Undeclared Work Laws to be Finalized by Mid-October

Undeclared Work Laws to be Finalized by Mid-October

Parliamentary Committee to Conclude Discussions on Tackling Unregistered Employment with New Legislation

The Chairman of the Parliamentary Labor Committee, Andreas Kafkalias, said that the three bills aimed at combating undeclared work are expected to be brought before the Plenary for final decisions in the first half of October. He made these statements following the Committee’s session yesterday, where the article-by-article discussion is expected to be completed next week.

When asked about the scale of the undeclared work problem, Kafkalias stated that in 2023, 1,095 workers were undeclared, while 649 were found to be illegal. He noted that updated data will be presented to the Committee.

"Our stance as AKEL," said the MP, "is to positively support any legislative or political move aimed at tackling undeclared work." He expressed confidence that the electronic registration of all workers in the Ministry of Labor’s information system and the tightening of penalties will be tools that contribute to more effectively addressing the issue.

However, he emphasized that the government must "demonstrate the necessary political will to systematize inspections and enforcement, as the true measure of a law’s value is its practical application."

Responding to a journalist’s question about whether there is enough staff in the relevant services to meet the needs for more intensive inspections, Kafkalias noted that the issue of organization, staffing, and effective implementation of the law must also be considered to ensure the state fulfills its obligations.

When asked who would be considered the employer under the law for construction workers—the contractor or the subcontractor—Kafkalias stated that during discussions, trade unions suggested special provisions for the construction industry to address this issue. The government has reserved the right to return with a specific bill to regulate it.

Regarding fines, Kafkalias explained that under current legislation, administrative fines of €500 per month, up to a maximum of six months, are imposed. The proposed bill introduces an out-of-court fine of €1,000 and obliges the employer to pay contributions for any months the worker was not covered.

Loader