully integrated into the German operator’s business and worked exclusively under its instructions.
The German Company Paid for Each Driver
The German customer transferred an agreed amount to the Lithuanian companies for every driver supplied. Those payments were used to cover wages and social security contributions payable in Lithuania.
This arrangement required authorisation from Germany’s Federal Employment Agency for the supply of temporary workers. The managing director of the two Lithuanian companies was aware of the requirement, but the necessary permit had not been obtained.
Contracts for Work Concealed the Actual Arrangement
The business relationship was presented as a series of contracts for work. This structure was intended to suggest that the Lithuanian drivers were performing an independent service and had not become part of the German company’s operational organisation.
Customs investigators found that the reality was different. The drivers were integrated into the German haulier’s operations and followed its direct instructions. Authorities therefore treated the arrangement as the unauthorised supply of temporary workers rather than the independent performance of contracted services.
Total Penalties Reached €35,000
The Lörrach Main Customs Office, which is authorised to impose penalties for the relevant administrative offences, issued two fines:
- €20,000 against the managing director of the Lithuanian companies;
- €15,000 against the German entrepreneur who used the drivers.
The combined penalties therefore reached €35,000. Both decisions have become legally binding.
The case demonstrates that international transport companies cannot rely solely on the wording of commercial agreements. German authorities may examine how drivers actually work, who gives them instructions and whether they are integrated into the customer’s organisation. If those conditions indicate temporary agency work, a separate authorisation may be required.
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