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Labor-related irregularities on the rise

The Ministry for National Economy has revealed labor-related legal infringements at more than 70% of companies inspected in the first nine months of this year. The irregularities included illegal hiring of workers, business news portal vg.hu reports. 

During the first three quarters of this year, Hungarian authorities inspected 14,000 employers and 60,000 employees, respectively. According to its findings, the rate of illegal hiring has grown from 11.6% last year to 16% in 2017, mostly in construction, agriculture and security companies, vg.hu reports.

In most cases, the employer does not register the employee and does not pay legal taxes. Another tax-avoiding practice is registering the employee as part-time, while he or she works full-time.

In all, infringements related to working hours decreased from 17,900 to 13,700 year-on-year. Fines amounted to HUF 157 million.