← BlogMarch 1, 20245 min readEditorial teamDEUAENRU
For businesses
FKS inspection: how businesses prepare for a customs check
The Financial Control of Undeclared Work (FKS) of German customs inspects without notice — on building sites, in hotels, in fields. If your documents are in order, you stay calm.
What the FKS checks
The FKS mainly checks compliance with the minimum wage, correct registration with social insurance, working time records and the required residence and work permits. The basis includes the Act against Undeclared Work and the Minimum Wage Act.
Which sectors are most affected?
Construction, hospitality, building cleaning, transport and logistics, agriculture and other sectors with a higher risk of undeclared work. In some of them, immediate registration and the duty to carry ID apply.
Documents to keep ready
- Employment contracts and social insurance registrations.
- Time records: start, end and duration of work, by the end of the seventh day after the work was done, kept for at least two years (§17 MiLoG).
- Payslips and proof of payment.
- For external staff: contracts (contract for work or agency), posting evidence and the agency’s licence.
- Residence documents and, where needed, work permits.
Typical mistakes
- Time records missing or estimated afterwards.
- Unclear distinction between a contract for work and agency work.
- Subcontractors hired without checks.
- Minimum wage undercut through deductions.
Possible consequences
Violations of the Minimum Wage Act can be fined up to €500,000. Clients also stand liable for their subcontractors under §13 MiLoG.
Conclusion
Clean documentation is the best preparation. Check yourself regularly before customs does.
FAQ
Does the FKS announce inspections?
As a rule no; checks are unannounced.
How long must time records be kept?
At least two years.
Is the client liable for subcontractors?
Yes, under §13 MiLoG like a guarantor for the minimum wage.
How high can fines be?
Up to €500,000 for minimum wage violations.
