On 29 August 2023, the Department of Labour highlighted the amendments to the Economic Crimes Law that extend the criminal liability of legal entities to matters of social security and social security contributions and remunerations. The amendments state that:
- The appropriation or diversion of money from social security contributions deducted from employees' remunerations is punishable by law by penalising the employer who, without the consent of the employee, omits to withhold or pay the social security contributions of employees or declares to the social security institutions to pay him/her a taxable or gross income lower than the real one, reducing the amount of the contributions to be deducted and paid.
- It is an economic crime. Those who falsify certifications of illnesses, injuries, health conditions, dates of diagnoses, or benefits granted shall be sanctioned. Moreover, those who engage in the business of a Social Security Health Institution, especially those who falsify health contributions without being registered before the Superintendent of Health and those who falsify or conceal information from the Superintendent, shall be sanctioned as well.
- The incorporation of a new economic crime into the Criminal Code highlights and punishes whoever commits serious abuse of a situation of need, such as the inexperience or inability to discernfraudulent activities of another person. For instance, the employer pays the employee a disproportionate remuneration and less than the minimum monthly income provided by law or leases the employee a property as a dwelling, receiving an evidently disproportionate consideration.
With these identified economic crimes, the Department of Labour officials will be instructed on their legal obligation to report to the Public Prosecutor's Office any offences under the Economic Crimes Law that they may encounter in the course of their duties.
Key action point
On 29 August 2023, the Department of Labour issued a legal opinion highlighting the modifications in the areas of social security, social security contributions, and remunerations introduced by the Economic Crimes Law, which broadens the criminal liability of legal entities.
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