The Government on Friday approved in cabinet its new measures against the submerged economy. Under the plan employers will have until July 31 to regularise their employees without any fines being imposed. Despite the fact that the company will only pay the social security quotas from the moment the worker in affiliated, the Government has said it is ‘not an amnesty’.
After July 31, sanctions imposed will be imposed on businesses between 1.6 and 5 times higher than before, and any worker found working in the submerged economy while collecting unemployment pay will be fined a minimum of 10,000 €.
Companies are unhappy as they now have extra responsibilities regarding contraction of workers and some have criticised that they will have to act like work inspectors.
Minister for Employment, Valeriano Gómez, said that the reform is designed 'thinking of the future'.
Also approved in cabinet today, a stability program and reforms which will presented to the European Commission at the end of the month.
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