On 2nd May, 1933, Adolf Hitler ordered the Sturm Abteilung (SA) to arrest Germany's trade union leaders. He then gave Robert Ley the task of forming the Labour Front (DAF), the only union organization allowed in the Third Reich.

A pay freeze was introduced in 1933 and this was rigorously enforced by the Labour Front. Wages were now decided by the Labour Front and compulsory deductions made for income tax, and for its Strength through Joy programme.

The Labour Front also issued work-books that recorded the worker's employment record and no one could be employed without one.