Filenews 25 February 2024 - by Evagoras Prokopiou
They are waiting for the implementation of the Ergani II information system at the Ministry of Labour and especially at the Department of Labour Inspection, since, along with the forthcoming amendment of the legislation, they will be important weapons in their quiver in the "war" against undeclared work.
Referring to recent developments, Andy Apostolou, head of the Inspection Service and deputy director of the Department of Labour Relations, told "F" that the Aliens and Immigration Law will be amended in 2024, so that inspectors of the Inspection Service will be authorized to impose fines as well as other sanctions to employers, in case of detection of illegal employment and illegal residence, in accordance with the aforementioned law.
Regarding the implementation of the ERGANI II system, he emphatically noted that it will offer additional applications for the benefit of employees but will also be a plus for the better implementation of legislation to combat undeclared work.
"Superweapon" Ergani II
Regarding ERGANI II, Mr. Apostolou said that based on a decision of the Minister of Labor and Social Insurance, Yiannis Panagiotou, a census of all employees will be carried out through this system, which will include the basic terms of employment (salary, working hours, holidays, overtime, compensation), in order to have a complete picture of the labour market.
The Ministry of Labour and Social Insurance will proceed in 2024 with an amendment to the Transparent and Predictable Working Terms Law (Law 25(I)/2023), so that employers can enter in this system, for each employee, information on the basic terms of employment.
He clarifies that the ERGANI information system was granted to the Ministry of Labor and Social Insurance by Greece, on the basis of a memorandum of cooperation and is already being used effectively. This system protects labour rights and fights undeclared work.
He also noted that recently the ERGANI information system of the Ministry of Labor and Social Insurance was interconnected with the information system of the Asylum Service, so that the employer is immediately informed in case of rejection of an asylum application by his employee, so that either the employment of the applicant in question does not proceed, or, in case the person is already working, terminate employment.
In addition, he told "F" that we are in the process of implementing the ERGANI II information system, which is a modern advanced information system, already successfully used in Greece. Our goal, he said, is "within the next few months to have a gradual integration of all applications of the system in Cyprus".
It is important according to Mr. Apostolou that through the ERGANI II information system, the actual hours of employment of employees will be recorded through a "digital work card", as well as their days off / breaks. This system is compatible with all employers' information systems. This system therefore combats undeclared and undeclared work, as well as unpaid overtime.
We will be able, he noted, at any time to monitor whether the employer declares fewer hours to employees, in order to lower the salary. In addition, he said that through ERGANI II, the employee will be able to monitor himself with codes that will be given to him if his employer has declared him, as well as his terms of employment.
Finally, he told us that the service provides information, advice and training to employers and employees on the provisions of the laws, as well as on how to implement them and "in addition, there is excellent cooperation of the service with trade unions and employers' organizations, regarding the training of members on their obligations and rights in relation to undeclared work and its consequences. but also for the annual planning of inspections in specific sectors".
The Inspection Service
Mr. Apostolou explained that the Inspection Service was established by decision of the Council of Ministers in 2017. Since 2020 it has been operating under the Establishment of the Inspection Service at the Ministry of Labour and Social Insurance Law (Law 88(I)/2020). The task of the Inspection Service is to monitor the implementation of the provisions of legislation for which the Ministry of Labour and Social Insurance is materially responsible. Specifically, the service ensures the implementation of provisions of 30 labour laws.
Mr. Apostolou also said that the main mission of the service is to actively contribute to the fight against undeclared and illegal work. In addition, compliance with general terms of employment is monitored and clarified that "undeclared work" means insurable employment of an employee or self-employed person, which has not been declared to the Director of Social Insurance, in accordance with the applicable regulations.
16,000 meetings
On an annual basis, the Inspection Service carries out more than 7,000 inspections at workplaces in various economic sectors and meets more than 16,000 employees, while at the same time it cooperates with other state services, such as the Cyprus Police and the Civil Registry and Migration Department of the Ministry of Interior, to conduct joint inspections.
Regarding the controls, the head of the Inspection Service said that the service inspects and controls workplaces and carries out all necessary examinations, during and outside public hours. Inspections are carried out in all free areas of the Republic of Cyprus. The audits are carried out either on the basis of information through the Pancyprian telephone line (77778577), or on the basis of the annual program, with inspections covering the entire range of employers, depending on their size and economic activity. It is clarified that anonymous / named complaints are accepted on this hotline, as well as information in relation to undeclared work or violation of the terms of employment.
748 complaints – a gradual decrease
In 2023, 748 complaints were made about undeclared and illegal work, as well as issues related to terms of employment of employees.
An encouraging result of the service's work is that, based on available statistics, a decrease in undeclared work in Cyprus has been shown, from 14% in 2017 to 6% in 2023.
Regarding the penalties for offenders, he noted that, according to the provisions of the Social Insurance Law (59(I)/2010), in case of detection of an undeclared person in the Social Insurance Fund, an administrative fine of €500 is issued to the employer, multiplied by 7 months, unless it is proven by the employer that the violation period was shorter. Where it is established that the infringement period was longer, the fine shall be multiplied by the actual months. The total amount of an administrative fine imposed on an employer employing up to 10 employees may not exceed €10,000 in each case of a violation.
