The strengthening of controls for the implementation of labor legislation and the fight against undeclared work were at the center of the presentation of the Head of the Inspection Service, Director of the Department of Labour Relations and Superintendent of Trade Unions, Andy Apostolou.
The presentation made during a conference co-organized by ICPAC with the Ministry of Labour focuses on the role of the Inspection Service, which operates on the basis of the Establishment of an Inspection Service in the Ministry of Labour and Social Insurance Law of 2020, as well as on the administrative sanctions imposed in cases of violation of laws that fall within its competence.
The purpose of the law is the more effective and efficient operation of the inspection and control services of the implementation of a number of legislations, for which the Ministry of Labour and Social Insurance is responsible.
The Inspection Service consists of the Head of Inspections, Inspectors and Assistant Inspectors, who are appointed by the competent authority. The Service is under the supervision and control of the Minister of Labour and Social Insurance.
Information, advice and on-the-spot checks
According to the presentation, the Inspection Service has a dual role: on the one hand, it provides information, advice and training to employers and employees on the provisions of the laws and how they are applied, and on the other hand, it carries out necessary inspections in private and public workplaces.
The Agency has the power to inspect 30 different laws. These include the Social Insurance Law, the Annual Paid Leave Law, the Teleworking Law, the Posting of Workers in the Context of the Provision of Services Law, the Equal Treatment in Employment and Occupation Law, the Maternity Protection Law, the Protection of Young People in Employment Law, as well as legislation on the minimum wage, the protection of wages, the organization of working time, the conditions of employment in leisure centres and hotels, the construction industry and social benefits.
The responsibilities of the Head
The Director-General or Head of the Service is responsible for the organisation and operation of the Inspection Service, the planning of inspections, the coordination and evaluation of the work of inspectors on the basis of the principle of proportionality, as well as the preparation of training programmes for inspectors and for employers and employees.
At the same time, it is obliged to prepare and submit an annual inspection program, to cooperate with the directorates of competent services and departments, to exchange data and information for the most effective execution of the project, to prepare quarterly or extraordinary reports to the competent authority and to submit an annual report.
The powers of inspectors
The inspector conducts systematic and targeted inspections, audits, investigations and examinations to implement the legislation. It examines complaints and complaints, trains employers and employees, provides information and advice, and adheres to safety and health provisions.
Within the scope of his powers, he may enter any workplace, with the exception of homes, at a reasonable time or at a time he considers appropriate. It may also request the assistance of any public service, require the production of registers, records, certificates or other documents, and request information from any person when it has reasonable cause.
The Assistant Inspector, when accompanying an inspector, has the same powers with regard to the inspection. After each inspection, the inspector is required to complete an audit report of a specific type, a copy of which is sent to the relevant director.
Fines for violations of laws
Violation of provisions of specific laws entails the imposition of an administrative fine. For violations included in Table I, the fine amounts to €500 for each affected employee. For violations of Table II, the fine amounts to €250, while in case of repetition it increases to €500.
The total amount of the fine may not exceed €5,000 in each case of a violation. In case of repetition, the total fine can reach up to €10,000. No administrative fine is issued when criminal prosecution is initiated for the same articles of law.
Table I includes, inter alia, the provisions of the Maternity Protection Law, the Protection of Young People in Employment Law, the Law on Paternity, Parental Leave, Care, Force Majeure and Flexible Work Arrangements, the Part-Time Employees Law, the Equal Pay for Men and Women Law and the Law on the Regulation of the Operation of Shops.
Table II includes provisions of the Transparent and Predictable Working Conditions Law, the Regulations for Hotel Employees, the Minimum Wage Law, the Wage Protection Law, the Construction Industry Act and the Priority Provision of Public Service Facilities to Specific Population Groups.
The procedure for imposing a fine
When a violation is detected, a Notice of Violation is served. The employer has 15 days to provide the necessary information. After the expiration of the deadline, a Fine Imposition Act is drawn up.
The fine is paid within 30 days to the District Offices of the Social Insurance Services. In case of repayment before the lapse of 30 days, a 30% reduction is provided. On the contrary, in case of late payment, the fine increases by €50 for each day of delay, with a maximum additional charge of up to twice the original amount.
It is also possible to submit an objection to a three-member committee, chaired by the Director General of the Ministry of Labour and Social Insurance.
Inspection register and confidentiality obligation
The presentation also refers to the maintenance of a register of inspections for businesses and the self-employed. The register records information such as the name, the employer's registration number, the address of the premises, the date of commencement of work, the number of employees, the date of inspection, the penalties imposed and the convictions.
The officers of the Service have an obligation to safeguard any issue or information as confidential, while they are also subject to civil liability in accordance with article 70 of the Public Service Law.
Penalties for obstructing the work of an inspector
Particular reference is made to obstructing the work of an inspector. A person who deliberately refuses to answer, answers falsely or fails to present any record of committing an offence.
This offence is punishable by imprisonment not exceeding two years or a fine not exceeding €5,500 or both.
At the same time, no civil action or criminal prosecution is brought against the Head, inspector or assistant inspector for acts done in good faith. The implementation of the laws remains the responsibility of the competent directors.
The presentation also notes the establishment of a technical committee for the better implementation of the laws and for an advisory role, with representatives of PEO, SEK, DEOK, OEB and CCCI.
What is considered undeclared work
In the second part of the presentation, the focus shifts to undeclared work and its consequences.
Undeclared earnings are defined as insurable earnings for which the employer has not submitted the statement of earnings and contributions within the deadline for the payment of contributions. The definition also includes the false declaration of insurable earnings.
Undeclared work is defined as the insurable employment of an employee or self-employed person, which has not been declared to the Director in accordance with the applicable regulations.
Administrative penalties for employers
For employers who employ undeclared employees, an administrative fine of €1,000 is provided for each employee for the first month in which the violation was found. The fine is increased by €500 for each calendar month or part of a month of employment prior to the month in which the violation was established, with a total amount of €4,000.
For an employer that employs up to 10 employees, the total amount of the administrative fine cannot exceed €10,000 in each case of a violation finding.
Before imposing an administrative fine, the inspector draws up on the spot and serves the employer with a Notice of Finding of Infringement, with acknowledgement of receipt. The notice records the finding of the violation and the intention to impose an administrative fine, while the employer is given the right to submit representations within five days from the date of the notice.
In case the fine is paid within 30 days from the date of service of the Fine Imposition Act, the amount is reduced by 30%. In case of late payment, it is increased by €50 for each day of delay.
Presumption of employment of six months
In the event of a violation, the employee is presumed to have been continuously employed by the employer for the immediately preceding six months, with remuneration equal to one and a half times the amount of the basic insurable earnings in force on the day of the violation.
This presumption does not apply if the employer proves that the period of employment was shorter or that the amount of remuneration was lower. On the other hand, where it is established that the actual period of employment was longer than six months or that the actual remuneration was higher than the presumed amount, the actual period and the actual amount of remuneration are taken into account.
Undeclared employment of a self-employed person
For the undeclared employment of a self-employed person, an administrative fine of €200 is imposed on the self-employed person, which is increased by €200 for each calendar month or part of a month of employment before the month in which the violation was found.
Any person who is not satisfied with a decision issued under the amending law may, within 15 days of notification of the decision, lodge an objection with the Appeals Committee. The Committee consists of the Director General of the Ministry of Labour and Social Insurance as chairman and two officials of the Ministry, who are appointed by the Minister as members.
Employer obligations and recruitment register
The application for registration of an employer with the Social Insurance Fund must be submitted no later than one day before the day on which the applicant is expected to become an employer.
Every employee must, at least one day before his recruitment, notify the employer of his identity number and his social security number. If the employee is not insured, the employer must provide him with a registration application, which the employee completes and delivers to the employer. The employer submits the application for registration of the employee to the District Social Insurance Office within seven days of recruitment.
Each employer keeps a recruitment register, in which he enters in order of the date of recruitment the serial number of the recruitment, the name of the employee, the identity card and social insurance number, the date of recruitment and the date of commencement of employment.
The recruitment register and payroll book must be available for inspection by inspectors at any reasonable time.
Inspection data for 2025
According to the statistics presented for 2025, a total of 7,920 inspections were carried out. The inspections concerned 18,366 employees, of which 1,009 were identified as undeclared and 1,095 as illegal employees.
The amount of administrative fines for undeclared work amounted to €1,945,000.
The presentation also lists percentages of undeclared employees, with reference to 2017, when the percentage amounted to 14.22%, as well as subsequent percentages of 5.60%, 6.48%, 5.24% and 5.49%.
