The German government is tightening checks on social benefits and targeting sham contracts, employers and organized fraud

The German federal government has approved a ten-point plan to combat abuse involving social benefits, with measures expected to be implemented by the end of the year. The changes also target Romanians receiving financial support in Germany and aim to enforce stricter checks on eligibility for public funds.

The plan, drawn up by Labor Minister Bärbel Bas and Interior Minister Alexander Dobrindt, provides for faster information sharing between institutions, automated notifications and the strengthening of structures investigating organized fraud. Authorities will more closely examine sham contracts, undeclared work, incorrectly reported wages and substandard housing where vulnerable people are concentrated.

Employers who falsely report their employees’ activity and cause unwarranted benefits to be paid could be required to repay the resulting damage. The government also wants to suspend certain benefits for people with final convictions who evade serving their sentences.

The measures also focus on the intermediaries behind the schemes, not just the final beneficiaries. At the same time, authorities promise protection for victims of human trafficking and labor exploitation. Germany intends to provide information and counseling as early as in countries of origin to prevent recruitment through false promises.