Lawmakers on Thursday passed legislation tightening up the rules on illegal and undeclared work, which among others provide for stiffer fines on employers.
Under the new rules, the minister of labour may issue a decree obliging employers to declare the essential terms of employment of their workers.
In addition, the fines on employers for undeclared workers will rise from €500 to €1,000. The amount applies per undeclared worker.
In the event a labour inspector determines a repeat (second) violation within two years of the first, the fine goes up to €2,000. A third violation carries a €3,000 fine.
During prior discussion of the relevant bills in parliamentary committee, Labour Minister Yiannis Panayiotou cited estimates according to which the Social Insurance Fund loses €10 million a year due to undeclared work.
The government has pledged to intensify checks at businesses in a bid to crack down on illegal and undeclared work.
Information on employees must be entered by the employers in the information system known as ‘Ergani’. The online system allows employers to register themselves and their employees with Social Insurance Services electronically.
