Gray wages are not taken into account when calculating pensions, sick leave and other social benefits. When an employee goes on vacation, his vacation pay may be much less than the salary in the envelope. For reporting purposes, they will be calculated not based on the actual, but on the official salary.
Also, a person who receives a gray salary may be denied a loan, since no bank will issue him a mortgage or other loan with a small official income.
Lack of protection of labor rights
In case of a conflict with the employer, the employee will not be able to prove the actual amount of his salary. Again, in case of forced dismissal or forced layoff of the employee, he may be denied severance pay.
Meager salaries
Source: shutterstock.com
Criminal liability
In some cases, employees may be usa email list held liable for complicity in tax evasion. An employee is a taxpayer. When an employee receives an unofficial portion of their salary from which they do not pay personal income tax, they are breaking the law. If the case goes to court, it will be difficult to prove that the employer was not involved in financial fraud.
Read also!
"Types of managerial liability: how to protect yourself from legal risks"
Read more
What workers can do to protect themselves
By paying a grey salary, the employer risks encountering an intractable employee.
What workers can do to protect their rights:
Contact the labor inspectorate
Employees can file a complaint with the State Labor Inspectorate, which will conduct an inspection and take action if violations are found. In this case, the employer will be forced to pay a fine or compensation.
Go to court
Workers can file a lawsuit to protect their labor rights and recover unpaid wages.
Court
Source: shutterstock.com
Report to tax authorities
Employees can report violations to tax authorities, who will conduct an investigation and take action.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
The Secret ROI Formula: Instant Advertising Efficiency Calculator
Anti-crisis Solutions Matrix: Find the Perfect Strategy for Your Business in 15 Minutes
We have prepared all the documents and templates with formulas for you. And yes, it is FREE.