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German Salons Face Tougher Checks Under New Undeclared Work Law

Stricter checks aim to level the playing field—but salon owners fear unfair burdens. Can digital solutions ease the strain on struggling businesses?

The image shows a painting of a woman with black hair wearing a black dress against a blue...
The image shows a painting of a woman with black hair wearing a black dress against a blue background. Her face is the focus of the painting, with her eyes looking directly at the viewer and her lips slightly parted. Her hair is pulled back in a neat bun, and her dress is a deep, rich black. The blue background provides a stark contrast to her dark clothing, making her stand out even more.

Black work in hairdressing and beauty salons - Chamber warns - German Salons Face Tougher Checks Under New Undeclared Work Law

Hairdressers and beauticians in Germany now face stricter checks as their industry falls under the Act to Combat Undeclared Work. Customs officials have gained broader powers to inspect salons, aiming to root out illegal employment practices. The move has sparked concerns among business owners already balancing tight budgets and customer expectations.

The Magdeburg Chamber of Skilled Crafts has backed the inspections but insists they must be conducted fairly. Officials have called for checks to avoid disrupting daily salon operations or unsettling clients. They also stressed that inspections should not rely on superficial appearances or place excessive burdens on legitimate small business ideas.

Efficiency and digital support are key demands from the chamber. Inspections must be well-coordinated, with clear guidelines to prevent unnecessary disruptions. The goal is to ensure compliance without harming law-abiding salons struggling to compete against unregistered operators. The chamber highlights deeper issues driving undeclared work in the sector. Underpayment, unregistered staff, and social security evasion create unfair price advantages that compliant small business loans cannot match. Addressing these root causes remains a top priority for the industry.

While the new checks aim to level the playing field, salon owners worry about the practical impact on their operations. The chamber’s call for balanced, digitally supported inspections reflects broader concerns about fairness and sustainability. For now, businesses must adapt while authorities refine their approach to enforcement.

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