I believe that is the power steering fluid pressure switch.
If i had to repair that at work or on my own car, I would
+ remove connector plug from the sensor,
+ then depin the connector plug, noting which colour wire came from each connector terminal (i.e take the old terminals out of it), the terminals will come out where the wires go into it, the rubber grommets will also come out with the wires/terminals (save the grommets).
+ take the terminals to a VW/Seat garage and ask for a wiring repair kit to match the terminals (this is basically a yellow length of wire with a terminal on either end) also ask for 2 red duraseal connectors (basically a crimp connector for joining wires with heat shrink around it to weatherproof the join). These should all be in stock as its a requirement by VW, so shouldn't need to be ordered in.
+ Cut the repair kit in half or to a suitable length, put a saved grommet onto the repair kit wire
+ Trim original wiring to length and crimp one side of duraseal connector to it
+ attach wiring repair wire to other side of duraseal connector and crimp
+ repeat wiring connecting sequence for other wire (remember the grommet)
+ Take one of the yellow wired repair terminals and note which original coloured wire you attached it to, now insert the connector into the connector in the side which you took the original coloured wire from.
+ take other repair terminal wiring and push terminal into connector, this should also relate to the original coloured wirings, which its connected to, position in the connector.
+ now push the grommets on the wiring repair sections (yellow wiring) into the connector to make weatherproof.
+ Use as lighter to carefully heat shrink the duraseal connectors (which connect the repair wiring to original wiring)
+ Tape everything up and generally tidy up to make repair look like original wiring.
If you wanted you could just depin connector one wire at a time, and take 1 wire and terminal to dealers, then repair one wire at a time to ensure that they are in same position in connector.
Hope thats clear and understandable would be easier with pics but hey I'm not at work at mo, lol.