It is not always easy to detect prohibited practices that seek to disguise the employment of people with trade licenses. In practice, entrepreneurs themselves have problems recognizing whether they are committing a schwarz system. Since January this year, this illegal practice has been a greater risk for entrepreneurs than ever before.

With the changes in the regime of agreements to complete a job and agreements to perform work, the Labour Inspectorate and the tax administration were concerned about the increased use of the illegal schwarz system, which is why the resulting sanctions were tightened at the beginning of this year. Although the level of fines remained the same, the newly added threat of possible limitation of activity has increased the risk. If an entrepreneur allows illegal work to be carried out, a ban of up to two years on his activities may be imposed. The prohibition of activities in the object of business can be completely liquidating for the entrepreneur. Properly set up contracts can help businesses avoid unpleasant consequences.

Proving illegal work itself has become a bit easier for inspectors since January, as the amendment to the Employment Act brought a new addition to the provisions – the duration of work is not essential for assessing illegal work. The characteristics of being long-term was not easy to prove, which is why the effective amendment has already excluded it from the decision-making practice.