Employers using more than five people without work contracts will be punished by 1-2 years in prison or a criminal fine, will be denied state aid and EU funds and will be forbidden from taking part in public procurement auctions, says the amended Romanian Labor Code.  The amended Code was approved Monday by the Government and will be adopted through a confidence vote in Parliament.

The Code says employers hiring up to five people without individual work contracts will be fined between EUR 2,375 and EUR 4,750 per person. Hiring more than five people without contracts will constitute a crime and the employer will receive a prison sentence of one-two years, or forced to pay a criminal fine. The Code provides the same punishment for hiring a person living illegally in Romania, when the employer knows they are a victim of human trafficking.

If the work poses a risk to the person's life or health, the punishment is six months to three years in prison. The person found working without a contract will also be fined between RON 500 and RON 1,000 (around EUR 118 to EUR 237).

A court may also forbid an employer found using illegal labor from receiving state aid, including European Union funds managed by Romanian authorities, for up to five years, or from taking part in a public procurement auction. The court may also instruct the employer to refund the state aid or EU funds acquired up to 12 months prior to the crime, as well order the temporary or permanent closing of the work area(s) where the crime was committed.

Mediafax