Cabinet approves bills to tackle illegal work

The Council of Ministers approved three new bills aimed at strengthening measures against illegal and undeclared work, Labour Minister Yiannis Panayiotou said in a statement on Wednesday.

The new legislation seeks to enhance the use of technology for monitoring employment terms and introduce stricter penalties, including on-the-spot fines.

Under the proposed laws, all employers will be required to record specific information about their employees in the ministry’s digital ‘Ergani’ system. This mandate applies to both new hires and existing staff. Employers found in violation of these regulations will face fines of €1,000 per incident, with increased penalties for repeated offenses.

Panayiotou also highlighted a bill targeting the responsibility of main contractors for illegal or undeclared work carried out by their subcontractors. Additionally, the bill addresses situations where individuals leave worksites during inspections to obstruct the verification process. These measures will be escalated if the trend of non-compliance continues to rise.

“We expect that the additional legislative tools will significantly contribute to achieving our goals,” Panayiotou said.

Furthermore, to facilitate a systematic approach to combating illegal and undeclared work, employers will now have access to updated information regarding the residency status of foreign workers.

The ministry has also expedited the process for evaluating work permit applications for third-country nationals while maximising the use of available local labour.

“Illegal and undeclared work has multiple negative impacts on our country, and its rising trend necessitates urgent and decisive action,” Panayiotou’s statement concluded.