Cyprus introduces stricter penalties for harbouring illegal or unregistered employees

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Discussion of a government bill that will potentially introduce stricter penalties for undeclared or illegal employment concluded at the Cyprus House labour committee last week. The bill hopes to introduce more severe fines for employers who harbour undeclared labour. The new legislation will mean paying €500 for each illegal employee, with an additional €500 for each month the worker was employed; whereas currently, the law fines a mere €200 one off payment. The bill also introduces the notion of a “minimum employment period”, by which any employers charged with undeclared workers will be assumed to have employed them for a minimum of six months, unless evidence can be provided to state otherwise in court.