Filenews 4 June 2025 - by Evagora Prokopiou
With a full depiction of the structure, responsibilities and sanctions in cases of violation of labour legislation, the work of the Inspection Service of the Ministry of Labour and Social Insurance was presented at a conference held in collaboration with ICPAC by Andis Apostolou, Head of the Inspection Service, Director of the Department of Labour Relations and Superintendent of Trade Unions.
The Inspection Service (MoE) was established by a law of 2020, with the aim of more effective and efficient supervision of the implementation of labour legislation, including the rules on undeclared work and insurable remuneration.
Staffing and duties
The Service consists of Inspectors, Assistant Inspectors and is under the supervision of the Minister of Labour. The Head is responsible for the operational planning, coordination and evaluation of inspections, as well as the annual submission of a program and project report. Inspectors carry out inspections in private and public workplaces, investigate complaints and train employers and employees.
Access and powers of inspectors
Inspectors have the right to access workplaces, to request documents and to cooperate with other public services. They are obliged to fill in an audit report and to draw up a report. The Assistant Inspector has the same powers when accompanying the Inspector.
Undeclared work and administrative sanctions
The law provides for severe penalties for undeclared work and inaccurate salary declarations. The administrative fine for employers reaches €500 per employee and increases in case of recurrence. The total fine can amount to €5,000 or even €10,000 in case of repetition of the violation. For self-employed workers, a fine of €200 per month of employment is imposed.
Enforcement procedure and objection
The procedure begins with the service of a notice of infringement, with the employer having five days to submit representations. The act of imposing a fine is executed within 30 days. In case of timely payment, a 30% discount is provided, while for delay an additional charge of €50 per day is imposed.
Employers' registers and obligations
Employers are required to keep a recruitment register and submit applications for employee registration to the Social Insurance Fund in a timely manner. The employee shall be presumed to have been employed for six months at one and a half times the basic salary, unless the employer proves otherwise.
Criminal dimensions and protection of inspectors
Obstruction of an inspector's work is an offence punishable by imprisonment for up to two years or a fine of up to €5,500. Inspectors are protected from criminal prosecution for actions carried out in good faith in the performance of their duties.
Statistics 2024 and effectiveness
In 2024, 7,858 inspections were carried out, in which 970 cases of undeclared work were found in a total of 18,526 employees. The amount of the fines amounted to €1,578,100 for undeclared work and €198,750 for other violations. The percentage of undeclared workers was 5.24%.
Cooperation and institutional dialogue
Finally, a Technical Committee has been set up with representatives of PEO, SEK, DEOK, OEB and CCCI, with an advisory role for the better implementation of the laws.
