there has been an intensification in the implementation of additional measures to tackle undeclared work, with the Ministry of Labour already preparing the relevant draft laws that will, among other things, tighten penalties by doubling fines.
Some view these measures as part of a more effective approach to combating illegal immigration.
The measures decided upon recently by the Cabinet are expected to be discussed in the next session of the Labour Advisory Body, as promised by the responsible Minister, and as demanded by employers’ organizations with their positions in Phileleftheros without fundamentally disagreeing with the related announcements.
The action plan approved last month by the Cabinet was announced by the Minister of Labour, Yiannis Panagiotou, on April 26, acknowledging that the phenomenon of undeclared work has been intensifying lately, as evidenced by relevant inspections, possibly due to changes regarding the tightening of the framework for employing asylum seekers.
Within this framework, it was decided that there will be a tightening of measures against undeclared work, with the main measure in this direction being the doubling of fines for employers for each case of undeclared work that is identified.
For the doubling of fines, as well as for other proposed measures, legislative amendment will be required, hence the need for social dialogue.
Regarding the fine for undeclared work, the Minister explained that the intention is to increase it from €500 today to €1000 for each case of undeclared work.
Furthermore, it is being proposed that the fine become extrajudicial from administrative, a development that practically means its automatic and on-the-spot submission without the procedures stipulated by current legislation, which will need to be modified.
Laws will also be needed for other announced measures, such as the inclusion of liability on the main contractor in addition to the subcontractor for cases of undeclared work, and for the electronic registration of employees in the “Ergani” information system.
Regarding the registration, it is noted that there has already been dialogue and that the relevant draft law is already prepared. To address the problem that causes negative side effects in the labour market and unfair competition between companies, the Ministry of Labour will also increase its inspections.
Consultation is requested
As stated in principle, employers’ organizations do not express serious reservations about the announcements made, but at the same time – primarily the CCCI – they emphasize the need for sufficient consultation.
Speaking to Phileleftheros, the Secretary-General of the CCCI, Marios Tsiakkis, expressed that the Chamber’s steadfast position is the combatting of undeclared work, both for the purpose of accurate recording and image, and to ensure conditions of fair competition.
Regarding fines, he estimated that if a business is law-abiding and complies with the relevant laws and regulations regarding employment, it has nothing to fear. However, he reiterated the reservations held by the CCCI about any inconvenience and problems regarding the registration of employees, for which, as Tsiakkis said, the Chamber is not negative.
The need for sufficient dialogue before finalizing decisions was emphasized by the General Director of the CCCI, Michalis Antoniou, clarifying that the organization, along with the Employers and Industrialists Federation, was a pioneer in taking measures against undeclared work over 15 years ago.
“Back then, we took the initiative and promoted measures with the help of the Ministry of Labour, so we are fundamentally in favor of the goal of combating undeclared work, which inherently affects our members who are organized and who fulfill their obligations, legal and contractual,” said Antoniou.
But he added that the CCCI considers it imperative to have exhaustive and substantive dialogue and consultation before decisions are finalized, because we must be sure that the measures are effective, realistic, and feasible and that they do not victimize well-intentioned and innocent entrepreneurs.
