Government to Introduce New Legislation Against Undeclared and Illegal Labor
In a decisive move to combat the surge in undeclared and illegal labor, Labor Minister Yannis Panagiotou announced that the government is poised to introduce new legislation aimed at addressing this growing concern. The bills are scheduled to be presented to the House of Representatives in June, with the intention of securing a vote before the summer recess.
During a meeting with the Labour Advisory Body, Minister Panagiotou underscored the recent increase in such practices and emphasized the need for swift action. The meeting also covered decisions regarding benefits for Turkish Cypriots under the Ministry of Labour’s jurisdiction.
Minister Panagiotou presented data linking the rise in undeclared labor to increased migration. He pointed out that a mere 24% of foreign nationals aged 17 to 65, who are in the country under various protection statuses or as asylum seekers, are registered with social insurance services. A significant number of these individuals are believed to be employed without proper declarations, lacking social insurance and health coverage.
The necessity of implementing effective measures was echoed by social partners, who concurred that such practices adversely affect economic competition, industrial relations, the pension system’s sustainability, and the management of illegal migration.
As part of the legislative overhaul, fines for undeclared work will see a substantial increase from €500 to €1000 per incident. The responsibility for these violations will extend beyond subcontractors to include main contractors as well. Moreover, the government plans to mandate the electronic registration of all employees in the Ministry of Labour and Social Insurance’s information system. Minister Panagiotou has confirmed that discussions on this particular bill have concluded.
With these proposed legislative changes, the government aims to clamp down on undocumented labor, ensuring fair competition and safeguarding workers’ rights. The introduction of these bills signifies a critical step towards eradicating undeclared and illegal labor practices within the nation.
