Spanish government to launch inspections to find and fine those companies who are hiring workers illegally i.e. without the requisite paperwork or if not paying social security tax in Spain.
The effects of the economic crisis continue to be felt and with as much as 25% of the Spanish economy believed to be outside the purview of the state and an estimated 400,000 illegal workers, the government is planning to get tough with a series of measures designed to impact on the black market.
The new campaign by the Spanish government to combat the black market is to be launched before the summer. Final details are being agreed and will be put to a cabinet meeting sometime during May. Both union groups as well as employers’ organisations are considering the draft proposals ahead of final confirmation by the council of minister’s meeting.
It is already known that among the measures that will be announced include a doubling of fines for hiring workers without the requisite paperwork being in place as well as automatically preventing those who are working illegally while being registered as unemployed from receiving any further unemployment benefits.
More than 265,000 inspections are to be carried during the course of the campaign and while fines will not increase during an initial four month grace period they will eventually reach anywhere between €6,500 and €400,000. The campaign will be under way by July.