Germany Cracks Down on Labor Exploitation While Quietly Easing Workplace Safety Rules

Germany raids human trafficking ring, enforces minimum wage in logistics, eases safety rules, and faces US tariff threats over forced labor

Early on June 3, police units fanned out across several Berlin districts to arrest eight suspected members of a human trafficking ring. According to investigators, the group had been recruiting Indian specialty cooks since 2021 and then forcing them to work under brutal conditions. Victims reported shifts of up to 13 hours a day at wages well below the legal minimum. Their passports were confiscated, and they were housed in overcrowded apartments with severe fire-safety and hygiene violations.

The Berlin raid is just one element of a broader push by German authorities to enforce labor standards. Less than a month earlier, on May 1, more than 2,900 officers from the Financial Control Unit for Undeclared Work swept through package-delivery depots and distribution centers nationwide. Operating without specific suspicion, they checked compliance with the €13.90-per-hour minimum wage and the correct payment of social-security contributions. Finance Minister Klingbeil called the action necessary: “We secure state revenues and protect workers from exploitation.” The logistics sector, with its complex chains of subcontractors, is considered particularly vulnerable to abuse.

Yet even as enforcement intensifies, the government is simultaneously deregulating other parts of occupational safety. Since May 29, 2026, companies need only appoint a safety officer when they employ 50 or more people—up from the previous threshold of 20. Firms with 21 to 49 workers now require a designated officer only if a specific hazard has been identified. For businesses with up to 250 employees that have no unusual risks, a single safety officer suffices. Violations can draw fines of up to €10,000. The Bundesrat discussed a resolution on administrative modernization in workplace safety on June 4, aimed at streamlining procedures without lowering protection levels.

These shifts in domestic policy coincide with international scrutiny over labor rights. The United States has threatened roughly 60 trading partners—including the European Union, the United Kingdom, and Switzerland—with additional tariffs of 10 to 12.5 percent. The U.S. Trade Representative alleges that these countries fail to take adequate action against forced labor. The EU counters that its own regulations, passed in 2024, already address the issue. A hearing on the matter is scheduled for July 7.

A separate but related risk is emerging for multinational corporations: transfer pricing. In May 2026, both the European Court of Justice and Germany’s Federal Fiscal Court ruled that retrospective price adjustments within corporate groups do not only affect value-added tax—they also influence the customs value of goods. Experts advise companies to develop integrated compliance strategies to avoid back payments on import VAT and customs duties.