Compliance
Illegal Employment
Work performed outside a legal employment relationship or by individuals without proper permits.
Definition
Illegal employment refers to dependent work performed by a natural person outside a legally established employment relationship (e.g., without a valid employment contract) or work performed by foreigners without the necessary work and residence permits. It also includes the 'Švarc system,' where dependent work is disguised as self-employment, and concealed agency employment. The Labor Inspection Act grants the SÚIP significant powers to detect, investigate, and impose substantial fines for instances of illegal employment.