Overview

• The Schwarzarbeitsbekämpfungsgesetz was approved by the cabinet on August 6 and has now entered the Bundestag legislative process
• The reform equips the Finanzkontrolle Schwarzarbeit with access to police information systems, telecom surveillance and “kleine Staatsanwaltschaft” powers for independent case handling
• Barbershops, hair salons and nail studios are newly classified as high-risk sectors requiring employees to carry ID and employers to report hires immediately to the pension insurer
• An operative digital data-analysis system and enhanced interagency networking are introduced to target organized networks, sub-contractor chains and emerging hotspots
• The government projects roughly €2 billion in additional revenues by 2029 from recovered taxes and contributions, though salon associations warn of excessive bureaucracy for small operators