, Vienna Blümel and Aschbacher to join forces against social fraud on the labour market

At a joint press conference today, Finance Minister Gernot Blümel and Labour Minister Christine Aschbacher presented measures to combat social fraud on the Austrian labour market.

In future, increased cooperation and specific priority definition for controls will help to identify “black sheep”. Finance Minister Gernot Blümel and Labour Minister Christine Aschbacher presented the priorities for the first half of 2020 at today’s press conference. “I have the utmost respect for the companies in Austria that do great things, comply with the rules, and pay taxes. So it is unfair if others, especially large international corporations, do not abide by these rules,” said Finance Minister Gernot Blümel.

One of the priorities of the work of the Financial Police is the fight against wage and social dumping, especially where it comes to foreign workers. In 2019, a total of 238,850 persons were posted or seconded to Austria via foreign companies; in 2011, the number was 9,127. Penalties imposed due to wage and social dumping amounted to € 13.8 million in 2019, a total of € 35 million since 2011.

“We want fairness and fiscal justice in Austria, and we expect existing rules to be complied with by everyone. This also applies to large international corporations and employees from abroad. We will tighten our controls and go more against the big and less against the small. Entrepreneurial responsibility must not end at the shipping department,” said Finance Minister Gernot Blümel.

Wage and social dumping and tax evasion are not peccadilloes but damage the business location. In order to be more effective, the Ministry of Finance and the Ministry of Labour have agreed to strengthen their cooperation. At today’s press conference, Labour Minister Aschbacher furthermore announced a review/evaluation of the Austrian Social Fraud Prevention Act (SBBG) by autumn 2020 and changes to the Austrian Wage and Social Dumping Act on the basis of the relevant European Court of Justice decision, especially with regard to the penal provisions.

“For me as Labour Minister, the aim is to use all my strength to protect employees and workers from wage and social dumping. We will not tolerate that those companies that work in accordance with the law and provide fair wages end up duped,” explained Labour Minister Christine Aschbacher.

As one of the first measures, the two ministers will set three priorities for controls by the Financial Police in the first half of 2020 in the audit and control plan, which regulates the type and number of controls for wage and social dumping:

  • Focus on large companies
  • More operating days in border areas (Lower Austria, Burgenland, Styria, Carinthia)
  • Quota for priority checks on specific events, sectors and seasons
  • Photos