The German cabinet recently approved a draft law to make it mandatory for logistics and e-commerce firms that outsource deliveries to ensure their sub-contractors pay proper social security contributions for their drivers. Police raids on subcontracting delivery firms in February and uncovered cases of social security fraud and drivers working off the books.
“Sub-sub-sub contractors are working in many areas. Wages are being pushed down and social insurance contributions are not being made and we won’t put up with this any longer,” media reports in the country quoted labour minister Hubertus Heil as telling journalists.The German cabinet recently approved a draft law to make it mandatory for logistics and e-commerce firms that outsource deliveries to ensure their sub-contractors pay proper social security contributions for their drivers. Police raids on subcontracting delivery firms in February and uncovered cases of social security fraud and drivers working off the books.#
Te new rules are likely to push up costs for those logistics and e-commerce firms that have turned a blind eye to the way sub-contractors treated workers in the past, feel labour lawyers.
Most logistics companies in Germany use sub-contractors. (DS)
ALCHEMPro News Desk – India
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