(de-news.net) – A 37-point plan to combat worker exploitation, social benefit fraud, and related criminal structures has been presented by the German Labor Ministry. The package would tighten eligibility requirements for certain EU citizens, increase employer liability for incorrect registrations, expand data matching and inspections, and strengthen municipal action against exploitative housing.
A government action plan aimed at combating worker exploitation and the abuse of social benefits has been presented by German Labor Minister Bärbel Bas, who said misuse of the welfare system can erode public confidence in the country’s social state. The 37-point package, developed jointly by the Labor and Interior ministries, brings together measures targeting both individual cases of benefit fraud and broader forms of organized exploitation. The Federal Cabinet is expected to consider and approve the package later this month, with implementation planned by the end of the year.
A key component of the plan focuses on the exploitation of immigrants from other European Union countries, particularly through so-called “junk properties,” a term used for severely deteriorated or otherwise inadequate housing. Municipalities would be given greater authority to intervene when social-benefit recipients are charged excessive rents for housing in poor condition. The government also intends to prevent job centers from covering unreasonable rental costs for such accommodations, addressing a practice that the plan identifies as part of exploitative business models.
New measures would tighten eligibility and expand action
The government is also planning stricter measures to prevent organized misuse of social benefits. According to Bas, expanded data matching, additional inspections and tighter rules are intended to make fraudulent claims more difficult to carry out and detect. The measures extend beyond individual cases of benefit abuse to larger structures involving organized fraud, sham employment and undeclared labor. Employers could face greater liability when workers are improperly or unlawfully registered and social benefits are subsequently paid without justification, placing greater responsibility on businesses whose practices contribute to improper payments.
Interior Minister Alexander Dobrindt described the package as a major step toward disrupting organized criminal structures linked to social-benefit fraud. Under the proposed rules, EU nationals would generally have to demonstrate five years of lawful residence in Germany to qualify for the relevant social benefits. The Federal Government also intends to exclude people who are wanted under an arrest warrant from receiving benefits, adding another restriction to the system as authorities seek to address forms of abuse associated with organized structures.
Bas said the broader objective was to reduce incentives for migrants to enter Germany’s social-benefit system while giving authorities stronger tools to address large-scale fraud and exploitative business practices. The proposed measures therefore combine tighter eligibility rules with expanded administrative oversight and greater municipal powers. Dobrindt likewise emphasized the package’s focus on exposing abuse, closing loopholes and increasing accountability for those directing organized exploitation, framing the initiative as an effort to address both the practices themselves and the structures that enable them.