Engel & Völkers fined 22 million euros for using fake self-employed workers

The luxury real estate agency faces major penalties in Barcelona and Valencia over labor irregularities involving hundreds of agents.

Generic image of a luxury real estate office facade in an urban area.
IA

Generic image of a luxury real estate office facade in an urban area.

Luxury real estate firm Engel & Völkers has been ordered to pay over 22 million euros to the Social Security system following investigations into labor fraud in Barcelona and Valencia.

In Barcelona, labor inspectors uncovered 400 cases of agents working as 'fake self-employed' individuals, resulting in a 16 million euro fine. Authorities proved that the company maintained strict control over their sales areas and commissions, establishing a standard employment relationship.
A further 6.4 million euro penalty was upheld by the High Court of Justice of the Valencian Community, affecting 569 workers. These events occurred while Juan-Galo Macià, the current President of Engel & Völkers Iberia, was leading the regional operations.

"It is a passionate invitation to bet everything on red as a philosophy of life, to live the present with maximum intensity."

Juan-Galo Macià · President of Engel & Völkers Iberia
While the company's majority shareholder, Permira, faces this financial blow, Macià has been promoting his new book Todo al rojo. The firm claims it has updated its hiring policies as of 2024 and is currently appealing the sanctions before the Supreme Court.