BUCHAREST – Romania’s government has adopted a set of measures to crack down on illegal labor and income tax avoidance.
The government passed an emergency decree Friday which states that employers will have to keep a copy of employees’ labor contracts at the workplace and documents to demonstrate how much time employees work daily. It was unclear how employers would comply with the last measure.
Employers will be fined for violations and could have their businesses shut down. An employer that hires a person who is the victim of human trafficking risks up to two years in prison.
The leftist government, which has been in office since January, has been criticized for not offering incentives to encourage businesses and for unpredictable legislation.
Just under 30 percent of Romania’s economy is underground.