Minister announces hefty fines for undeclared work once the 3-month grace period is over

Hefty fines, starting from Euros 3,500 for each undeclared worker, and other penalties, will be imposed according to a bill that enters Friday into force. Wrongdoers will be given a 3-month grace period, but no more than that, said Labour Minister Zeta Emilianidou.

Speaking to reporters, the Minister said that the percentage of undeclared work in Cyprus is estimated at 15.4% and concerns mostly other EU nationals (50%), Cypriots (34%) and third country nationals (16%). According to Emilianidou, other European countries face the same problem to a similar extend.

The Minister also announced that a draft bill has been prepared and will be submitted for House approval in the next few days, concerning the creation of a Single Inspection Service, with extended powers. The first 20 individuals will be conducting inspections having modern tools at their disposal, such as risk analysis, said Emilianidou.

The fine for each undeclared worker stands at Euros 500 plus another Euros 500 for each month he or she has worked. The bill assumes that undeclared work has been going on for at least six months, putting thus a hefty price tag of Euros 3,500 for employers. There is a maximum penalty of Euros 10,000 for companies employing up to 10 people.

If the penalty is paid within 30 days, it is reduced by 30% and after that there is an additional penalty of Euros 50 per day. A procedure to lodge an objection is also foreseen in the bill.

Source: Cyprus News Agency