A letterbox company is a firm that is set up with the intention of circumventing legal and conventional obligations. These so-called companies do not actually perform any socio-economic activities although claiming to do so. Letterbox companies are increasingly being used as a way to avoid paying workers’ social security contributions and wages. The EFBWW sees this type of exploitation mainly in the case of temporary cross-border employment.
Free competition in the EU is giving foreign letterbox companies free rein to get away with not paying billions of euros of social security and freely exploiting workers in the process. This is clearly a European problem that must be solved!