New Fines for Employers who Hire Undeclared Labor



    undeclared laborGreece’s Labor Ministry is collaborating with the Labor Inspection Squad to impose new fines for undeclared labor.

    The revisions to the laws are being put forth as a part of an integrated plan which is part of Greece’s bailout commitments, which is expected to be completed by the end of July.

    The new proposal is to actually slash, not increase, the fines for undeclared labor from 10,550 euros to just 3,500. However, the new laws will state that employers who have hired and paid employees illegally must offer 12 months of legal employment to the individual with all of the correct paperwork filed.

    This is just one of many measures that the Labor ministry is preparing alongside the International Labor Organization.

    The current statistics reflect the rate of undeclared labor at more than 20 percent and the existing fined amounts of 10,550 euros, which is 18 times the minimum salary. This leads to only an estimated 18 to 20 percent of the fines actually being collected.