"German luxury real estate giant Engel & Volkers has been ordered to pay a fine of €16 million to Spain's Social Security system after labour inspectors uncovered the fraudulent use of "false self-employed" contracts for around 400 sales agents in Barcelona. The court ruling exposes a cost-saving scheme that is similar to violations in Valencia and brings to light intensified scrutiny of gig-economy practices in high-end property sales."
"Government authorities found that the company systematically disguised employees as independent contractors to dodge paying social security contributions. Officially, Engel & Volkers outsourced sales to external firms, but inspectors found that the company's management dictated sales territories, set commissions, and controlled working conditions, all hallmarks of traditional employment. The contractual model, once common in the sector, has since been abandoned by most due to mounting penalties."
Engel & Volkers faces a €16 million demand from Spain's Social Security after labour inspectors found approximately 400 Barcelona sales agents were classified as "false self-employed." Authorities concluded the company disguised employees as independent contractors, while management controlled territories, commissions and working conditions—features of employment. The model had been widely used but abandoned by most firms due to rising penalties. A spokesperson confirmed the demand is under administrative appeal. A separate €6.4 million claim in Valencia was upheld and is pending before the Supreme Court, with combined local regularisations potentially exceeding €22 million in back payments.
Read at Euro Weekly News
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