The German cabinet approved a draft law on Wednesday to force logistics and ecommerce companies that outsource deliveries to ensure that their subcontractors pay proper social security contributions for their drivers.

The legislation was proposed after police launched nationwide raids on subcontracting delivery firms in February and uncovered numerous cases of social security fraud and drivers working off the books...

Labour lawyers say the new rules are likely to push up costs for those logistics and ecommerce companies... 

Most logistics companies in Germany use subcontractors, including Amazon, which is now also expanding its own delivery network.

Bernd Gschaider, Germany director for Amazon Logistics, told Reuters [...] the proposed legislation would not have any impact on Amazon’s business because it already demanded its subcontractors complied with German labour law. 

Amazon’s move into logistics poses a threat to players like former state monopoly Deutsche Post DHL, which uses relatively well paid employees to do its deliveries rather than subcontractors...

The proposed legislation seeks to extend to the parcel sector rules that already cover the construction and meat processing sectors: these make companies liable if their subcontractors fail to pay social security contributions for their workers. 

Heil said he hoped parliament [...] would approve the law before Christmas, the busiest season for the parcel sector...