Low pay and loopholes: flouting the labour laws

Though the German labour market remained closed to workers from 12 new EU member states after the last two waves of accession…

Though the German labour market remained closed to workers from 12 new EU member states after the last two waves of accession, many companies have explored the EU as a way around the ban.

The main favoured loopholes include taking on workers from Poland and Romania as "self-employed" and one-man companies. They are also "hired" from employment agencies in Warsaw and Bucharest. These agencies are often little more than post-office box firms. In this way, the workers are outside all German labour legislation with no rights, working for a fraction of a German wage.

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