MEASURES AND ACTIVITIES PREVENTING UNDECLARED EMPLOYMENT State Labor Inspectorate Macedonia MEASURES AND ACTIVITIES PREVENTING UNDECLARED EMPLOYMENT State Labour Inspectorate Director Mr. Goran Jovanovski 29.October.2009

State Labor Inspectorate Macedonia The State Labor Inspectorate is a body within the Ministry of Labor and Social Policy which supervises the enforcement of laws and other regulations pertaining to labor relations, employment, occupational safety and health, collective agreements and employment agreements that regulate the rights and obligations of employees and employers The State Labor Inspectorate is a body within the Ministry of Labor and Social Policy which supervises the enforcement of laws and other regulations pertaining to labor relations, employment, occupational safety and health, collective agreements and employment agreements that regulate the rights and obligations of employees and employers.

State Labor Inspectorate Macedonia The Inspectorate has 95 labor inspectors, of which 62 work in the labor relations domain, organized in 30 areas and three regional departments. The SLI is also responsible for controlling the persons employed without established working relations pursuant to the Law, i.e. whose work is undeclared.

State Labor Inspectorate Macedonia In accordance with the Labor Relations Law, the working relations are established with signing of an employment agreement between the employee and the employer, and the registration of the employee for the obligatory social insurance. The employee cannot commence working before the employment agreement is concluded and before the obligatory social insurance is duly provided.

State Labor Inspectorate Macedonia Pursuant to the 2005 Labor Relations Law, if the labor inspector, while supervising the employer’s activities, should find a person working without established working relations, the inspector shall issue a decision prohibiting the working activities of the employer till the determined irregularities are removed, i.e. till the working relations are established in accordance with the law and the number of persons present at work on the day of inspection The Provision and Use of Work Equipment Regulations 1998 Significant Definitions WORK EQUIPMENT Any machinery, appliance, apparatus or tool and any assembly of components, which are arranged and controlled, to function as a whole. (NOT included: livestock, substances, private cars, and structural items.) USE Any activity involving works equipment. Includes starting, stopping, erecting, installing, dismantling, programming, setting, using, transporting, repairing, modifying, maintaining, servicing and cleaning. DANGER ZONE Any zone in or around machinery in which a person is exposed to an H&S risk from contact with a dangerous part of machinery.

State Labor Inspectorate Macedonia For the committed misdemeanor, the inspector would lodge a request for initiating a misdemeanor procedure with the competent misdemeanor court. Throughout the previous years, the inspectors were detecting about 2000 cases with undeclared workers on a monthly basis; however, after the decisions for prohibiting the working activities were issued, the employers have established working relations with the respective employees, thereby terminating the issued prohibitions. The Provision and Use of Work Equipment Regulations 1998. Reg 4 - Suitability of Work Equipment To be constructed or adapted to be ‘suitable for the purpose’ for which it is used or provided. Selection of work equipment to have regard to working conditions and any additional risks posed by its use. Let’s use the right kit for the job Don’t use incorrect lifting equipment Don’t use incorrect cutting tools Don’t overload mobile plant Don’t use incorrect protective equipment Don’t use incorrect ropes, wires, straps etc. Don’t modify equipment for a different task unless it is ‘suitable’.

State Labor Inspectorate Macedonia Most of the lodged requests for initiation of misdemeanor procedures were not dealt with in due time by the court, which resulted into discontinuance of the procedure due to the statute of limitations. The fines pronounced by the court were also too low, due to which these measures did not contribute towards resolving the problem with undeclared employment, and the employers were encouraged to further violate the provisions of the law. The Provision and Use of Work Equipment Regulations 1998. Reg 4 - Suitability of Work Equipment To be constructed or adapted to be ‘suitable for the purpose’ for which it is used or provided. Selection of work equipment to have regard to working conditions and any additional risks posed by its use. Let’s use the right kit for the job Don’t use incorrect lifting equipment Don’t use incorrect cutting tools Don’t overload mobile plant Don’t use incorrect protective equipment Don’t use incorrect ropes, wires, straps etc. Don’t modify equipment for a different task unless it is ‘suitable’.

State Labor Inspectorate Macedonia In order to overcome the adverse situation with the undeclared employment, in December 2008, amendments and consolidations to the Labor Relations Law were made, which introduced more severe measures aimed towards preventing the undeclared working activities. These amendments foresee that if the labor inspector finds a person working without established employment relations, the one shall issue a decision prohibiting the working operations of the employer for a period of 30 days. The Provision and Use of Work Equipment Regulations 1998. Reg 4 - Suitability of Work Equipment To be constructed or adapted to be ‘suitable for the purpose’ for which it is used or provided. Selection of work equipment to have regard to working conditions and any additional risks posed by its use. Let’s use the right kit for the job Don’t use incorrect lifting equipment Don’t use incorrect cutting tools Don’t overload mobile plant Don’t use incorrect protective equipment Don’t use incorrect ropes, wires, straps etc. Don’t modify equipment for a different task unless it is ‘suitable’.

State Labor Inspectorate Macedonia The amendments to the Law also foresee significantly higher fines for employers with undeclared employees. For such committed misdemeanor, the fine for a legal entity is EUR 15.000 in denar equivalent value and EUR 7.000 for the responsible person The Provision and Use of Work Equipment Regulations 1998. Reg 4 - Suitability of Work Equipment To be constructed or adapted to be ‘suitable for the purpose’ for which it is used or provided. Selection of work equipment to have regard to working conditions and any additional risks posed by its use. Let’s use the right kit for the job Don’t use incorrect lifting equipment Don’t use incorrect cutting tools Don’t overload mobile plant Don’t use incorrect protective equipment Don’t use incorrect ropes, wires, straps etc. Don’t modify equipment for a different task unless it is ‘suitable’.

State Labor Inspectorate Macedonia Novelty is introduced in the law which consists of the fact that the misdemeanor procedure is no longer managed by the court, but by the Ministry of Labor and Social Policy, in which, as of June 2009, a misdemeanor body was established consisting of two commissions for misdemeanors, one for labor relations and one for occupational safety and health. The Provision and Use of Work Equipment Regulations 1998. Reg 4 - Suitability of Work Equipment To be constructed or adapted to be ‘suitable for the purpose’ for which it is used or provided. Selection of work equipment to have regard to working conditions and any additional risks posed by its use. Let’s use the right kit for the job Don’t use incorrect lifting equipment Don’t use incorrect cutting tools Don’t overload mobile plant Don’t use incorrect protective equipment Don’t use incorrect ropes, wires, straps etc. Don’t modify equipment for a different task unless it is ‘suitable’.

State Labor Inspectorate Macedonia During the first three months as of the adoption of the amendments to the Law the inspectors have acted in an informative and educational manner so as to familiarize the employers with the respective amendments to the Law and the foreseen measures. For that purpose, the Inspectorate has prepared 65.000 brochures containing the amendments and consolidations to the Law, which were distributed to all registered legal entities. The Provision and Use of Work Equipment Regulations 1998. Reg 4 - Suitability of Work Equipment To be constructed or adapted to be ‘suitable for the purpose’ for which it is used or provided. Selection of work equipment to have regard to working conditions and any additional risks posed by its use. Let’s use the right kit for the job Don’t use incorrect lifting equipment Don’t use incorrect cutting tools Don’t overload mobile plant Don’t use incorrect protective equipment Don’t use incorrect ropes, wires, straps etc. Don’t modify equipment for a different task unless it is ‘suitable’.

State Labor Inspectorate Macedonia Throughout the current year, several trainings for inspectors were organized for the purposes of more efficient detection and undertaking of legal measures against undeclared employment. The inspectors perform their duties in accordance with the Program of Activities, the Action Plans and the joint supervisions with several inspectors in the same city.

State Labor Inspectorate Macedonia For the purposes of increased efficiency in terms of performing the supervisions, SLI cooperates with other bodies and organizations, such as the Public Revenue Office, other inspection bodies, Financial Police, MoI, the Employment Agency, the unions, etc.

State Labor Inspectorate Macedonia Currently, a software is being designed which would connect the Inspectorate through a network with all areas and institutions from which useful data could be obtained; such institutions are the Central Registry, the Public Revenue Office, the Employment Agency, etc.

State Labor Inspectorate Macedonia By having intensive supervisions, the foreseen measures – prohibition from working activities for a period of 30 days and a fine of EUR 15.000 for a legal entity and EUR 7.000 for the responsible person, are already yielding measureable results. So, pursuant to the official data of the State Statistical Office, besides of the economic crises, in the second quarter of 2009, as compared with the same quarter in 2008, the number of employed persons has increased by 4.8%, whereas the number of unemployed persons was reduced by 4.1%.

State Labor Inspectorate Macedonia Good buy, Have a nice day Thank you