ERTE fraud: What are the penalties for non-compliance?
Posted: Sun Dec 15, 2024 5:53 am
Mónica is an expert in the practical application of legislative changes in the daily life of companies and the self-employed.
ERTE fraud has already resulted in more than 32,000 sanction files in Spain. In this post we analyse the causes and consequences of the sanctions for non-compliance that employers face.
November 2020 ended with 746,900 people in an ERTE.
ERTE frauds are a risk for the future of this measure.
The ERTE fraud is excessively large. Only by the first days of December 2020 , more than 32,000 files were already recorded. These have been transformed into more than 3,000 sanction proposals and a claim for more than 13 million euros. Surely, in the coming times, cases will continue to emerge as a result of new inspections aimed at discovering irregularities in the ERTE .
Legal News! A summary albania email list 215428 contact leads of the Royal Decree on social measures in defence of employment (Agreement III).
It may seem like a small proportion, but the 'bill' that each affected company can pay is around 4,500 euros on average . In addition, fraudulent conduct in ERTEs has significant costs that the entire economy has to bear.
Start of marked textShare! And find out when we may encounter a case of fraud in the ERTE and the consequences it has.End of marked text
The harm of fraudulent ERTEs
The most visible victim is the Social Security . Contributions are lost and benefits are granted that are not legally due. This also means damage to the credibility of the system . Even the rise of a source of fraud is a challenge for the inspection services . Not only do they have to find the offenders, but they also have to develop procedures against them.
Furthermore, there is a significant problem in economic sectors where there are large pockets of fraud. If they are not detected in time, they can produce the paradoxical effect of being a springboard for companies with well-established bad practices . Thanks to the ERTE, they will have illegally received funds that will help them prosper.
Compliant consumers , on the other hand, will find themselves at a clear disadvantage . Competition itself may threaten their projects, discouraging compliance with the law.
A very important problem is the effect on competition, since ERTE fraud can end up harming compliant companies.
But the perverse effects also enter into the interior of the defrauding companies themselves. Their workers will receive benefits to which they are not entitled. The working environment in these businesses can end up seriously damaged.
What is not ERTE fraud
It is very important to note that not everything that is not in accordance with the law constitutes fraud. The ERTE raises many doubts . In fact, as a result of concerns, questions, suggestions and answers, successive reforms have been proposed .
Therefore, we should not be afraid to request an ERTE in the terms that we consider appropriate. We will present the documentation and the labour authority will make a decision. Later, some incorrectness may be detected, something that does not fit, but that does not mean that we have committed an infraction .
ERTE fraud has already resulted in more than 32,000 sanction files in Spain. In this post we analyse the causes and consequences of the sanctions for non-compliance that employers face.
November 2020 ended with 746,900 people in an ERTE.
ERTE frauds are a risk for the future of this measure.
The ERTE fraud is excessively large. Only by the first days of December 2020 , more than 32,000 files were already recorded. These have been transformed into more than 3,000 sanction proposals and a claim for more than 13 million euros. Surely, in the coming times, cases will continue to emerge as a result of new inspections aimed at discovering irregularities in the ERTE .
Legal News! A summary albania email list 215428 contact leads of the Royal Decree on social measures in defence of employment (Agreement III).
It may seem like a small proportion, but the 'bill' that each affected company can pay is around 4,500 euros on average . In addition, fraudulent conduct in ERTEs has significant costs that the entire economy has to bear.
Start of marked textShare! And find out when we may encounter a case of fraud in the ERTE and the consequences it has.End of marked text
The harm of fraudulent ERTEs
The most visible victim is the Social Security . Contributions are lost and benefits are granted that are not legally due. This also means damage to the credibility of the system . Even the rise of a source of fraud is a challenge for the inspection services . Not only do they have to find the offenders, but they also have to develop procedures against them.
Furthermore, there is a significant problem in economic sectors where there are large pockets of fraud. If they are not detected in time, they can produce the paradoxical effect of being a springboard for companies with well-established bad practices . Thanks to the ERTE, they will have illegally received funds that will help them prosper.
Compliant consumers , on the other hand, will find themselves at a clear disadvantage . Competition itself may threaten their projects, discouraging compliance with the law.
A very important problem is the effect on competition, since ERTE fraud can end up harming compliant companies.
But the perverse effects also enter into the interior of the defrauding companies themselves. Their workers will receive benefits to which they are not entitled. The working environment in these businesses can end up seriously damaged.
What is not ERTE fraud
It is very important to note that not everything that is not in accordance with the law constitutes fraud. The ERTE raises many doubts . In fact, as a result of concerns, questions, suggestions and answers, successive reforms have been proposed .
Therefore, we should not be afraid to request an ERTE in the terms that we consider appropriate. We will present the documentation and the labour authority will make a decision. Later, some incorrectness may be detected, something that does not fit, but that does not mean that we have committed an infraction .