Fraudulent Continued Remuneration and Unauthorised Secondary Employment

Sick leave fraud/Fraudulent continued remuneration is one of the most common reasons clients engage Kurtz Investigations Cologne. Our social security networks were designed to help those in need. That some employees view exploiting these systems through “calling in sick” as harmless is a misconception; it constitutes a real loss for employers and society. Calling in sick fraudulently is fraud.

 

Kurtz Investigations Cologne helps you prevent this active damage to your business. With major employers such as Ford, REWE, Lanxess, Saturn or Galeria-Kaufhof, all of which have their German headquarters in Cologne, the city has significant potential for employee offences. However, it is not these large corporations that are most affected by employees feigning illness, but rather small and medium-sized enterprises, where the absence of a single employee can disrupt entire business processes. Cologne’s city centre is traditionally dominated by these smaller companies. Approximately 81 percent of all Cologne businesses employ nine or fewer staff.

High Potential for Offences Due to Large Workforce in Cologne

The Cologne labour market is expanding. In 2014, the number of employees subject to social insurance contributions exceeded 500,000 for the first time, numerous new companies established themselves in the city, and others relocated to the carnival hub. The city anticipates a medium-term population increase of around 100,000. Within 100 km of Cologne, approximately 17 million people live and work – figures unmatched by most other European metropolitan regions. The planned construction of the environmentally friendly ICE plant in Cologne-Nippes, which from 2017 is expected to employ around 400 staff, was welcome news for the workforce and those aspiring to join it, and had already brought positive momentum to the construction sector. Young people are particularly drawn to Cologne by its creative flair and growth prospects, with demand for IT specialists, engineers, financial experts and media sector employees.

 

Unfortunately, many employees work “off the books” during their sick leave, whether for other companies, possibly even competitors, attending family events, taking holidays, or working on their own property or home. Employers are obliged to continue salary payments for up to six weeks in the event of illness. Do not allow yourself to be exploited. The detectives of Kurtz Investigations Cologne observe suspicious employees and secure court-admissible evidence: +49 221 4558 0377.

Illegal Trade in Sick Notes in Cologne

It is a nightmare for health insurance providers: doctors commercially trading in sick notes. This occurred in Cologne until autumn 2014, when police, acting on concrete suspicions, searched 40 apartments and made three arrests. The case involved the organised issuance of sick notes (at least 720) for fictitious employees of shell companies to unlawfully claim sickness benefits – a total six- to seven-figure sum. At least one Cologne doctor was directly involved in this health insurance fraud and additionally charged a five-figure amount for fictitious treatments.

 

This example highlights how easily employees in need can obtain sick notes despite being in good health.

Unauthorised Secondary Employment, Breach of Competition Prohibition

As a research city, Cologne possesses numerous institutes and universities with unique expertise and protectable knowledge. Innovative research areas and facilities, such as the Max Planck Institute for Biology of Ageing at the University Hospital, illustrate this. Wherever specialised knowledge accumulates, corporate espionage attacks among competitors can occur. A common method is poaching employees who are familiar with a competitor’s trade secrets.

 

Of course, every German citizen is generally free to pursue secondary employment in their free time. Employment contracts, however, often impose at least a duty to inform the employer when taking up such work. It becomes problematic if the secondary job creates a conflict of interest – for example, if the employee works for a competing company or regularly exceeds the legally permissible maximum working hours per week. Working during holiday periods is generally also prohibited, as this time is intended for recovery and to prevent a decline in the employee’s performance due to overwork. Unauthorised work often occurs “off the books” – using your clients and materials – causing significant financial damage to your company.

 

The detectives of our Cologne economic detective agency observe your employees and provide court-admissible evidence. If the suspicion is confirmed, the employee is generally liable for damages. Reclaim what is rightfully yours. Kurtz Investigations Cologne can help: +49 221 4558 0377.