With parts of a new enforcement package taking effect on 1 January 2026, Germany has signalled a zero-tolerance stance toward employers who engage foreign staff without proper work authorisation. According to a legal alert from Vialto Partners, companies now face administrative fines of up to €500,000, exclusion from public contracts and subsidies, and a five-year ban on obtaining new work permits if caught.
Final legislative adoption is expected later in 2026, but the Federal Customs Authority’s Financial Control Unit for Undeclared Work (FKS) has already received a budget increase to hire 900 additional inspectors. Digital audit tools will allow the FKS to cross-reference payroll data with immigration records, accelerating investigations.
To help organisations and their international hires secure the correct documentation before the FKS comes knocking, VisaHQ offers streamlined German work-permit and visa services—including Blue Cards, Posted Worker notifications and the forthcoming Opportunity Card—through its online portal at https://www.visahq.com/germany/. The platform’s document-validation tools and in-house experts guide users step by step, reducing the risk of costly mistakes and keeping employers compliant.
![Germany Toughens Penalties for Undeclared Work Involving Foreign Nationals]()
For multinational employers the message is clear: onboarding, subcontractor management and time-tracking systems must be watertight. Internal audits should verify that Blue-Card holders, Posted-Worker permittees and soon-to-launch Opportunity-Card job-seekers are performing only the activities authorised by their visas. Failure to do so could jeopardise future corporate immigration filings.
The crackdown reflects political pressure to ensure that tighter border controls translate into fair labour standards at home. It also aligns with the EU’s wider push for member states to penalise facilitators of illegal employment, a key pillar of the bloc’s new Migration Pact.
Companies are advised to brief HR, procurement and site managers on the new sanctions and to document compliance efforts, as inspectors will now be able to impose fines on the spot during workplace raids.
Final legislative adoption is expected later in 2026, but the Federal Customs Authority’s Financial Control Unit for Undeclared Work (FKS) has already received a budget increase to hire 900 additional inspectors. Digital audit tools will allow the FKS to cross-reference payroll data with immigration records, accelerating investigations.
To help organisations and their international hires secure the correct documentation before the FKS comes knocking, VisaHQ offers streamlined German work-permit and visa services—including Blue Cards, Posted Worker notifications and the forthcoming Opportunity Card—through its online portal at https://www.visahq.com/germany/. The platform’s document-validation tools and in-house experts guide users step by step, reducing the risk of costly mistakes and keeping employers compliant.
For multinational employers the message is clear: onboarding, subcontractor management and time-tracking systems must be watertight. Internal audits should verify that Blue-Card holders, Posted-Worker permittees and soon-to-launch Opportunity-Card job-seekers are performing only the activities authorised by their visas. Failure to do so could jeopardise future corporate immigration filings.
The crackdown reflects political pressure to ensure that tighter border controls translate into fair labour standards at home. It also aligns with the EU’s wider push for member states to penalise facilitators of illegal employment, a key pillar of the bloc’s new Migration Pact.
Companies are advised to brief HR, procurement and site managers on the new sanctions and to document compliance efforts, as inspectors will now be able to impose fines on the spot during workplace raids.
