Severe penalties for employers who fail to comply with the European Parliament directive on adequate wages and the National Minimum Wage (NMW) in the private sector are предусмотрed in a bill the Ministry of Labour intends to submit to Parliament.

According to a draft bill obtained by Brief, which is currently under review by a Technical Committee established by the Ministry of Labour with the participation of employer organisations and trade unions, strict sanctions are foreseen for employers who violate the provisions of the law.

Particularly heavy penalties apply in cases where employers obstruct Labour Ministry inspectors in the performance of their duties.

Offences and Penalties

Employers will be penalised if they refuse to answer or provide false information during an inspection, fail to present required records or documents, obstruct individuals from appearing before inspectors, or knowingly prepare or allow the preparation of false payroll or wage records.

In such cases, offenders will be guilty of a criminal offence and, upon conviction, may face imprisonment of up to three months or a fine of up to €3,000 or €5,000, or both.

Where an offence is committed by an employer’s representative or another person, that individual may be prosecuted in the same manner as the employer. However, if the employer proves to the Court that due diligence was exercised and that the offence occurred without their knowledge, consent, or involvement, the employer may be exempt from penalties—without affecting the Court’s power to order payment of wages owed to employees.

The bill also provides that when an employee covered by the minimum wage works at the premises of another person, that person may be deemed a joint employer together with the direct employer.

Employers who violate the provisions of the forthcoming law face imprisonment of up to two years or fines of up to €10,000, or both, as well as an additional daily fine of up to €50 for each day the offence continues after conviction.

In addition, the Court may order employers to pay outstanding wages calculated on the basis of the applicable minimum wage. This power does not limit employees’ rights to pursue wage claims through other legal means.

Powers and Duties of Labour Inspectors

Under the bill, Labour Ministry inspectors are responsible for ensuring effective enforcement of the law through inspections, investigations, and the examination of complaints.

Inspectors may provide guidance to employers and employees, report implementation issues to the competent authorities, and submit recommendations for corrective measures.

They are authorised to enter workplaces—excluding private residences—at any time, without prior notice, upon presentation of identification. Entry into residences requires the occupant’s consent. Inspectors may be accompanied by police officers if there is reasonable cause to believe obstruction may occur, and may also be assisted by other persons deemed necessary.

Inspectors may require individuals to provide information or assistance, request records and documents, and seek support from public authorities. They may exercise any other powers necessary to ensure compliance with the law.

Employers or their representatives must be informed of an inspection unless such notification could undermine its effectiveness. Inspectors may investigate disputes arising from the law’s application and attempt to facilitate settlements.

Where a dispute is resolved, a settlement record is prepared and signed by both parties. If no settlement is reached, inspectors compile a report detailing their findings, which may be submitted to the Industrial Disputes Court.

Employers, their representatives, and employees are required to cooperate fully with inspectors and provide all necessary documentation and assistance. Inspectors are bound by confidentiality obligations regarding investigations and complaints.