Two bills to tackle undeclared work, Labour Minister tells Youth Parliament

Undeclared work was a major topic of discussion at the recent meeting of the Youth Parliament’s Labour Committee, attended by the Minister of Labour and Social Insurance, Yiannis Panayiotou, who stated that two bills aimed at combating undeclared, but also under-declared work are being promoted for adoption in the coming period.

Responding to questions during the 12 October debate, the Labour Minister said the average rate of undeclared work is 13%, but there are sectors where the rate is lower, especially in clerical professions, while in other sectors - such as the construction industry - it is much higher.

The Minister informed the Committee members that, following dialogue with the social partners, a bill to require employers to record the terms and conditions of staff employment, which should also be updated in line with changes that may occur during that time, will soon be put to the vote in the House of Representatives. This, Panayiotou explained, will help identify both undeclared and under-declared work and will allow for the "better control and monitoring of the market, so that what is agreed and what is provided for by the legislation is implemented".

The Minister also referred to a second bill, which will make its way to the plenary session of the House for a vote in the coming weeks and foresees increased penalties for employers who offer undeclared work. He said the aim of the bill is for penalties to act as a deterrent, with the cost of the penalty being offset against the benefit that the employer may derive from undeclared work.

He also referred to the target set to enable the tabling of pension reform bills in 2025. He noted that it is "an ambitious goal, but one that can be achieved with technical expertise and cooperation of the social partners".

In closing, the Minister reiterated the importance of the CoLA mechanism to protect workers from the rising cost of living and recalled that June 2025 is a milestone for the completion of the dialogue on this issue.

(Source: CNA)