Tuesday, 26 June 2012

Employers Change the Nationality of their Employees to Save on Labor Costs

The financial crisis is indeed a source of problems, but sometimes employers cross the line just because the crisis supplies them with ample justification to do so. A very imaginative “solution” was found in Larissa where a witty employer declared his employees as Bulgarians changing their citizenship and, of course, their salaries.
That virtual migration gimmick was revealed after POEEYTE – the Federation of Restaurant, Bar, Catering and Tourism Employees, filed a complaint on the matter. It appears that a large business in Larissa proposed its employees to accept a virtual migration to Bulgaria.
Following that, the employers would rent personnel from Bulgaria and would invite them to virtually come and work in Greece. However, the employees -who would of course continue living in Larissa- would then be insured by the national insurance agency of Bulgaria.
That means that not only would the employees get a lower salary but that the Larissa business would have committed fraud against IKA.

The PEEYTE Federation revealed that:
-Dismissals are dramatically increasing and delays in payments are recorded in Greece’s capital, where 21 hotels have already closed down
-Serious problems in payments is recorded on Rhodes island (95% of businesses has delayed payments)
-Working terms have changed rapidly on Crete after the period of collective bargaining ended
-a wave of dismissals and “black market” work on Corfu island
-‘Black’ jobs recorded in Chalkidiki
Uninsured work in some business sectors is recorded at more than 60%.

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