Kosovar Albanian Fined €7,200 in Regensburg for Fraudulent Self-Employment Scheme

Authorities in Regensburg, Germany, have uncovered a significant case of fake self-employment involving a Kosovar Albanian worker. The Regensburg District Court recently fined the man €7,200 after determining that he had been falsely registered as self-employed while actually working as a regular employee.

The individual, originally from Kosovo and identified as Albanian, was first employed by a construction company in the Kelheim district, where he was subject to social security contributions as a standard worker. Later, he registered his own business and claimed self-employment status. However, despite this official change, he continued to work for the same company—spending three days a week as a regular employee and two days a week supposedly working as a self-employed contractor. This dual status arrangement lasted for over a year.

The Financial Control of Illegal Employment unit of the Regensburg Main Customs Office uncovered the deception. According to presseportal.de, investigators found that the so-called self-employment was only on paper. “He used the company’s tools and equipment, had no machinery of his own, no independent advertising, and no other clients,” officials said. His work hours were strictly aligned with the company’s schedule, further confirming his employee status.

Moreover, the invoices he submitted to support his self-employment claims were actually prepared by the company itself, highlighting the orchestration behind the scheme.

This fraudulent practice caused a significant loss of more than €100,000 to the German social security system, affecting contributions that fund health insurance, pensions, and unemployment benefits.

This case highlights ongoing challenges faced by German authorities in detecting and prosecuting fake self-employment, a practice that undermines labor laws and social security systems. It also serves as a reminder of the importance of compliance for foreign workers, including those from Kosovo and the wider Albanian community, in the German labor market.