Recognition of a labour contract and fight against concealment of subordinate labour relations

Through the Law no. 55/2017, the scope of the special action of recognition of a labour contract, as well of the procedure mechanisms of fight against concealment of subordinate labour relations are extended, proceeding to the second change of the Law no. 107/2009, of 14 of September, and to the fifth change to the Labour Procedure Code, approved by the Decree Law no. 480/99, of 9of September.

This enlargement of procedure mechanisms aim to fight the fake "green receipts" and all forms of non-declared work, including fake internships and fake volunteering.

Through this law, the following amendments shall apply:

• Extension of the situations in which the Authority for working conditions is competent to introduce the procedure to be followed in case of inadequacy of the labour bond that supports the provision of an activity in the same conditions as a labour contract;
• In case of dismissal after such procedure, the Public Prosecution Service can directly resort to the Courts to initiate a precautionary procedure of suspension of dismissal;
• Authority of working conditions deliver´s the notification of the facts to the Public Prosecution Service of the Court of the place where the provision of the activity takes place, instead of referring it to the one in the area of residence of the employee;
• The Public Prosecution Service has now active legitimacy to start actions of recognition of a labour contract and to the procedures of fight against concealment of subordinate labour relations;
• The possibility to conciliate the parties before the trial ceases to exist, beginning immediately the trial;
• The decision will be communicated from the Court to the Authority of working conditions and to the Institute of Social Security, I.P., in order to the regularization of the contributions from the date of the beginning of the employment relation.

This law is in force on August 1th, 2017.