As of 3 September 2017, the recently passed law governing Social Insurance Law (Amendment No 2) Law 2017, Law 52 (I) / 2017, severe penalties will be imposed on employers who do not declare their employees with the relevant authorities.
All employers will now be obliged to declare employees to the Director of Social Insurance on the day before employment starts (instead of up to 1 month after as per current legislation).
The amended Law entered into force on 2 June 2017. From this date and for a period of 3 months, until 3 September 2017, employers are given the opportunity to declare all their employees and pay any overdue contributions thereby avoiding the imposition of potential financial penalties.
After 3 September 2017, and fine of €500.00 for each undeclared employee may be imposed on the employer according to the new provisions of the Law. Additionally, €500.00 will be imposed for each calendar month or any part of the calendar month of the illegal employment and up to six months before prior to the offence being discovered. As a result, the total amount that could be imposed on the employer could reach the staggering sum of €3500.00 per employee.
According to the Labour Minister Ms Zeta Emilianidou, the main effect of the bill will be the declaration of all employees with the Director of Social Insurance.
Please contact us for further information or if you believe that your employees are not correctly registered with the authorities so we can assist you in doing so in a timely manner thereby avoiding the imposition of the financial penalties.