As a result of the control work completed in March 2024, a total of 70 taxpayers were found to have failed to register, and the amount of the fine was 34,750 million drams, SRC reports.
17 taxpayers were fined 19,750 million drams for 17 cases of non-registration of three or more employees.
in the field of construction (except building construction and road construction), 11 undocumented wage workers were identified in 3 cases of 3 taxpayers, a fine of 4 million drams was imposed.
in the field of accommodation organization, 3 undocumented wage workers were identified in 1 case of 1 taxpayer, a fine of 750 thousand drams was imposed.
in the field of public catering. 1 taxpayer with a banquet hall had 3 undocumented employees identified in 1 case, a fine of 750,000 drams was imposed, and 8 undocumented employees were identified in 2 cases among 2 taxpayers who did not have a banquet hall, a fine of 2 million drams was imposed.
5 undocumented wage workers were identified in 1 case of 1 tax payer in a grocery store, a fine of 1,250 million drams was imposed.
in the field of liquid and solid fuel trade, 11 undocumented wage workers were identified in 2 cases of 2 taxpayers, a fine of 2.750 million drams was imposed.
3 undocumented wage workers were identified in 1 case of 1 taxpayer in the field of construction materials trade, a fine of 750 thousand drams was imposed.
in the field of building construction, 4 undocumented wage workers were identified in 1 case of 1 taxpayer, a fine of 1 million drams was imposed.
in the fields of construction (except for building construction and road construction), building construction, trade venue organization, 4 unorganized wage workers were identified in 1 case of 1 taxpayer, a fine of 1 million drams was imposed.
In the fields of building advancement and construction (except for building development and road construction), 3 undocumented wage workers were identified in 1 case of 1 taxpayer, a fine of 750 thousand drams was imposed.
In the field of car maintenance and/or car washing, 7 undocumented employees were identified in 1 case of 1 taxpayer, a fine of 1,750 million drams was imposed.
in the field of clothing, footwear and fabric trade, 9 undocumented wage workers were identified in 1 case of 1 taxpayer, a fine of 2,250 million drams was imposed.
The nominal list of 17 taxpayers who committed a violation in terms of three or more informal wage workers, according to the spheres of activity.
The list of 70 taxpayers who committed violations regarding unorganized wage workers.
How can employers implement effective strategies to ensure labor law compliance and avoid fines related to undocumented workers?
Interview: Addressing Undocumented Wage workers and Tax Compliance – An Insightful Dialog
Publisher’s Note: Considering recent findings regarding undocumented wage workers and associated fines, we sat down with Dr. Anna Grigoryan, an expert in labor economics and tax compliance, to discuss the implications of these violations and how businesses can navigate this landscape effectively.
Time.news Editor (TNE): Thank you for joining us today, dr. Grigoryan. Let’s dive right into the recent report from the state Revenue Committee (SRC), which indicates that 70 taxpayers were fined a staggering total of 34.75 billion drams due to non-registration of employees. What does this imply for businesses across various sectors?
Dr. Anna Grigoryan (AG): Thank you for having me. The implications of these findings are profound. This report highlights a significant lack of compliance with labor laws, particularly in industries like construction, hospitality, and retail. It serves as a wake-up call for businesses, emphasizing the need for accurate employee registration to avoid hefty fines and maintain a reputable business presence.
TNE: Indeed. Among these violations, 17 taxpayers were noted for employing three or more undocumented wage workers, leading to fines of around 19.75 billion drams. What are the long-term consequences for these businesses?
AG: Businesses found in violation face immediate financial repercussions, but the long-term consequences can be even more severe. These include potential legal actions, loss of reputation, and the risk of more stringent inspections in the future.Moreover, operating with undocumented workers could result in a lack of trust from legitimate employees and clients, ultimately affecting the business’s bottom line.
TNE: The report also outlined fines imposed on specific sectors, such as 1 million drams for the trade of construction materials due to undocumented employees.Which industries are moast at risk for these kinds of violations?
AG: Industries with high levels of informal labor are particularly at risk, including construction, public catering, and retail. These sectors frequently enough employ workers who may not be familiar with the legal requirements or might potentially be more vulnerable, leading to non-registration.It’s crucial for employers in these fields to implement proper HR protocols and conduct regular compliance training.
TNE: With such significant fines,what practical advice would you give to business owners to help them avoid similar issues?
AG: Firstly,businesses must prioritize compliance by understanding and abiding by labor laws. This includes ensuring all employees are registered accurately and paying proper wages. Regular internal audits can help identify non-compliance before authorities do. Employers should also invest in employee education about labor rights and create transparent channels for reporting violations.Engaging with an HR or legal expert can provide additional guidance tailored to specific industries.
TNE: Beyond compliance, what broader societal impacts do you see arising from the issue of undocumented wage workers?
AG: The prevalence of undocumented workers can lead to a host of social issues, including unfair labor practices and downward pressures on wages. It undermines employee rights and inhibits economic growth by creating a shadow economy. Addressing this issue is not only essential for the health of individual businesses but also for the integrity of our labor market and overall economic stability.
TNE: Thank you, Dr. Grigoryan. It’s clear that compliance with labor laws isn’t just a legal obligation; it’s also crucial for fostering a fair, sustainable, and productive business environment.
AG: Absolutely. It’s about building trust and ensuring the protection of all workers.Businesses have the power to drive change by operating transparently and ethically.
the findings regarding undocumented wage workers and the associated fines underscore the urgent need for compliance in various sectors. business owners are encouraged to take proactive steps in ensuring that all employees are properly registered and that they have a clear understanding of their legal responsibilities.