Bavarian Security Firm Fined for Systematic Wage Splitting
A security company in southern Bavaria has been exposed for a systematic wage-splitting scheme, dodging social security contributions between 2016 and 2021. The practice involved dividing one employee's overtime and monthly salary among multiple colleagues.
The employee responsible for this practice pleaded guilty at the start of the trial held at the Regensburg District Court. The court sentenced the individual to a fine of 2,400 euros. This case has highlighted the detrimental effects of wage splitting on the social security system and fair competition, as stated by the head of the Regensburg Customs Office, Matschke.
The company's method involved distributing one employee's overtime payments among 16 different colleagues and one month's salary among four people. This manipulation allowed the company to avoid paying social security contributions, giving them an unfair advantage in competition. The Regensburg Public Prosecutor's Office has since filed charges against the employee for aiding and abetting the withholding and misappropriation of wages.
The court's sentencing sends a clear message that such practices will not be tolerated. The company's actions have been exposed, and the employee held accountable. The case serves as a reminder of the importance of fair competition and the integrity of the social security system.
