The German government on Wednesday approved a law aimed at tackling illegal labour and money laundering, particularly in the hairdressing and beauty industry, including nail spas.

Under the new legislation, which still needs to pass parliament, employees in those sectors will be required to carry an ID at work and present it upon request during checks – a regulation that already applies in the construction and catering sectors, for example.

Barbershops in particular have become known as hotspots not only for illegal employment but also for money laundering and involvement in other organized crime, according to government sources.

Meanwhile, a high level of illicit work and exploitative working conditions has been observed in nail spas.

The law proposed by Finance Minister Lars Klingbeil also intends to enable the existing supervisory body to take more effective action against serious economic and organized crime.

“We are taking a tougher stance against those who enrich themselves at the expense of the general public and on the backs of illegally employed workers,” the minister said.

Klingbeil is also looking to improve data exchange between relevant authorities.

While hopes are that the changes will improve working conditions for employees in a range of sectors, the legislation is also intended to generate some €2 billion ($2.3 billion) in additional revenue for the federal government, federal states and social security funds by 2029, according to the ministry.

Source: dpa.com