efficient_combating_the_informal_economy.doc

61 this legal employment institute is also under

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This legal employment institute is also under attack through abuse of so-called flexible work forms and in situations when their application is unlawful. As work outside of employment contract, conclusion of temporary and occasional service agreements is most frequently used in cases when there are no main characteristics of temporary and occasional work. In the course of inspection supervision, labour inspectors have come across so-called “phantom companies”, i.e. companies that are not registered with the competent authorities but are illegally employing workers. This problem tends to become more serious for, in such cases, inspectors are unable to perform inspection supervision and take legal action due to their incompetence (it falls under the competence of market and tourisms inspection). As a result, such manner of employment is not terminated. However, apart from these problems that labour inspections encounter, the increase in number of employment contracts concluded and registrations of workers with the social insurance funds after the inspection supervision is evident. Apart from the more severe penalty policies, a greater respect for this institute is resulting from the methods of supervision, i.e. the fact that such supervision is also carried out outside of regular working hours – in the afternoon, by night, at weekends, namely at the time when clandestine employment is more exploited. Employment relationship is established by concluding a written employment contract and rights and liabilities are ensured from the moment the employee starts working. In this manner, the employment has both contractual and status significance. Clandestine employment is a phenomenon that has being combated by the labour inspection authorities for years now. Considering constant monitoring of this phenomenon, some of its features are evident, such fields of activity, regions and periods in which it most frequently occurs. Clandestine employee can at any time experience termination of employment by being informed that his services are no longer required. Clandestine employment refers to propriety of rights ensuing from the employment contract but not to a legal employment relationship. 62
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According to Labour Inspectorate data, clandestine employment is mainly occurring in trading, catering, crafts, industrial and manufacturing units and construction. Considering that we constantly monitor the scale of this phenomenon, the above-stated fields of activity are mainly supervised. In some fields of activity, the number of clandestine workers is observed increasing each year in the same periods of the year. This is particularly characteristic for the catering and construction sector. In the catering sector, due to enhanced scope of business, there is a growing number of total working population in the summer period, including clandestine workers. In the construction sector, the number of clandestine workers is abruptly growing towards the end of the building
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