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Germany to combat illegal employment in textile sector
Mar '12
Germany's Ministry of Finance has entered into a joint agreement with the country's textile industry to combat illegal employment, in order to improve the labour market situation, and thereby to increase tax revenues for the Government.

The agreement envisages introduction of measures to ensure compliance with the minimum wage norms by the textile industry and to disseminate information regarding the negative impact of illegal employment.

As per the agreement, the textile industry commits to discourage offering excessively low wages and other illegal practices, encourage fair competition, and guarantees payment of contributions towards taxes and social insurance. The industry also pledges to strictly enforce the law to combat illegal employment and undeclared work.

The Ministry said joint efforts are necessary to raise awareness among the people about the negative consequences of illegal employment on the labour market as well as on the country's tax and social security revenues.

In the past, the Ministry has concluded similar agreements with employer associations and unions of few other industrial sectors.

Fibre2fashion News Desk - India

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