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25 July, 2024
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Ministry of Labor cracks down on undeclared labor

500 euro fine for each month an employee worked undeclared in the Social Insurance System

Source: CNA

Targeted inspections in the construction sector will now be conducted by the Ministry of Labor, Welfare and Social Insurance beginning in March in an effort to clamp down on undeclared labor.

According to an announcement by the Ministry, inspections will be conducted in the construction industry nationwide in order to track down workers who are working for companies but undeclared in the Social Insurance system.  The move is also meant to ensure that companies are complying with basic labor laws.

In the case that an undeclared worker is found to be employed, the company will be fined 500 euros multiplied by 7 months, unless the employer can prove that the period of violation was shorter.  If it is found that the worker was employed longer, the 500 euro fine will be multiplied accordingly by the number of months worked.

The statement said, "The aim of the campaign is to raise awareness of the consequences of undeclared work and non-compliance with the provisions of the relevant legislation".  Companies in Cyprus are required to comply with basic employment conditions such as salary, working hours, weekly off, etc.

The Ministry notes that there is a nationwide Cypriot hotline that the public can call to report employment violations or undeclared work.  the number is 77778577.

Cyprus  |  labor  |  employment

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