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Illegal hiring of labor leads to human rights violations, an increase in the “shadow” sector of the economy and a reduction in social guarantees and employment tenure.
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The use of illegal workers and the absence of labor contracts are violations of labor legislation and entail administrative liability in the form of a fine ranging from 510 to 1700 .
If, during an inspection, facts are found that the employer violated the procedure for concluding an employment contract, provided that these actions led to the accrual and payment of income tax to the budget, the employer will be subject to penalties in the amount of 25% of the accrued tax liability. And for a repeated violation within 1095 days – 50%.
The legislation also provides for liability for failure to withhold or to transfer to the budget amounts of personal income tax when paying incomes, failure to notify or late notification of the revenue and duties authority about citizens’ incomes in the form of a warning or a fine from 2 to 3 n. m. d. g., for a repeated violation – from 3 to 5 n. m. d. g.
In addition, one should not forget the possibility of being subject to criminal liability for gross violations of labor legislation.