Phone: +371 26320041

Criminal liability for the undisclosed payment of remuneration

April 18, 2016   •  11:51

The Amendments to the Criminal Code, which provides for criminal liability for the undisclosed payment of remuneration exceeding EUR 3700 that is not recorded in the accountancy system, have come into the force from 07.04.2016. The Amendments to the Criminal Code are providing series of changes in the criminal justice framework and have been supplemented with a new article, which criminalises the employer who pays wages, which are not shown in the books.

The Amendments provide for a new legal framework for criminal legislation concerning the "envelope" wages to the excess of ten minimum wages, a penalty imposed for wrongdoing is the deprivation of liberty for a term not exceeding two years or temporary imprisonment.  

Additionally the changes to the Administrative Code for the "envelope salaries' payment of up to ten minimum monthly wages are subject to administrative responsibility. As an alternative punishment the law provides for community service or a fine, the deprivation of rights to perform commercial activities of all types or specific type; deprivation of the right to hold certain positions for a period of up to three years.