During the cabinet meeting on 18 September Germany’s grand coalition approved draft legislation proposed by Labor and Social Affairs Minister, Hubertus Heil (SPD) that aims to protect package delivery workers (Paketboten-Schutz-Gesetz) and tackle excessive recourse to sub-contracting. The draft legislation aims to bring the packages delivery sector within scope of the principle of ‘Joint Liability of the Principal’ (Nachunternehmenhaftung), which has been operating for some years in the construction and meat industries. The principle intends that the principal, and in this case the packages transporter, is responsible for shortfalls by sub-contractors in fulfilling their social contribution payments obligations. The draft legislation has sparked resistance by the employers.
Fraud. The topic is important to the Labor and Social Affairs Minister who has often been critical of the ‘unacceptable development’ apparent in certain parts of the parcels delivery sector. “Workers, often from Central and Eastern Europe and speaking little German are being exploited,” slammed the Social Democrat Minister during the government’s adoption of his draft law. A nationwide operation carried out by the customs authorities in February 2019 revealed that one in six parcels...
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