Logistics: 1,800 undocumented workers uncovered and tax fraud amounting to 35 million; 23 people reported to the authorities

The Rome Financial Police have uncovered a complex system of illegal labour in the logistics sector. Over 1,800 undocumented workers were identified, along with a tax fraud scheme based on false invoices totalling over 35 million euros, involving VAT evasion in excess of 10 million. Twenty-three individuals and 11 companies have been reported to the authorities. Clients operating in the large-scale retail sector are also implicated.

The scheme identified by the Fiamme Gialle is a “model” of illegal labour supply in the logistics sector, based on the use of companies with no actual economic activity.

The work carried out by the Pomezia Brigade of the Guardia di Finanza, acting on the instructions of the Public Prosecutor’s Office in Velletri, which coordinated the investigation, has made it possible to establish that, between 2020 and 2022, – of over 1,800 workers in an irregular employment situation. In particular, critical issues emerged regarding the correct classification of employment relationships and compliance with the social security and welfare obligations laid down by current legislation.

The system made use of 11 so-called ‘pool’ companies, which were formally the employers under the employment contracts but lacked an independent organisational structure. The workers were registered as employees of these entities, whilst the actual management of their work was carried out by the lead consortium company.

This arrangement has led to a disconnect between formal ownership and the actual management of employment relationships, with potentially detrimental effects on the legal and economic position of the workers concerned.