Working Without Official Employment – What Fines and Compensation Employers Face
The Department of Inspection Activities in Zhytomyr Region explained what consequences working without formalizing employment relations can lead to and what sanctions are applied for violating labor legislation.
What liability is provided for violations
Various types of sanctions may be applied for violations of labor legislation. Their nature depends on the type of violation, its consequences, and the form of the employer's business.
Employer's obligations in case of a labor dispute
If a labor dispute is resolved in favor of the employee, the employer is obliged to:
- restore the violated labor rights of the employee
- compensate all incurred losses
- pay wages for the entire period of work, regardless of whether payments were made during the actual work
- pay the single social contribution for the entire period of the employee's work
Amount of compensation and additional payments
If a violation is established, the employee has the right to:
- receive a salary not lower than the average in the relevant industry
- compensation for moral damage
Possible criminal liability
The inspection emphasizes that gross violations of labor legislation may lead not only to administrative sanctions but also to criminal liability.
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