The Under-Secretary for Labour, Raúl Riesco, has urged at least 50,000 companies to correct their employees' situation, given the signs of labour fraud.
The Ministry of Labour wants to put an end to the irregular situation of workers at at least 50,000 companies which, in the words of Raúl Riesco – the department's Under-Secretary, speaking on Cadena SER's Hoy por Hoy programme – have already been notified of the need to put their affairs in order in this respect, in view of the "signs of labour fraud" provided by the Social Security General Treasury and the Tax Agency. The aim is for "companies to comply with labour legislation", through an initiative that, by letter, invites companies to regularise their workers' situation. Given the signs of labour fraud, the Government intends that, with this communication, companies will regularise their employees within one month. If they do not, labour inspectors would be sent in.
In this regard, Riesco announced that the workforce assigned to labour inspection will be increased by 23% over the next five years. There are currently 1,876 professionals dedicated to labour inspection; the figure has barely risen since 2010 (when there were 1,850), Riesco points out. The increase in the number of people in work (the aim is to reach 20 million people in employment by 2022) and the transformation of the labour market make efficient labour inspection even more pressing.
Bogus self-employment
Regularising bogus self-employed workers is one of the objectives of this initiative, since self-employment – in the form of the "autónomo" – has, from the start of the crisis to the present day, become an excuse for companies to break labour regulations and avoid paying Social Security contributions. There are also types of fraud typical of this period, according to Riesco: more temporary contracts in breach of the law, which should be permanent, or irregular part-time contracts.
One of the sectors where bogus self-employment has proliferated most is transport, as well as construction, the meat industry and home delivery services. "It is an unfair practice for their workers, who lose contributions", and for the public in general, since Social Security revenue falls, and that affects the common good. At REAC we believe that roadside assistance and tow truck companies should take note of this new Government initiative.