Combating illegal work in the Czech Republic. Martina Vácová Foreign Employment Unit Ministry of Labour and Social Affairs

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1 Combating illegal work in the Czech Republic Martina Vácová Foreign Employment Unit Ministry of Labour and Social Affairs 1

2 Content Current situation on the Czech labour market Valid legislation Terminology and types of illegal work Sanctions - misdemeanours and fines Authorities combating illegal employment Statictics - illegal foreign employment Ways to combat illegal work Current policy of MoLSA 2

3 Basic Figures September 2013 Number of inhabitants in the CR Working population Jobseekers Registered unemployment rate 7,5 % (EU 27 11,3%) Job vacancies job vacancy about 17 job seekers 3

4 Valid Legislation Act No 435/2004 Coll.,on Employment, as amended; Act No 262/2006 Coll., the Labour Code, as amended; Act No 326/1999 Coll., on Residence of Foreigners in the Territory of the Czech Republic, as amended; Act No 251/2005 Coll. on Labour Inspection, as amended; Act No 500/2004 Coll., on Administrative Procedure (Administrative Rules), as amended; Act No 634/2004 Coll., on Administrative Fees, as amended; 4

5 Terminology of illegal work 1) a natural person does not perform work for a legal entity or natural person on the basis of a socio-legal relationship or another contract, when the natural person is not the spouse or child of this natural person. Amendment : a natural person performs dependent work outside an employment relationship. Dependent work (defined in the Labour Code) 2) a foreigner fails to perform work in compliance with the work permit/green card/blue card that has been issued or they perform work without the permit/card provided that it is required according to the Employment Act. 3) a foreigner without a valid visa/residence permit required for a legal stay in the territory of the CR performs work for a legal entity or natural person. Implementation of the Directive No. 2009/52/EC on sanctions and measures against employers of illegally 5 staying third-country nationals.

6 Types of illegal work So called Švarc system False or absent work contract or agreement Undeclared overtime Cash in hand payment without valid work permit, resident permit 6

7 Sanctions - misdemeanours and fines A natural person or a foreigner commits a misdemeanour by performing illegal work fine up to CZK (approx ) A legal entity or a natural person commits a misdemeanour by enabling a natural person or a foreign national to perform illegal work fine min CZK up to ,000 CZK (approx ) A legal entity or a natural person commits a misdemeanour by mediating employment without a permit or otherwise contravening Act on Employment by mediating employment fine up to 2.000,000,- CZK (approx ) 1 EUR = approx. 25 CZK Fines are imposed by State Inspectorate Labour office and collected and enforced by Customs Offices. 7

8 Structure of authorities combating illegal work Ministry of Labour and Social Affairs Ministry of the Finance Ministry of the Interior State Labour Inspection Office (General Inspector) The Customs Administration (General Directorate of Customs) Alien Police Service (Directorate) Regional Labour Inspection Offices Customs Offices Alien Police Inspectorates 8

9 Results of controls of illegally employed foreigners - performed by Labour Office Relevant period (year) Numbers of controls - employers Number of controlled foreign workers Number of cases - undeclared work Number of cases - illegal work

10 Ways to combat illegal work Project Efficient system of employment, complex inspections performance and combating illegal employment in the CR Internet web sites of MoLSA - information system supporting legal work Seminars for employers, cooperation with non-profit organizations etc. Preventions information provided to labour migrants, leaflets and publications for foreigners on living and working conditions in the CR Inter ministerial meetings focus on combating illegal employment of foreigners organized regularly by MoLSA 10

11 Current policy of MoLSA Protection of domestic labour market and employment of foreigners in sectors affected by lack of workforce provided that registered jobseekers can not be recruited Long term unemployment and illegal work are the biggest challenges Prefer employment of foreigners already staying in the CR to newcomers Strengthening protection of employed foreigners (insurance, proper working conditions, sufficient reward) Strengthening of employer responsibility in case the foreigner is laid-off/dismissed 11

12 Martina Vácová Foreign Employment Unit Ministry of Labour and Social Affairs 12