The Spanish Council of Ministers approved a draft law to combat illegal employment and Social Security fraud last Friday, this will now go forward for approval by parliament.
There will be special monitoring of fraud in job lay-offs, reduced employee hours and job suspension.
Amongst other things the bill gives the Labour and Social Security Inspectorate more access to databases, such as the unique notary index, it also extends the deadline for length of proceedings in particularly complex cases of fraud, and ensures that it is no longer more economically favourable to pay a fine rather than comply with legislation.
Cases involving defrauding the Social Security by declaring lesser hours than are actually worked by employees, or fiticious contracts which allow improper access to unemployment benefits, or the unlawful use of suspensions of contracts or reduced working hours as part of redundancy applications can be sanctioned by an amount ranging from 6,251 euros to 187,515 euros in proportion to the number of unaffiliated employees or irregular actions.
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